Dow up for ten straight days
The Dow Jones Industrial Average has broken another record, according to the Associated Press, by rising for ten straight days in a row. The last time that the market was up for ten straight days was in 1996. The Dow closed up 83 points on Thursday to end at 14, 539. Both Asian and European markets are mixed on Friday.
Obama’s Energy Plan Ignores Keystone Pipeline
President Obama unveiled his “blueprint for a clean and secure energy future” but ignored the Keystone Pipeline XL, according to the Financial Times. Republicans and others have been awaiting approval of the pipeline despite the fact that it is a traditional energy source because of the number of jobs it will create and its impact on energy prices. Obama, however, is championing alternative energy sources despite the embarrassments, such as Solyndra, that occurred in his first term. His new proposal creates an “Energy Security Trust” to be funded by development of oil and gas produced on the Outer Continental Shelf. He also has set a goal to cut imports in half by the end of the decade.
Fed expresses concern over JP Morgan and Goldman Sachs capital plans
The Federal Reserve cited weaknesses in capital planning that requires “immediate attention” for both JP Morgan Chase and Goldman Sachs on Thursday. According to the Wall Street Journal, the Fed didn’t reject the two banks plans to distribute capital, but both received conditional approval and are required to resubmit their plans to the central bank later this year. Overall, 14 of the 18 largest banks received approval to distribute capital to shareholders this year as part of the second step in the Fed’s annual stress test. Two banks, Ally Financial and BB&T had their plans rejected.
Hostess sells some brands to Little Debbie
Hostess has picked McKee Foods, the maker of Little Debbie cakes, as the buyer for Drake’s cakes after nobody else stepped forward with a $27.5 million bid. McKee will also get Devil Dogs and Yankee Doodles. McKee did not say when the treats will return to the grocery store shelves. According to USA Today, Metropoulus and Company and Apollo Global Management, who bought Twinkies, Ding Dongs and HoHos, promise to return the cakes to the stores by summer. Metropoulus owns Pabst beer and Apollo owns Carl’s Jr. and Hardees.
Senate panel accuses JPMorgan of lying over $6 billion loss
The Financial Times is reporting that a Senate panel, chaired by John McCain, said that JPMorgan “misled investors” before “lying to investors”. The comments came as the Senate panel delivered a 300 page report of bipartisan findings regarding the “London Whale” scandal. Senator McCain accused the bank of lying when it told investigators that it had been fully transparent. At a hearing on Friday, the panel will attempt to force JP Morgan into admitting that the trades that soured were designed to increase profits rather than hedge exposure. Many comments in the report infer that JPMorgan is “too big to manage”.
Warren Buffett gets a pay cut
Warren Buffett’s total compensation declined 14 percent last year to $423,923 because Berkshire Hathaway spent less on his security but his salary remained unchanged at $100,000. According to USA Today, Buffett’s salary has remained the same for 25 years because most of his wealth comes from investments.
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.