7/30/09

Initial jobless claims rose for the second week in a row, leading to increased skepticism among consumers that the economic slowdown is moderating. Despite rising unemployment, economists claim the worst of the job cuts has already passed. A round of new hiring will be the first sign that the economic slowdown has leveled off.

Automobile Products & Accessories

In an effort to save, Americans are holding onto their current automobiles instead of purchasing new ones. As a result, there is an increased demand for automobile products & accessories to maintain aging automobiles. On the other hand, tax breaks for new car purchases given by the Obama administration should decrease industry demand in the short run.  Middle market firms with cash on hand will look to pursue acquisitions while valuations are low in order to diversify their product mix.