The Markets February 2, 2011

MGM Resumes 401(k) Match

MGM Resorts International said it will immediately resume matching payments to eligible employees participating in the firm's 401(k) Savings Plan for 2011.
Reported by

The Las Vegas Sun newspaper is reporting that southern Nevada’s largest private employer will match all 2011 contributions, including those made since January 1, for eligible participants. They will receive a 50% match of up to 6% of eligible pay contributed to the plan, with a maximum match of $500 for 2011.   

“Eliminating the 401(k) match was one of the most painful decisions we made, but it was a necessary step for us to survive very difficult financial times. We are now emerging from that brutal economy and have prioritized the reinstatement of this important employee benefit. I encourage all of our eligible employees to take advantage of this valuable asset,” said Jim Murren, chairman and CEO. MGM was one of many companies that decided to stop their matching contributions in 2009 and 2010 due to the recession (see “More Companies Decide to Go “Match-less”“).  

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The company said it will review match levels as the company and the broader economy continues to strengthen.  

The news report said the company has approximately 52,000 employees in southern Nevada.
The Markets February 2, 2011

DJIA Recovery Among the Fastest Ever

The Dow Jones industrial average closed above 12,000 yesterday, the first time it has closed that high since June 19, 2008.
Reported by

That’s an 84% gain from March 9, 2009, when it hit a 12-year low of 6,547 – a passage of “just” 480 trading days.

According to the Associated Press, the Dow has had four other gains as large that were even faster, but you have to go back pretty far to find them:

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  • February 17, 1933, through July 18, 1933: Up 117% in 109 trading days.
  • July 8, 1932, through September 7, 1932: Up 94% in 51 trading days.
  • November 9, 1903, through March 9, 1905: Up 84% in 397 trading days.
  • March 25, 1898, through September 5, 1899: Up 85% in 431 trading days.

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