Which companies were kicked off the Dow? What company is facing layoffs? Should you trade you phone in at Wal-Mart? And how fuel efficient is your car?
Alcoa, HP and Bank of America dropped from Dow
The Dow Jones Indices announced Tuesday that it is dropping Alcoa, Hewlett-Packard and Bank of America from the Dow Jones Industrial Average. USA Today reports that Goldman Sachs, Visa and Nike will be added to replace these companies. The changes were based on the low stock prices of the companies deleted as well as a desire to diversify various sectors.
China industrial output rises 10.4 percent
Bloomberg is reporting that China’s industrial output grew at the fastest pace in 17 months in August. Factory production rose 10.4 percent from a year earlier, according to China’s National Bureau of Statistics. China’s liquidity and credit squeeze also appears to have ended. The government used measures from tax cuts towards extra spending on railways to defend its 7.5 percent expansion goals. Analysts predicted a 9.9 percent increase.
Wal-mart to launch smartphone trade-ins
Wal-mart plans to launch a smartphone trade-in program that will allow consumers to upgrade more easily to a new phone. The Associated Press indicates that consumers will receive a credit from $50 to $300 when they trade in their working undamaged phone. The credit can be used toward the purchase of a new phone, with over 100 devices to choose from. It is estimated that an Apple iPhone 5 will receive a $300 credit while a Samsung Galaxy SIII will receive a $52 credit. The program will start on September 21.
Bank of America cuts 2100 jobs
Bank of America is planning to close 16 mortgage offices because higher interest rates have reduced the demand for home loans. CNBC reports that 1500 of those affected helped process home loans and 400 worked in a Cleveland based call center. Two hundred dealt with overdue mortgages. Offices in California, Virginia, Texas and Ohio are affected.
McDonalds sales are up
McDonald’s reported a better-than-expected 1.9 percent increase in global sales in August, according to CNBC. Experts expected a 0.30 percent increase. Same-store sales in Europe rose 3.3 percent in August, helped by the introduction of blended ice beverages and higher priced items in the UK and Russia.
Fuel efficiency hits six year high
A University of Michigan study finds that the average fuel economy of new vehicles sold in the US hit a new high of 24.9 miles per gallon in August. The New York Times reports that the results indicate that automakers are producing more fuel-efficient models and consumers are continuing a trend of buying vehicles that use less gasoline. Overall, fuel efficiency has improved 4.8 miles per gallon within the last six years.
Catherine S. McBreen is President of Millionaire Corner. McBreen plans and develops content for Millionaire Corner. Catherine balances editorial content to meet the informational needs of both new and seasoned investors. She designs special monthly surveys on topical issues affecting the economic environment.
McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law. She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.
Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences. She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth. Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.
McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)
Catherine is the mother of four and is involved in many school and community events.