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Stomach-churning open on Wall Street

posted 19 Aug 2011, 09:11 by Mpelembe   [ updated 19 Aug 2011, 09:14 ]
Business Update: Dow drops 100 points at the open, Gold rallies to record above $1880, Bank of America cutting 3500 jobs; Super rich making money in market crisis.

USA-BUSINESS UPDATE - The stomach-churning turmoil continues on Wall Street. The Dow Industrials dropped 100 points within the first few minutes after the opening bell, and the S&P 500 and Nasdaq dropped about one percent.

That follows Thursday's steep drop over concern the U.S. may slip back into recession and European banks may face a Lehman type meltdown.

With little U.S. economic data on Friday, the U.S. markets are taking their cue from European markets which are near two-year lows.

More investors sought safety in gold pushing the precious metal to a record above $1,880 an ounce.

Adding to the market jitters -- Bank of America is cutting 3,500 jobs this quarter -- as the biggest U.S. bank struggles with $1 trillion worth of troubled loans.

Meantime, the super rich are making money in this crisis. Financial advisors to the world's richest people report some of their top clients

have made money by tapping into sophisticated investments out of reach of mainstream investors.

Carmen Roberts, Reuters.