Stock markets down and volatile following attacks

Wall Street will look at the state of the U.S. economy this week. Last week, it became apparent that many jobs will be lost as a result of the terrorist attacks. Airlines have received a bail-out package from the government, but that will not put people back in the air. Hotel chains have been revealing less-than-stellar occupancy rates. Many restaurants are beginning to offer discounts. Cities are now pleading for tourists. In New York, plays are closing. \nInvestors will get a glimpse at the state of the consumer on Tuesday. Many economists have said strong consumer spending has been a key to the economy. Tuesday's consumer confidence figures could shed light on future consumer spending. \n"If the consumer throws in the towel, it's going to be well-nigh impossible to stay out of a recession," Steve East, managing director of economic and policy research at investment bank Friedman, Billings, Ramsey Group told the Wall Street Journal. "It looked like consumer confidence was sliding before the attack and the odds are that it's going to slide even further."\nLast week\nOn Friday, the Dow Jones Industrial Average lost 140.40 points, to close at 8,235.81. The Dow ended the week down 14.3 percent, experiencing its worst decline since July 21, 1933. The Nasdaq closed down 48 points, to 1,423. For the week, the Nasdaq lost 16 percent. The S&P 500 also lost ground on Friday, closing down 19 points to close at 966.\nStock News\nSaturday, President Bush signed a $15 billion aid package for the airlines. The aid contains $5 billion in immediate grants. The airline industry announced about 100,000 job cuts. Thursday, Delta said it will cut jobs, but did not announce specific numbers. \nFriday, General Electric CEO Jeff Immelt said the company still expects double-digit growth for 2001. The company has announced its profits will be reduced by four cents a share due to the terrorist attacks. According to Thomson Financial/First Call, analysts had been expecting earnings of $1.43 a share. \nGold has been rallying since the terrorist attacks. The precious metal has long been viewed as a safe haven in times of uncertainty. Stocks such as Newmont Mining Corp., Barrick Gold Corp., and Placer Dome Inc have all seen renewed interest in their companies. \nFinal Note\nIn the coming weeks, investors will have to deal with corporate profit warnings and layoff announcements. Wall Street realizes layoffs have a ripple effect. Those laid off have less money to spend. Less money to spend means less business for companies.