Seven Things You Should Know
December 4th 2009
1. Second Worst Decade For Stocks: Since 1900, the Dow Jones Industrial Average has declined in price (not total returns) in just two decades — the 1930s and the 2000s. The Dow is currently down 9.2% since the end of 1999. In the 1930s the index fell 39.5%. The best decade was the 1990s when the index rose 317.6%. (source: Bespoke Investment Group)
2. First Ever Losing Decade for S&P 500: “Absent a 12.14% December return this will be first negative total return decade for the S&P 500,” S&P’s senior index analyst Howard Silverblatt says. The S&P has never, he adds, had a 12% gain in the month of December. (source: Dow Jones Market Talk)
3. Upside Jobs Surprise: In a totally unexpected move, nonfarm payrolls fell by just 11,000 last month, from a downwardly revised 111,000 drop seen in October. It was the best showing since December 2007, when payrolls rose by 120,000. Economists had expected a payroll decrease of 125,000. The unemployment rate fell to 10.0% from 10.2%. (source: WSJ)
4. Sentiment is Poor: More than 1 in 3 Americans (36%) that were surveyed in late October 2009 believe their personal economic situation has deteriorated in the last 12 months. (source: SRBI Public Affairs)
5. However: Nearly half of Americans (46%) that were surveyed in October 2009 anticipate that they will be better off financially in 2010 than they were in 2009. (source: Money)
6. Earnings: Next week, we’ll see reports from Kroger, Ciena and Costco.
7. Econ Calendar: Next week, we get November Retail Sales and October Business Inventories.
Have a great weekend!