Daily Market Commentary for October 05, 2011
According to the American Bankers Association, the delinquency rates for consumer loans rose in Q2 as employment weakness persisted with higher gas and food prices putting more pressure on family budgets. (read more at Millennium-Traders.Com)http://www.millennium-traders.com/news/newscommentary.aspx
Among eight types of closed-end loans, there were increased delinquencies in seven categories with decreased delinquencies as one:
Home-equity-loan delinquencies rose to 4.38% in Q2 from 4.12% in Q1; Mobile-home-loan delinquencies fell to 3.62% from 3.74%; Personal-loan delinquencies rose to 3.12% from 3.05%;
Indirect-auto-loan delinquencies rose to 2.89% from 2.72%; Marine-loan delinquencies rose to 1.83% from 1.76%; RV-loan delinquencies rose to 1.42% from 1.26%; Direct-auto-loan delinquencies rose to 1.23% from 1.20%; Property-improvement-loan delinquencies rose to 1.07% from 1.02%.
Among three types of open-end loans, there were increased delinquencies in two categories with decreased delinquencies in one:
Bank-card delinquencies fell to 3.22% from 3.40%; Home-equity-lines-of-credit delinquencies rose to 1.91% from 1.80%; Non-card-revolving-loan delinquencies rose to 1.11% from 0.96%.
According to the ADP employment report released this morning, private-sector payrolls increased 91,000 in September, led by the service-producing sector and small businesses. August level was revised down to 89,000 from a prior estimate of 91,000. Markets look to ADP's report on private-sector payrolls to provide some guidance on the U.S. Labor Department's jobs estimate, which will be released Friday and includes information on both private and publicsector payrolls.
Institute for Supply Management reported its September services index decelerated slightly to 53.0% from 53.3% during August. Any reading over 50% indicates expanding activity. New-orders index increased by 3.7 percentage points to 56.5% but, the employment index decreased 2.9 percentage points to 48.7% which indicates contraction in employment after 12 consecutive months of growth.
General Motors Company (NYSE: GM) reported today they are moving into the car sharing business through an alliance with RelayRides, a peer-to-peer service for auto owners looking to rent out their vehicles. Apparently the program, will launch in 2012 and will make it easier for those without a vehicle to access temporary, affordable transportation with terms of the deal not yet disclosed.
Senate Democratic leaders proposed a 5% surtax on income of $1 million or more to pay for President Barack Obamaâ€™s jobs bill today, casting aside revenue-raising proposals floated by the White House and setting up a clash with vehemently anti-tax Republicans. â€œThese tough economic times call for sacrifice â€” shared sacrifice,â€ said Sen. Charles Schumer, a New York Democrat. Schumer added that the White House is â€œfine with the ideaâ€ of paying for Obamaâ€™s jobs bill through higher taxes on millionaires. Senate Democratic Leader Harry Reid said the new surtax would raise $445 billion. Among other favorable items, the White House has called for paying for Obamaâ€™s plan by limiting itemized deductions on wealthy Americans and by scrapping tax breaks for hedge-fund managers. Reid additionally said that limiting tax increases to the wealthiest Americans should win bipartisan support however, Senate Republicans are almost certain to try to block the Democratsâ€™ bid for the new surtax. Reid said he plans to bring Obamaâ€™s jobs plan which consists of a mixture of infrastructure spending, targeted tax cuts and job-training programs, to the floor for first votes in the next few days. Obama has faced a difficult time gaining support from some in his own party for the bill and removing contentious revenue-raisers opposed by some Democrats may help it move through the Democratic-controlled Senate. House Republicans for their part, have said that the jobs package canâ€™t make it through their chamber as a single bill.
Bank of America website under attack again? BofA banking site was experiencing access issues again today, the fifth day out of the past six where customers have been greeted at the website by a warning of slowness. Since Friday BofA has said when the problems began, the site is not under attack and that the messages customers are getting are a "proactive" attempt to inform them the site may be slow. The bank has said it is looking to divert some traffic from the site during peak hours but, has not divulged why it needs fewer visitors at those times. The bank has come under fire recently for a decision announced last week to charge some customers a $5 monthly fee for debit-card purchases.
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