This Week In Financial News 8/28: Stocks, Dow, More Inflation?

It was truly a historic week as the esteemed Dow Jones Industrial Average went through a major revamping and the Federal Reserve announced a new monetary policy. The coronavirus spread continued at a somewhat slower pace as new treatments and tests were unveiled. The economic news was mostly horrible and the stock market soared to one new high after another. Let me catch you up on the events of the week and tell you about an all in one app to simplify your personal financial life. I’m Jordan Goodman, America’s Money Answers Man and this is the Money Answers Week in Review.

The Dow Jones Industrial Average which most people think is the chief indicator of stock market moves, doesn’t get changed very often.   But this week Exxon Mobil, Pfizer and Raytheon were thrown out of the Dow. They were replaced by Saleforces.com, Amgen and Honeywell. These changes will make the Dow Jones Average go much higher than it would have otherwise.

Federal Reserve chairman Jerome Powell made a milestone speech announcing that the Fed is abandoning its policy of raising interest rates pre-emptively to head off inflation.  The Fed will now be willing to tolerate more inflation over its 2% target and emphasize boosting job creation instead. This move will make stocks more attractive than bonds because higher inflation tends to be good for stocks  and bad for bonds. This shift in Fed policy is one reason the stock market surged to new all time highs on the NASDAQ and S&P 500.

If you find it difficult to manage your personal finances in these turbulent times, take a look at my affiliate Stash Invest’s app. It combines investing, banking, saving, and learning in one seamless experience. It also provides a debit card that earns you shares of stock as you spend on it.

Stash Invest: https://cutt.ly/stashinvest

Coronavirus continues to run rampant across America, as there were over 41,000 new cases a day, 5.8 million total cases and over 179,000 deaths. But progress is being made on treating the virus. Abbott Labs got an emergency use authorization to distribute a rapid response antigen test kit that has 97% accuracy. The FDA also approved a convalescent plasma therapy to treat severe coronavirus cases.

Most economic numbers were dismal. The GDP fell 31.7% in the second quarter, the deepest drop in the 70 years that this number has been released. Consumer spending plummeted 34% and capital spending tumbled 26%. Unemployment claims remained at about a million. Before the pandemic hit, it was about 200,000 a week. Consumer confidence dropped to its lowest level since 2014. American Airlines says it is going to lay off 19,000 workers on October 1 if it doesn’t get more bailout money from Uncle Sam.

Looking for an Answer?

Resource Center

Featured on

  • "On behalf of all of us at Organon, I want to thank you for participating in the Experts in Reproductive Medicine Meeting. Your financial planning sessions were so informative. We received wonderful feedback and a great interest in learning more about business finance as well. I know that there were quite a few physicians you were able to spend time with throughout the weekend. Many of them conveyed their appreciation for all of the help and advice you extended them. We are so appreciative and cannot thank you enough for such a great job!"

    Cathy R. Termini

    R.PH Organon Inc.

  • "Where do I begin? You were excellent at the OSC Power Meeting XXIV recently held in St. Pete Beach, Florida. The speaker evaluations proved that you were a huge hit with our members. QSC members are much better off, both personally and professionally, for having attended your program. I might add that we have never had as many requests for the recording of a presentation as we have with yours. Don’t ever hesitate to have any prospective clients contact me as a reference. Thank you again for such a positive experience."

    Charles E. Wallace, III

    Executive Director/Quality Service Contractors

  • "There is always an exception to every rule and your recent seminar to our JWT employees provided that. Generally, I believe you get what you pay for and since we didn’t pay you anything for your recent talk one might not expect the reaction we got. Instead, I have been besieged with compliments about arranging for you to speak. Our employees felt more informed and financially empowered as a result of your discussion with them. I enjoyed meeting you and will be pleased to know the face behind the column that I read in every issue of Money Magazine."

    Jeff White

    Executive VP/General Manager/J. Walter Thompson

  • "On behalf of the Water Systems Council I would like to thank you for speaking at our Spring Meeting in Washington, DC on March 3rd. Your presentation was very well received by our members. The information in your presentation and additional reference materials you provided were both fascinating and timely. We hope you enjoyed meeting our members. Thank you again for taking the time to speak at our meeting."

    Kathleen M. Stanley

    Executive Director/Water Systems Council

  • "The crowd was small, but the quality of your presentation was superb, addressing precisely the areas which I had hoped you would cover. It obviously had a high-interest impact upon the participants. And – it is the kind of expert contribution which makes for a successful meeting. Thank you immensely! And – thank you again for joining us at the Club!"

    Lewis O. Kerwood

    National Society for Real Estate Finance

  • "On behalf of the Take Charge America Institute, the University of Arizona Students in Free Enterprise and their Credit Wise Cats team, I would like to extend my appreciation for your wonderful keynote address last week. Our three-day symposium, “Money Talks, Think you Know? Think Again!” was a great success, largely due to the relevance of your opening statements."

    Marica Klipsch

    Education Coordinator/University of Arizona

  • "Your presentation certainly contributed to the overall success of the event. I sat in on your presentation, “Earning Fast Profits in Hard Times”, and found your presentation to be insightful, educational and thought-provoking and the topic was certainly timely. My opinion of your presentation was confirmed by feedback I received from event attendees. It was a pleasure to have you at our event and it is without reservation that I would recommend your presentation skills to anyone interested in having you speak. I look forward to working with you again."

    Michael P. Scott

    VP/Director of Business Development Pensco Trust Company

  • "... Here are some statistics we received from the attendees: 93.38% agreed that you presented in a clear, organized, engaging manner. 94.84% agreed that the information you presented was valuable to them as business owners. 83.01% agreed that they would travel to attend a 1 or 2 day course presented by you. 83.77% agreed that they would like to see your topics brought to their local study club. 87.25% agreed that they would like to see your topics offered at a future Symposia. Thanks again for all of your awesome contributions!"

    Shaida Ghomi

    Seattle Study Club For Dentists

  • "Thank you so much for coming out last week to Las Vegas and speaking to our participants. I heard so many great things from people that attended your course about how useful the information was."

    Sheryl Dare

    Meeting Planner for Genentech Corporation

  • "... I appreciate your efforts to present meaningful content to make a successful event. Your professionalism, delivery and ability to engage with the attendees were exceptional. I know there were many attendees in the room including me who left with new ideas and insights..."

    Wendy Mathea

    Supplier Diversity Officer/Amgen

Have a question?