Political developments in Washington continued to dominate the
day's trading. In the morning, Republican Representative Paul Ryan
stated that the Senate's deal was not sufficient and that the House
would formulate a new plan. Later in the afternoon, the senators
said that negotiations had been halted to ascertain the structure
of the deal from the House. Markets generally met these news
An ICSC survey of US consumers found that 40% have reduced -- or
would reduce -- their spending due to the government shutdown. A
German survey of financial market experts saw European economic
expectations improving even though feelings on the current
situation were slightly worse than they were last month.
US Treasuries were about unchanged from yesterday's close.
Yesterday, because the bond market was closed for Columbus Day,
10-year Treasury futures fell roughly the equivalent of a 3.5 basis
point rise in yields. Interest-rate-sensitive utility stocks were
the worst performers today. All ten sectors of the
(INDEXSP:.INX) declined; the number of declining stocks outnumbered
the number of advancing stocks by a 4:1 margin.
Before the market open,
) announced a 32 million share buyback plan, which is about 10% of
the company's outstanding shares. As of yesterday's close at
$115.37, the deal will total $3.7 billion. In other news, it was
reported that private equity giant Cerberus is conducting
additional due diligence in order to purchase the entire company.
In the pre-market,
Johnson & Johnson
) beat earnings expectations.
) all missed earnings expectations. After the market closed, tech
(YHOO) both beat earnings.
Tomorrow's Financial Outlook
The private NAHB housing market survey of builder sentiment for
October will be released tomorrow morning. Economists estimate that
builder sentiment will decline to 57 from 58 last month on a
downtrend in new building permits. The Fed will release its Beige
Book of economic anecdotes from mid-August until early October.
In global market-moving news, the UK will release its September
Earnings will be very busy tomorrow with 24 major US companies
reporting. Notable reports include
Bank of America