Page Perry's Market Monitor - February 5, 2010
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 10,067 and, on Monday jumped 118 points.
• On Tuesday, the Dow Jones Industrial Average rose 111 points.
• On Wednesday, the Dow Jones Industrial Average dropped 26 points.
• On Thursday, the Dow Jones Industrial Average plunged 268 points.
• On Friday, the Dow Jones Industrial Average rose 10 points and closed the week at 10,012.
• Concerns about lost jobs and European debt problems rattled the markets this week.
• MSNBC reports that Portugal, Greece and Spain are all facing financial crises that are causing concerns in financial markers across the globe.
• Some good news came on the unemployment front when it was announced that the unemployment rate had dropped to 9.7%. Unfortunately, economists still predict that it will take at least four years for the economy to regain the 8.4 million jobs lost in the recession.
• CBS News announced that it was laying off dozens of additional employees due to budget cuts. This action reflects an ongoing trend that has decimated many of the news sources that Americans have relied on over the years. Continuation of this trend may ultimately pose a threat to our “free press.”
• Berkshire Hathaway has eliminated 3,000 jobs since December.
• Sony Pictures announced that it would eliminate 450 jobs because of declining DVD sales.
• Walmart reported that it was eliminating 300 more jobs at its headquarters. The retail giant has now cut almost 14,000 jobs in the past twelve months.
• Both Ford and General Motors reported double-digit sales gains in January.
• Manufacturing activity grew for the sixth straight month.
• Warren Buffet’s Berkshire Hathaway lost its AAA rating at Standard & Poors.
• New York Attorney General Andrew Cuomo filed civil fraud charges against Bank of America and its former CEO Ken Lewis.
• Bank of America agreed to pay $150 million to settle SEC claims that it mislead shareholders in the Merrill Lynch acquisition. A U.S. District Court rejected the bank’s earlier attempt to settle similar claims for $33 million.
• State Farm is canceling insurance coverage for approximately 125,000 Florida homeowners.
• Some high profile bankers disagree with other commercial property experts on the situation in the commercial real estate market. Some believe that the market has hit bottom while others feel that the problems are just beginning. It’s a situation to keep a close eye on.
• Banking regulators closed a small Minnesota bank this week, making it sixteen banks that have been closed this year.
• U.S. exports increased by 18.1% in the last quarter of 2009. The weak U.S. dollar undoubtedly contributed to this surge.
• USA Today reports that many state and local governments used federal stimulus money to minimize spending cuts. As a result, many experts are concerned about what happens when the federal stimulus money is gone.
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.
