Closing Update: Stocks Bounce Off Session Lows But End Lower As Government Shutdown Continues


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Stocks finished off their worst levels of the session but continued their descent Thursday as the partial government shutdown moved into its third day. The Labor Department said first-time jobless claims edged slightly higher last week but still remain at pre-recession levels. Far more dire was a warning by Treasury Secretary Jack Lew that a default on U.S. debt could plunge the global economy into a recession worse than the 2008 financial crisis.

All 10 sectors in the S&P 500 finished in the red, led by declines for shares of utility and industrial companies. The Dow Industrial fell over 100, again falling under its 15,000 mark, while the S&P 500 is trading breached its 50-day moving average enroute to a 0.7% decline.

With Friday's report on non-farm payrolls on hold because the government shutdown, the Labor Department's report on initial jobless claims for the week ended Sept. 28 took on more prominence than usual. Claims rose to a smaller-than-expected 308,000 first-time claims on a seasonally adjusted basis, below the market consensus expecting a rise to 313,000 applications. The prior week's claims also were revised higher to 307,000.

Also out today was the Institute of Supply Managers non-manufacturing index for September, which fell to a 54.4 reading from a nearly eight-year high of 58.6 in August. The pace of hiring in the service-sector index may be cooling, however, with the employment sub-index slipping to a four-month low of 52.7 last month.

A mid-afternoon shooting incident outside the U.S. Capitol building attracted plenty of media attention but had little impact on share prices.

Crude oil for November delivery settled 79 cents lower at $103.29 while November natural gas fell 4 cents to $3.50 per 1 million BTU. December gold was down $3.60 to $1,317.10 an ounce while December silver fell 15 cents to $21.77 per ounce. December copper settled 5 cents lower at $3.27 per pound.

Here's where the markets stood at end-of-day:

Dow Jones Industrial Average down 136.66 (-0.90%) to 14,996.48

S&P 500 down 15.21 (-0.90%) to 1,678.66

Nasdaq Composite Index down 40.68 (-1.07%) to 3,774.34


Hang Seng Index up 1.00%

Shanghai China Composite up 0.68%

FTSE 100 Index up 0.18%


(-) OMER, Identifies six new class A orphan G protein-coupled receptors that have been linked to neurologic disorders, cardiovascular disease and oncology, paving the way for developing drugs targeting those receptors.

(-) GALE, Begins U.S. launch of its Abstral sublingual tablets to treat pain in patients with cancer and are tolerant to opioid drugs therapy.

(-) CAMP, Northland Capital raises its price target by $6 to $25 a share while maintaining an Outperform rating for the stock.


(-) TXI, Reports Q1 net income of $.01 per share on $233.1 million in net sales. Analysts were expecting EPS of $0.02 on $236 million in sales.

(-) CEVA Said it expects to report Q3 revenue of around $10 million, below its prior guidance forecasting $11.5 million to $12.5 million in quarter revenue. The Street is at $12.1 million.

(-) ZLCS, Completes 1-for-6 reverse stock split, effective at 12:01 a.m. ET this morning.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

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