Fears of terrorism have risen to the top of the list of worries for business leaders tracking the recovery. While the "jobless recovery" had been the top worry early this year, the recent terror alerts in New York and Washington have put terrorism back on the front burner. But the growth of the federal deficit and rising inflation are also alarming economists, who fear both could choke the recovery.
Stocks take a holiday: Weak trading volume leading into the Labor Day weekend covered up multitude of sins in the stock markets. Tech shares sank, stung by a weak earnings report from Intel Corp., taking indices lower. But the weak volume also dampened the effect of a healthier-than-expected jobs report released just before the weekend. For the week, 36 AdMarket stocks were up and 14 were down.
Agency and media stocks dominated the losers, while automakers rose, in spite of weak August sales totals. Reports that Time Warner could acquire Metro-Goldwyn-Mayer did nothing to help the troubled Time Warner, in spite of analysts' support. On the upside, Catalina Marketing Corp. got a boost when the direct marketer announced a $100 million stock buyback and its first-ever dividend.
Advertising Age and Bloomberg's AdMarket 50 index of 50 top publicly traded marketer, agency and media companies for the week ended Sept. 3, based on stock trading data supplied by Bloomberg financial news service. All comparisons are vs. closing prices Aug. 27. Full data available on Bloomberg terminals under index BAAX.