Where Bank of America goes, others do not follow. The bank’s decision to charge customers $5 a month for using their debit cards to make purchases was widely criticized. Now, after months of consumer testing, JP Morgan Chase has decided not to follow B of A. The Wall Street Journal says other big banks have announced they won’t impose similar charges.
Like Bank of America, Netflix managed to anger many customers, with changes in the price structure for renting and streaming DVDs. Now one of its competitors is also charging more. Red Box is hiking its daily DVD rental fees from $1 to $1.20. Redbox prices will remain unchanged for Blu-ray discs at $1.50 per day and video games at $2 per day. Red Box has 34,000 rental kiosks.
October could be the best single-month rally for stocks in 25 years. The Dow Jones index is up nearly 12 percent this month. Averages surged about 3 percent Thursday in response to the debt deal in Europe and somewhat stronger U.S. 3rd quarter economic growth.
Many economists are warning the positive reaction to Europe’s attempt to tame the sovereign debt crisis could be short lived. The fine print on the agreement to boost the bailout fund and rescue Greece from a messy debt default is highly complex. At their meeting, Eurozone leaders gave few details of exactly how the plan will work. This morning Italy paid record yields to sell a new batch of 10-year bonds.