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Stock Market Recap December 4th
Dow Up 21 [10,388] and S&P Up 5.93 [1,105]. The November jobs report came out really positive but the stock market didn’t do much. It was actually negative some of the day. Why is that? The dollar was up 1.50%. I believe that was just a short cover rally on the dollar. Kind of a knee jerk reaction because the Banksters think the Fed may raise rates on the positive economic news. The Fed came out during the day letting the Banksters know that they will not raise rates and that is why the market closed up. So all the Banksters can keep killing the dollar. Gold got slammed and I think that was just a knee jerk reaction as well. Silver did not go down as much as gold which really points to a knee jerk reaction in gold. I believe this is a buying opportunity for gold. Oil down $0.89 to $75.57, Dollar up 1.14 to 75.77, Gold down $61.00 to $1,157, 10 Year Treasury Yield Up to 3.47%, Baltic Dry Index up 1.11% to 4,107 and Volume 1.4 billion.
Fed Officials Not Joining Jubilation Over Jobs
A better-than-expected turn in labor markets last month is driving some in the financial markets to rethink what lies ahead for the Federal Reserve. But central bankers who spoke Friday seem unwilling to endorse the shift in sentiment.
Their reluctance makes sense, given that the only meaningful economic trends are sustained ones. Also, some slow improvement in the jobs market is consistent with their expectations. All of that means Fed officials have no reason to move away from their existing pledge to keep rates low for an extended period.
(In other words, don’t worry Wall Street we are going to keep killing the dollar so you can make your next yacht payment.)
UK Credit Card Write-Offs Double in Q3
In a sign that Britons are facing increasing difficulties keeping their finances under control, bad debts from credit cards leapt from £812m to £1.6bn in the third quarter, said the Bank of England.
The rise meant that the total amount written off by UK banks in that quarter was, at £4.3bn, a record. In the first nine months of the year, banks have already written off more than they did in the whole of 2008 – itself a record year for write-downs.
The news came as a surprise to banking experts, since most of the UK banks have reported that the outlook improved marginally in the third quarter. Although banks have already provisioned for significant losses, some will view the statistics as a sign of a potential second wave of difficulties for the banking sector. While most of the losses faced in the financial crisis were associated with US sub-prime lending and the closure of securitisation markets, some suspect there may follow major “home-grown” losses as UK households face higher unemployment and falling real wages.
The International Monetary Fund warned earlier this year of a potential credit card crisis in Europe as families default on their debts, predicting that up to 7pc of Europe’s £1.49 trillion consumer debt could be written off, with the UK hardest hit.
The Bank also reported that households repaid a record amount of unsecured credit in October as they faced up to unprecedented credit card bills. It said net unsecured debt contracted by £579m. Its statistics also showed that its key measure of underlying money growth dropped by 0.7pc in October. The fall is a concern, since the Bank has repeatedly said that this measure will help show the success or otherwise of quantitative easing. However, a household-focused measure of money growth is still rising.
State Taxes Going Up
Speeders doing more than 85 miles per hour in Georgia will soon pay an additional $200 in fines. Racehorse owners in New York now must fork over $10 to enter their steeds in events. And Massachusetts started charging a 5% tax on broadcast satellite service.
These measures are part of a record $23.9 billion in tax and fee hikes and $7.7 billion in other revenue increases enacted by states in fiscal 2010, according to a report released this week. This is a massive jump over the $8.1 billion in revenue hikes instituted the previous year.
“These are the highest tax increases ever,” said Scott Pattison, executive director of the National Association of State Budget Officers, which co-produced the semi-annual report with the National Governors Association.
And more taxes increases are likely on the way, experts said.
States are wrestling with some of the worst budget deficits since the Great Depression. Rising unemployment has wreaked havoc on their vital revenue streams of personal income, corporate profits and sales taxes.
Though governors and lawmakers are reluctant to raise taxes, particularly in bad economic times, the current fiscal situation has left them little choice, Pattison said.
Some 29 states enacted revenue hikes for fiscal 2010, which began on July 1 in nearly all states. Personal income tax hikes accounted for the largest portion, some $10.7 billion. Corporate levies declined by $202.2 million.
