• GDP
• Economic growth was very poor in the fourth quarter, just 0.6% at an annualized pace. This was only about one-half of the consensus expectation. Over the past year, real GDP has increased 2.5%. That compares with the 4.9% growth in the third quarter. A fall in inventories and weaker growth in federal spending, exports and consumer spending were behind the slower growth. These factors were partly offset by weaker growth in imports and stronger growth in state and local government spending. The weakness is now spreading beyond the housing market. The economy likely contracted in December, and the risk of recession remains extremely high.

• Conference Board Consumer Confidence
• The Conference Board index of consumer confidence fell in January to 87.9 from an upwardly revised 90.6 in December (previously 88.6). The index remains fractionally above its November low. The decline entirely in the expectations component; the present situation component rose. Assessments of labor markets conditions improved modestly.

• FOMC II
• he Federal Open Market Committee cut the fed funds target rate by 50 basis points to 3%; this was on top of an emergency intermeeting rate cut of 75 basis points last week. The press statement discussed financial market stress, tight credit and a softening in labor markets. The FOMC also cut the discount rate 50 basis points to 3.5%. One member dissented, calling for no rate cut.

• New Home Sales (C25)
• Home sales took another beating at the end of last year, with Census reporting 604,000 annualized units sold in December, the weakest pace since the spring of 1993. This is a decline of 4.7% from a downwardly revised November number. The median price is down by 10.4% from one year ago and the months of inventory crept up to 9.6.

• House Price Index
• Both the 10-city and 20-city composite S&P/Case- Shiller house price indexes declined in November from October. The 10-city composite fell by 2.2% and the 20-city composite fell by 2.1%. The 10-city composite is down 8.4% over the past year, the largest year-over-year decline since the index began in 1988. The 20-city composite is down 7.7% over the past year. Prices fell in all 20 metro areas in November. House prices continue to fall, with no signs of stabilization.

• MBA Mortgage Applications Survey
• The market indices finished mixed again for the week ending January 25. The composite index finished at 1,054.9, an increase of 7.5% over the previous week. The purchase index finished at 362.0, down by 17.7% over last week's value. The refinance index finished at 5,103.6, an increase of 22.1% over last week's value. As in the previous week, refinancing of mortgages continues at a feverish pace while purchases continue to slip.

• Chain Store Sales
• Chain store sales fell again in the week ending January 26 according to the ICSC. Sales declined 1.2%, taking year-over-year growth down to 1.3%. The weakness forced the ICSC to again lower their projection for the month, which is turning out to be very disappointing for retailers.

• Oil and Gas Inventories
• Crude oil inventories rose by 3.6 million barrels for the week ending January 25 according to the Energy Information Administration, exceeding expectations of a 2.0 million barrel build. Distillate supplies fell by 1.5 million barrels, in line with expectations. Gasoline inventories rose by 3.6 million barrels, surpassing expectations of a 2.0 million barrel build. Refinery operating capacity fell sharply to 85% from 86.5%. This report is bearish.

Source: Economy.com 2008

• Jenny Craig
• Jenny Craig, Inc. trades as Jenny Craig at 567 locations nationwide and in Canada.
• The weight loss centers occupy spaces of 1,800 sq.ft. in power and strip centers.
• Growth opportunities are sought nationwide during the coming 18 months.
• Typical leases run five years.
• A vanilla shell is required.
• Preferred cotenants include drug and grocery stores, Target, Marshalls, T.J. Maxx and Michaels.
• Major competitors include LA Weight Loss and Weight Watchers.
• For more information, contact
  • Mark Schoffstall,
  • Jenny Craig, Inc.,
  • 5770 Fleet Street,
  • Carlsbad,
  • CA 92008;
  • Web site: www.jennycraig.com.