Page Perry's Market Monitor - February 13, 2009
There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:
• The Dow Jones Industrial Average opened the week at 8281 and dropped 10 points on Monday.
• On Tuesday, the Dow Jones Industrial Average plunged 382 points.
• On Wednesday, the Dow Jones Industrial Average rebounded 51 points.
• On Thursday, the Dow Jones Industrial Average fell 7 points.
• On Friday, the Dow Jones Industrial Average lost 82 points and closed the week at 7850.
• The news on jobs continues to deteriorate in February.
• Nissan announced that it was slashing 20,000 jobs worldwide.
• Walmart plans to cut up to 800 corporate positions.
• Nike is reportedly considering the elimination of 1,400 jobs as a part of its restructuring.
• General Motors is eliminating 10,000 salaried jobs and is cutting salaries of others.
• Toyota Motor Corp. announced that it was offering buyouts to about 18,000 employees.
• Pioneer Corp., the Japanese electronics company, iscutting 10,000 employees worldwide.
• UBS posted a quarterly loss of $6.9 billion and announced plans to cut as many as 2,500 more jobs by yearend.
• Peanut Corp. of America filed for bankruptcy protection. The company has been accused of selling tainted peanut butter products.
• Credit Suisse reported a record quarterly loss of $5.2 billion.
• PepsiCo’ s most recent quarterly profit fell 43%.
• Arnold Schwarzenegger, the Governor of California, could terminate up to 20,000 California state employees unless an impasse over the state’s budget can be resolved. Other proposed cuts would adversely impact public parks, schools, and highway construction. Unfortunately, many states are facing similar dilemmas.
• The U.S. military appears to be benefiting from the horrid job market. All branches of the military exceeded active duty recruiting goals in January.
• MacDonalds announced that sales increased 7.1% in January.
• Charter Communications will file for bankruptcy by April 1.
• Four more banks were closed by regulators this week. Thirteen banks have now been shut down so far this year.
• As major corporations and organizations cutback on conventions, retreats and meetings, the travel industry is suffering huge losses. Airlines, hotels, and restaurants are among those most affected.
• New York Attorney General Andrew Cuomo has accused Merrill Lynch executives of acting irresponsibly in awarding employees $3.6 billion in bonuses at a time when the firm was receiving bailout funds from the federal government.
• According to the Harvard University Joint Center for Housing Studies, 1 out of every 9 homes in the U.S. is vacant.
Page Perry’s Market Monitor is published periodically to give investors an overview of certain recent developments impacting the economy and/or the investment markets.
