Both the Dow Jones industrial average and Nasdaq composite index quickly recovered from sharp opening losses, and showed little reaction to the launching of a second day of strikes. The dollar was slightly weaker against major currencies, and crude oil futures ended little changed after an initial conflict-related jump overseas. Among U.S. stocks, airlines, retailers and banks were among the hardest-hit sectors. With Bush trying to ease fears of terrorist reprisals for the U.S. strikes, financial analysts said that consumer, investor and business confidence are key to propping up the economy and stock prices. In particular, consumer confidence is vital because spending by individuals accounts for about two-thirds of U.S. economic activity, and had played a sizable role in keeping the economy out of recession.
Retail is a good, if anecdotal, barometer of consumer confidence.
Throngs of shoppers along North Michigan Avenue on Monday appeared undisturbed the U.S. military action in Afghanistan. Unlike the first few days after the Sept. 11 terrorist attack, shoppers actually bought things. It's just been very busy. Likewise, Nordstrom saw sales at its suburban stores spike Monday. Things are starting to look up a little bit.