July 24, 2009

Dow back over 9,000:

The Dow Jones industrial average crossed back over the 9,000 mark pushed up by stock traders emboldened by a good U.S. housing report.

The DJIA closed Thursday at 9,069.29, the highest closing level since Nov. 5. The Dow dropped nearly 1,000 points Nov. 5-6 -- yes, the immediate aftermath of the U.S. general election -- and hadn't closed at more than 9,000 since January.

The index has been on the tear the last two weeks, increasing more than 900 points. Thursday's 190-point DJIA gain was fueled by a report that indicated existing home sales in June increased for the third consecutive month by a higher figure than traders expected.

The Nasdaq composite index was also up, posting a gain for the 12th consecutive session. That is its longest such streak since January 1992. The broader Standard and Poor's 500 is up to 976.29, also its highest level since the election.

The record DJIA close is 14,164.53 set Oct. 9, 2007. The index closed at 40.94 when it was first computed on May 26, 1896.

Minimum wage increase:

The minimum wage in the United States increased 70 cents to $7.25 an hour.

It is estimated about 2.8 million workers are directly affected by the mandate but the effect of the minimum wage is hotly contested by economists.

Those in support of the minimums claim the increase will spur the economy since more people will have more money to spend. The Economic Policy Institute told CNN the move is worth an additional $5.5 billion to the U.S. economy in the next year.

Opponents claim many employers can't afford the added payroll expense -- and the increases in taxes, etc., that come with it -- and so will cut workers' hours or the number of people they employ. They point to the job market trend since the minimum wage was increased from $5.15 to $5.85 an hour on July 24, 2007. The U.S. unemployment rate went from 4.5 percent at that time to the current 9.5 percent. Of course, most of those jobs weren't minimum-wage.

The change directly affects workers in 29 states since 21 states and the District of Columbia mandate higher minimum wages.

Money-laundering in New Jersey:

Three mayors, two state legislators and five rabbis in New Jersey were among 44 people arrested at the end of a two-year investigation into an alleged international money-laundering scheme.

The acting U.S. attorney involved in the case said the accused operated in an "ethics-free zone" where "corruption was a way of life."

Federal prosecutors allege more than $3 million was laundered in the last two years and perhaps tens of millions during the life of a pair of schemes. They also claim the operation involved a black market on human kidneys and counterfeit designer handbags.

The operations involve allegations of bribery and political corruption that led to the arrest of mayors from Hoboken, Ridgefield and Secaucus. Five rabbis were also taken into custody.

The federal complaint said one man for as many as 10 years had been paying people in foreign countries $10,000 to donate a kidney and then selling the organs for $160,000 each.

The investigation doesn't help the political reputation of New Jersey, where since 2001 more than 130 officials have been convicted or pleaded guilty to corruption charges.

'Cash for clunkers':

The federal "cash for clunkers program, offering up to $4,500 to get older less fuel-efficient cars off the road and people into car salesrooms, goes into effect Friday.

The government has set aside $1 billion for its Car Allowance Rebate System. The program lasts until Nov. 1 unless the $1 billion runs out before that.

The theory is that the slowing economy has led consumers to keep cars longer than they usually would, which has resulted in a drop from 17 million new car sales a year to about 9 million.

This incentive is hoped to increase sales at U.S. dealerships where consumers would buy vehicles that are more fuel efficient.

18th perfect game:

Chicago White Sox pitcher Mark Buehrle pitched the 18th perfect game in major league baseball history, with great defensive help.

Buehrle retired all 27 of the Tampa Bay Rays batters who were sent to bat Thursday in the first perfect game since Randy Johnson in 2004. The White Sox won the game 5-0.

The tradition on scorecards for no-hitters is to specially mark plays that are considered pivotal to keeping the feat alive, generally with a star. On scorecards Thursday, the biggest star was next to the entry for the first Tampa Bay batter of the ninth inning.

The Rays' Gabe Kapler sent a blast toward left-center field. Defensive replacement Dewayne Wise gave chase, leaped and pulled the ball back from over the top of the wall. He hit the fence, jarring the ball loose, but was able to grab it with his bare throwing hand to keep the game perfect.