The week that was for 08/14/11
Share with others:
... a roller coaster, baby baby. Down on Monday. Up on Tuesday (but not before cratering midday Tuesday at 10,627.34). Down again on Wednesday to 10,719.94. Up again on Thursday. And up once more on Friday to close at 11,269.02, ending one of the wildest weeks in recent Dow Jones Industrial Average history. And despite all the gyrations, the Dow closed on Friday not far from where it opened on Monday, at 11,444.61.
"The fundamentals among large U.S. companies are the best I've seen in years -- probably decades."
-- Paul Brahim, of BPU Investment Management, Downtown, trying to explain that while Wall Street investors are panicky, American companies themselves are actually in pretty good shape.
But it's hard to miss the connection between the Wall Street roller coaster, the debt limit wrangling and the fact that Consumer Reports' August index on consumer sentiment registered its sharpest drop in two years, plunging to the lowest level since December 2009. The magazine's Consumer Sentiment Index dropped to 43.4, down from 48.5 in July -- a measurement below 50 means more people are feeling worse about their financial situation rather than better.
... it's probably on the downswing at Bank of New York Mellon, which announced Wednesday that it planned to cut about 1,500 jobs, or 3 percent of the company's global workforce of 48,900. About 7,700 bank employees work in the Pittsburgh region -- how many jobs might be lost here isn't yet known.
Things are probably looking up, however, if you've been hoarding gold. On Tuesday, for the first time in three years, gold was more expensive than platinum, peaking at $1,782.50 an ounce before closing at $1,737. Platinum ended the day at $1,757. People invest in gold in times of economic or political uncertainty -- and last week qualifies on both counts.
But the week ended lower for gold, as some investors cashed in the early week's big gains, while others exited precious metals because the stock market had stabilized, thanks to a better-than-expected retail report.
... check out Steve Twedt's account of the debt issues -- and the prospects of bankruptcy -- facing West Penn Allegheny Health System as it moves ahead with its partnership with Highmark Inc.
First Published August 14, 2011 12:00 am
