ABC News Weekly Consumer Comfort Index

CPI (YoY)

PPI (YoY)

Initial Jobless Claims

Continuing Jobless Claims

1.20.2009 QINSIGHT

CPI fell .7% in December (mostly due to energy prices)

CPI rose .1% for 2008.Core CPI was flat in December, rose 1.8% in

2008. (figures suggest that deflation is not yet a problem.

Industrial production fell 2% in December and 11.5% for the 4th quarter (capital utilization fell to 73.6% in dec, down from 75.2% in nov)

1.20.2009 QINSIGHT

Believes that Obama’s long-term goals are likely to change rapidly. Stimulas plan is likely to include provisions to cut some taxes, save or create 3mil jobs, extend unemployment benefits, invest in infrastructure.

Likely that the spending may not be felt until late 2009 or 2010.

1.20.2009 QINSIGHT

The S&P 500 index declined 4.52% for the week and it is down 5.88% for January 2009 so far.

The S&P 500 index declined 4.52% for the week and it is down 5.88% for January 2009 so far. The Health Care sector (-0.05% for the week) was the best-performing sector and the Financials sector (-13.49% for the week) was the worst-performing sector for the week.

1.20.2009 QINSIGHT

JPMorgan Chase (JPM) reported an operating loss of $.28 per share that was offset by a one-time $1.3 billion gain in the assets acquired from Washington Mutual.

Bank of America (BAC) reported a loss of $1.7986 billion in the 4th quarter of 2008 and a profit of $4 billion for all of 2008. However, those figures for the 4th quarter of 2008 do not include Merrill Lynch which was acquired by BAC as of January 2009.

1.20.2009 QINSIGHT

Merrill Lynch posted a $15.3 billion loss for the 4th quarter of 2008. The losses at Merrill Lynch have ballooned so fast that BAC requested and received an additional $20 billion loan from the US Treasury.

In the UK, the UK government has announced that it will increase its investment in the Royal Bank of Scotland (RBS) to 70% of its outstanding equity and will guarantee additional billions of pounds in bank debt. It is clear that the major banks are not past the worst of this financial crisis yet.

1.20.2009 QINSIGHT

Phase: PLUNGE