Top 5 for 9/16/12-9/22/12

Crude Oil’s Quick Fall Leaves Trail of Queries by Jerry A. Dicolo and Carolyn Cui September, 18, 2012, Section 3, Page 4 www.wsj.com A plunge in crude-oil prices rippled through financial markets early this week leaving many consumers and investors confused. Oil prices dropped over $3 in less than a minute at the end of the trading day on Monday, just as trading volume spiked. The drop dragged down the prices of gold, copper, and even the euro. This dramatic shift sparked discussion of an erroneous trade due to technological glitches. A shift in oil prices might bring down prices of gasoline for consumers as long as there is a high demand.

Alpha Natural to Shut Coal Mines, Shed 9.2% of Jobs by Kris Maher, September 19, 2012, Section 2, Page 3 www.wsj.com Alpha Natural Resources Inc., the biggest producer in Appalachia, will cut nearly 10% of its workforce and shut down mines across West Virginia, Virginia and Pennsylvania in an attempt to withstand the worst industry downturn in decades. They will now focus on expanding their metallurgical coal operations since there is more demand for this market. Cutting down the workforce will increase the employment rate and will cause those employees to become more cautious in their spending which will keep the economy from growing.

Crude Tumbles Below $92 by David Bird, September 20, 2012, Section 3, Page 4 www.wsj.com Crude-oil prices fell 3.5% due to a sharp increase in oil inventories and a continued listless demand. Crude oil for October delivery settled at $91.98 a barrel, the biggest drop in a single day since July 23 which put prices at their lowest level since August 3. Saudi Arabia, the world’s biggest oil exporter, said it is hoping to see lower prices and will maintain high output. Unfortunately, U.S. oil demand has slipped to its lowest levels since June 1. These lower demands mirror the weak economy and high fuel prices.  

Gold Miners Are Over a Barrel by Liam Denning, September 20, 2012, Section 3, page 12 www.wsj.com Gold mining industry is looking into changing how it operates because of the lack of gold deposits found and how difficult they are to develop. Liam Denning of The Wall Street Journal says miners “have literally dug themselves into a hole.” Denning’s comment infers gold companies are paying their employees to basically dig holes, which does not produce a profit. A merger among mining companies might be a good way to enhance the metal mining industry as a whole by mitigating cost inflation and boosting margins. 

DOW Ends Lower in Late Selloff by Matt Jarzemsky and Steven Russolillio, September 22, 2012, Section 2, Page 5 www.wsj.com Blue chips suffered their first weekly loss in three weeks after a late market selloff. The Dow Jones Industrial Average slipped 0.1% minutes before the closing bell. Investors are concerned that this rally won’t be able to uphold itself without help of the European Central Bank and the Federal Reserve. The Dow Jones Transportation Average slumped to its largest weekly decline since November 2011 to 5.9%. This still shows how risky it is to be investing in these markets and that consumers are still cautious about spending.