Headlines:
RJ Reynolds Tobacco Cutting 1,800 Jobs
Corus Cutting 1,700 Jobs
ZymoGenetics Cutting 52 Jobs
Calhoun County Cutting 5 Jobs
Saugerties School District Cutting 36 Jobs
Lincoln Foodservice Products Cutting 190 Jobs
Berkshire Hills Regional School District Cutting 9 Jobs
Toyota Formula One Cutting 600 Jobs
Telus Cutting 125 Jobs
Avid Technology Cutting 120 Jobs
Josam Cutting 8 Jobs
Jefferson County Cutting 18 Jobs
Owens Cutting 150 Jobs
Lockheed Martin Cutting 600 Jobs
Energy Conversion Devices Cutting 400 Jobs
The Motion Picture Home Cutting 13 Jobs
Upper Deck Cutting 33 Jobs
Abbott Laboratories Cutting 80 Jobs
Pfizer Cutting 200 Jobs
Sunoco Cutting 400 Jobs
Jobs Lost: 6,539
Companies Closed or Bankrupt this Week:
Love & Learning Child Care
Sparrow Health System is closing its fertility center
St. Alexander Catholic school in Villa Park Recommended to Close
Colonial Williamsburg Foundation will Stop Printing Catalog – 16 Jobs Eliminated
Georgia-Pacific’s Wauna Mill to Shut Down Older Machines
Business Week SmallBiz Magazine Last Issue Dec/Jan
Gerbes Pharmacy in Fulton Closes Today
Fella Bella in Downtown Lebanon
Update: Minnesota Correctional Facility
Warren Hospital Closing Drug & Alcohol Center
Owens Inc Closes 2 Shawano Plants – 150 Jobs Lost
Rock and Roll Hall of Fame Annex in New York City
The N.C. Chamber
Natale’s Men’s Clothier
CD Connection in Jacksonville Beach
Publix Supermarkets at Memorial and Northfield
Nokia Closing Regent Flagship Store ( International )
Maternity Unit at Willingboro Hospital?
Standard Motors
Sunoco Plant in Westville Closed – 400 Jobs Lost
The Chick-Fil-A in Schuylkill Mall
Iggy’s Sports Grill in Meridian and Idaho Falls
Whitaker Foods in Waterloo
Iowa Mental Health Centers – At Least 1 will Close
The Nelson and District Arts Council
National Geographic closing Adventure Magazine
McElroy Tire
Terex Load King in Elk Point – 73 Jobs Eliminated
Quality Markets in Ellicottville
Shop Rite in Warminster Pa – 50 Layoffs
Linamar Corporation ( International ) Closing Canada Plant – 134 Jobs Lost
Camp Appalachian Wilderness
Verizon Call Center in Shreveport , and others
Farmington Medical Supplies and Services
New York City – 4 Schools Closed with More to Come
Regole’s Harvest Shoppe
Jimmy John’s Gourmet Sandwiches & Talbots Clothing Store in Downtown Ames
Update: Fashion Bug in Norwalk
Qwest will close its directory assistance operation in Duluth
Mimi’s Plus
Kindred Healthcare Inc in Modesto
Beecroft & Bull Closing Hilton Village Store
Century Boat Co in Pamela City
Update: Dollar Store in Pasco
JT Packard Closing 2 Facilities in Verona – 300 Jobs
Air Cruisers – 90 Jobs Lost
Dallas Theatre Closes Again
Michigan closing 5 Rest Areas for the Winter
Toronto – 24 More Restaurants Close Since August
Irish Life & Permanent PLC – 11 Branches
Peterbilt Plant in Madison – 390 Lay offs
Lake County Boys Group Home
Old Navy Store in Wytheville
Update: Old Time Pottery – Holds Liquation Sales at 8 Locations
Wells Fargo to Close 122 Branches in California
Daytona Middle School Could Close Next Year
Famima in OC
Webster Correctional Institution Possibly Closing
Exelon Corp. to Close 4 Power Generating Units in Philadelphia
Blackthorne Antiques & Interiors
Northern Trust Golf Course ( International )
Boyer’s Food Markets in Shoemakersville
White’s Music Center in Tulare
Healthy Malden
American Sound Recording Studios
Three Lexington PNC Bank Branches
Lady’s Island Convenience Center
StarTek Closing Facility in Red River – 269 Layoffs
Update: Renier Music Store
Peachtree Center Athletic Club
Dickies factory in Hanover ( International )
Boston Connects
John Laffrey’s Steaks on the Hearth
Old Time Pottery closing Rockford Location
Vap’s Seed and Hardware in Downtown McCook
The Convent at Mount de Chantal
Progress Energy to close 11 Coal Burning Power Plants
Barnes & Noble near Lakeland Square Mall
Dow Jones & Co Closing Shenango Township Plant
Skills Inc.
Johnsons for Children in San Luis Obispo
Smooch – Kid Clothing Store
Camp Sha-Te-Muc Girl Scouts in Chatham
Arcandor ( International ) – 7 more Stores
Food Bonanza grocery store in Ottumwa – 50 Job Cuts Resulting
Shiso Modern Asian & Sushi Closing, Moving to New Location Next Year?
Baylor College of Medicine/Kelsey-Seybold Clinic Family Medicine Residency Program in 2011
B.Side Lounge in Downtown Boulder
Columbus Ohio – Plan to Close 9 Schools
Williamson Road Post Office Branch on List to Close
Holyoke Soldiers’ Home Closing
Marietta Brewing Company
Delta to Close Montreal and London Call Centers – Bring Some Jobs Back to US
The Ruby Room in Phoenix
Retailer Limetree
New York City OTC
Fairvue Club Properties – Chapter 11
Boston Blackies – Chapter 11
Palm Beach Finance Partners LP – Chapter 11
The Toledo Ice House
AmTrust Financial Corporation – Chapter 11
Michels and Co – Chapter 11
Canopy Financial Inc – Chapter 11
Starco Ventures Inc
Eco2 Plastics Inc – Chapter 11
Daily Grind Unwind Inc – Chapter 11
The Indiana Troopers Association Fraternal Group
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