1) Despite positive last quarters, both General Motors and Ford Motor company’s are concerned about the U.S. auto market taking a turn for the worse. Shares for the two automakers, as well as Fiat Chrysler, fell because of smaller figures for the quarter, although smaller than market analysis projected. There are also concerns of the overall impact from a slowing U.S. and international economies with the impact it would have on new car sales.
2) For the second day, the stock markets nose dived with the Dow losing more than 800 points these last two days. Fears of an economic recession cause the Dow to lose 490 points on Wednesday, with indications that manufacturing is slowing down, and even though manufacturing accounts for only 10% of the economy, investors see this as an indication that the economy is contracting soon with a possible recession in the near future.
3) With the markets in decline, there is a lot riding on the up coming job numbers this Friday. Fears of a coming recession could be reinforced with poor job numbers signaling that a recession is nearing. So far, there is little evidence of layoffs on the rise despite scattered reports that more companies are cutting jobs.
4) Stock market closings for – 2 OCT 19:
Dow 26,078.62 down 494.42 Nasdaq 7,785.25 down 123.44 S&P 500 2,887.61 down 52.64
1) Criticism continues to mount against the proposed ‘New Green Deal’, in particular the soaring cost it would entail. Although the plan has not been fleshed out enough to do accurate cost analysis, some objectives would need huge expenditures, just when the national debt has topped $22 trillion dollars, making the plan’s future doubtful. The recent massive failure of California’s high speed train and it’s cancellation is another stumbling block to the New Green Deal because it proposes a system of similar high speed trains to replace airliners.
2) The Ford Motor Company announced the recall of 1.5 million of their F150 pickups, which were manufactured from 2011 to 2013. Their six speed transmission has a software problem where it can suddenly down shift to first gear. This could cause loss of control and therefore crashes.
3) Fears are mounting over the $22 trillion dollar American public debt, which is mounting faster than the economy is growing, making it unsustainable. In addition to excess spending by the government, the growing numbers of ‘baby boomers’ retiring leaves not only increased spending obligations for the government, but less revenues coming in, while the younger people are making less monies and therefore paying in less thereby lowering revenues further.
4) 13 FEB 19 Stock market closings:
Dow 25,543.27 up 117.51 Nasdaq 7,420.38 up 5.76 S&P 500 2,753.03 up 8.30