Market Update

Market Commentary - Thu, Mar 05 - 9:55 AM ET

General Motors was dealt a serious blow today as auditors for the company said that Chapter 11 bankruptcy may be forthcoming if the car maker is unsuccessful in negotiating concessions from its creditors and the UAW. GM has until March 31 to obtain these concessions and demonstrate to the government that by restructuring their operations they can once again be a successful auto manufacturer. Shares of GM were down almost 92% from last year this time.

Weekly Jobless Claims fell by 31,000 to 639,000 claims while the four-week moving average for new claims increased to 641,750, its highest level in just over 26 years. Continuing Claims remained over the 5 million mark with the four-week moving average for those claims growing by 76,750 to 5.01 million, a record high reaching back to 1967.

Retailers reported that February sales were a little better than January as Wal-Mart's gains were much better than expected. Limited Brands, which operates Victoria's Secret and Bath and Body Works, posted a decline of 7% - analysts expected a drop of 7.1%. Stage Stores said same-store sales fell 8.6%, less than the -9.3% expected.

The volatility in the Equity markets continues today as stocks are trading lower after rising yesterday, which followed 5 straight days of losses. The meltdown left the major indices at levels not seen in more than a decade. The Dow Jones Industrial Average closed at 6,875.84. The S&P 500 settled at 712.87. The Dow's record high close was 14,164.53 achieved on October 9, 2007, while the S&P hit a record 1,565.15 on the same day.
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