GM Scrambles to Adjust After Second Quarter Loss

Due to the increase in gasoline prices, General Motors Corporation (GM) has an overwhelming inventory of unsold trucks and SUVs in stock. GM is scrambling to roll out smaller passenger cars and hybrids. Though the company has several new models in the pipeline, it will take several years before they reach dealerships. GM shares have dropped to levels not seen since 1954. The struggling Detroit automobile giant is currently absorbing a second-quarter loss of $15.5 billion or $27.33 a share.

Despite sales declines in the U.S. market, GM has managed to grow international sales by 10% through the first half of the year. However, that has not been enough to continue to top Toyota Motor Corporation who is now the new global leader. General Motors Corp. (GM) closed this week at $10.23. Toyota Motor Corp. (TM) closed this week at $85.08.

Sprint, AT&T and Verizon Customers to be Credited

Sprint Nextel Corporation, AT&T, Inc. and Verizon Communication, Inc. have been sued through class action lawsuits in California. The lawsuits state that early termination charges violate state law. The three largest mobile-phone companies in the U.S. were charging fees for ending contracts, which represented damages for lost business. The U.S. Federal Communications Commission (FCC) is also reviewing mobile-phone cancellation fees and is considering new rules for wireless carriers.

Sprint, the third largest U.S. based mobile-phone company, was ordered by a California judge to pay customers $73 million in a lawsuit. AT&T, the biggest U.S. phone company, is still awaiting its separate trial results for the amount they will issue their customers. On July 8, Verizon Wireless already agreed to pay $21 million to resolve its part of the case. Sprint Nextel Corp. (S) closed this week at $8.09. AT&T, Inc. (ATT) closed this week at $25.17. Verizon Communication, Inc. (VZ) closed this week at $34.00.

Monster Continues to Grow

Monster Worldwide, Inc., the premier global online employment solution for more than a decade, provides personalized career advice to consumers globally. Monster recently purchased the Trovix's company which will enable Monster to provide employers and job seekers with even more innovative recruiting search capabilities for highly relevant and targeted matches.

Monster released its second-quarter report earlier this week showing total revenue growth increased by 9% to $354 million or $.25 cents per share, from $324 or $.21 cents per share in the comparable quarter of 2007. In spite of the economy struggling, Monster has been able to increase revenues by continuing to provide cutting edge technology for its customers. Monster Worldwide, Inc. (MNST) closed this week $17.96.

The Dow started the week at 11,370 and closed at 11,326. The NASDAQ began the week at 2,310 and finished at 2,310. The S&P 500 started at 1,257 and ended at 1,260.

Treasurys Increase Due to Unemployment Rates

Treasurys received a boost after a report showed slower economic growth than expected during the second-quarter. The unemployment rate has risen 0.7% in the past three months, matching the fastest increase in the past 26 years. Since December, 463,000 jobs have been lost, the strongest signal yet that the economy is in a recession. The weak jobs report sparked more talk about a second stimulus package from Congress.

In its July survey of business establishments, the government found that private-sector employment fell by 76,000. Goods-producing industries cut 46,000 jobs, while services cut 30,000. Manufacturing firms lost 35,000 workers, and construction firms shed 22,000 jobs.

The 10-year Treasury note began the week at 4.08% and finished at 3.95%. The 30-year Treasury bond began at 4.66% and finished at 4.57%.

Inflation Concerns Ease with Mortgage Rates

In Freddie Mac's Primary Mortgage Market Survey, long and short-term rates decreased this week by 0.6%. The 30-year fixed-rate mortgage (FRM) declined to 6.52%, down 0.11% compared to last week. The 15-year FRM also decreased to 6.07%, down compared to last week at 6.18%.

Frank Nothaft, Freddie Mac Vice President and Chief Economist, stated, "Mortgage rates moved lower this week as a drop in commodity prices eased market concerns over inflation pressures. For instance, the Department of Energy reported that gasoline prices were the lowest since the end of May, and oil prices were at levels not seen since early May.

Meanwhile, there were mixed reports this week on the state of the U.S. housing market. While the months of supply for existing single-family homes for sale rose to 11 months in June, the supply of new homes fell for the second consecutive month to 7 months. Further, the seasonally-adjusted U.S. homeownership rose slightly from 68% in the first quarter of this year to 68.1% in the second, yet still below the 68.3% set in the second quarter of 2007."

The 30-year loan rate started at 6.33% and finished at 6.26%. The 15-year loan began at 5.86% and finished at 5.84%. The money market fund began at 2.38% and finished at 2.46%. The $10,000 money market fund started at 2.56% and finished at 2.68%. The 1-year CD started at 3.47% and finished at 3.58%.