Marketplace: Monday, August 2, 2004

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A look at today's markets (closing numbers)
DOW 39.45 (0.39%) ; NASDAQ 4.73 (0.25%) ; S&P 500 4.90 (0.44%)

Newscast On this 2nd day of August, a major test of the mettle of the markets and the U.S. financial system in general. Despite an unusually specific terror threat to five icons of American economic power - the World Bank, the IMF, the Prudential Building in Newark, the Citicorp Center and the New York Stock Exchange - it was mostly business as usual. Even here in Los Angeles, where there was no specific threat, officials distributed a memo warning financial institutions downtown to keep an eye on parking structures and to check that all security cameras are in good working order. These more generalized warnings went out to financial institutions all over the country. Though Nasdaq was not on the list of targets, security was high at its New York headquarters. But Nasdaq has two fully redundant systems in Connecticut and Maryland. As a fully electronic exchange, it is arguably less vulnerable to physical attacks than, say, the New York Stock Exchange - with what's called the open-outcry auction system. On the NYSE, most shares pass through human hands and has been that way for 200 years. Two economic reports overshadowed on this day of terror alerts - One from the Institute for Supply Management, showed another month of growth in the manufacturing sector - July was even stronger than June. But that was expected. Today's other stat comes from the Commerce Department. Construction spending fell last month -by three tenths of a percent. That was unexpected. It's the first drop since January. Listen to all newscast items

Features Oil, risk, and Saudi Arabia As expected, the terror warnings upset the oil market today. Oil hit a new high, trading at $44 a barrel at one point. The oil market tends to be extremely volatile to threats of terrorism. But there may be a greater - and more foreseeable - danger. And it could mean oil prices beyond what analysts could ever predict. Commentator: Bruce Stokes Related Story: Terror alert fuels oil prices Bu-Seki - DJ Krush Support Marketplace: Purchase this music from Public Radio MusicSource Some companies go public, and some go private Word today that one company wants to leave the stock exchange. This decision has nothing to do with terrorism or orange alerts. Today the firm that controls Cox Communications said it wants to take the country's fourth largest cable TV provider-- private-- for almost $8 billion. Cox Enterprises is offering $32 a share to buy up stock in Cox Communications that it doesn't already own. Reporter: Cheryl Glaser Related Story: Cox's Majority Owner Proposes $7.9 Billion Buyout Cheap Talk - Loose Ends Support Marketplace: Purchase this music from Public Radio MusicSource "Just how does that tobacco company still make money?" The nation's second largest tobacco company came out with second quarter earnings today. Despite declining sales, profits at RJ Reynolds more than doubled. RJR also completed its merger with the nation's third largest tobacco company, Brown and Williamson. But with tobacco under constant siege from lawsuits and regulatory changes, one may wonder how the newly-named Reynolds-American plans to keep the profits coming in. Reporter: Helen Palmer Related Story: RJR, now part of RAI, profits climb Something to Talk About - Badly Drawn Boy Support Marketplace: Purchase this music from Public Radio MusicSource The scrutiny over the Arab-American worker You may have missed this over the weekend. On Saturday, before the most recent terror threats were announced by the Department of Homeland Security, ABC News reported on a new Al-Qaida plan. Intelligence sources told ABC the plan is to move non-Arab terrorists across the Mexican border into the U.S. Still - on days like this one -it's Arab-Americans who figure they're most likely to come under increased scrutiny. And not just from the Feds. But from employers. Reporter: Adam Davidson Related Story: Is the U.S. Becoming a "Nation of Snitches" Leilet Hob -- Electric Arab Orchestra

Coming up on Marketplace... There's a new battle brewing in Paris