The US began its fourth day without the functions of most of the
Federal government while Congress continued to argue over an
emergency spending bill.
President Obama canceled a trip to Indonesia and Brunei due to
the shutdown, and several thousand government workers have been
forced to take unpaid leave.
With the more significant battle over raising the US debt
ceiling fast approaching, Congress has been looking to make a deal
on the government's emergency funding bill by negotiating a broader
fiscal package that includes raising the debt ceiling.
However, President Obama has said he won't agree to terms for
raising the country's borrowing limit and warned Congress that they
must pass it with no strings attached.
In other news around the markets:
On Thursday, Twitter revealed that it was planning to raise $1
billion at its IPO. Investors got their first look at the company's
impressive financials, however problems like waning user growth and
falling advertisement prices could keep some from jumping on board.
TWTR will be used as the company's ticker symbol, but the stock
exchange to be used was not specified. The Bank of Japan announced
that it would continue with its monetary stimulus at its policy
meeting on Friday. The bank forecast economic growth of 1.3 percent
despite the planned sales tax increase and claimed there was no
evidence to suggest the country would need any further stimulus
measures. Citigroup has been ordered to pay $30 million for
improper research practices. The fine is the result of an analyst
leaking information about Apple and a supplier to investment firms
before it was released to the public nearly ten years ago. German
Chancellor Angela Merkel is set to begin coalition talks with the
Social Democrats on Friday in an effort to form a grand coalition.
Several members of the SDP are resistant to partnering with Merkel,
so the negotiations could continue until next year. Markets will be
watching the talks as Germany's lack of a concrete government will
likely postpone any major eurozone decisions.
Asian markets ended the week on a low with US shutdown worries
weighing on sentiment. The Japanese NIKKEI lost 0.94 percent and
Indonesia's JSX composite was down 0.77 percent. Australia's ASX
200 lost 0.51 percent and the New Zealand NZ 50 fell 0.23
Europe's markets were mixed on Friday, the UK's FTSE was down
0.21 percent and the eurozone's STOXX 600 lost 0.24 percent.
Italy's MIB was helped by unexpectedly positive data and rose 0.57
percent and France's CAC 40 had a slight gain of 0.16 percent.
Energy futures were little changed on Friday, Brent futures fell
0.06 percent and WTI futures lost 0.07 percent. Gold was flat,
silver lost 0.37 percent and industrial metals fell across the
board; with aluminum down 0.60 percent and tin down 0.33
The euro remained above $1.36 heading into the weekend and the
dollar lost out to the yen, down 0.11 percent. The dollar gained
0.25 percent on the pound and lost 0.07 percent against the
Notable companies that reported earnings on Thursday
Xyratex Ltd. (NASDAQ:
) reported EPS of $0.21 on revenue of $217.30 million, compared to
last year's EPS of $0.37 on revenue of $275.67 million. IDT
) reported EPS of $0.13 on revenue of $412.10 million, compared to
last year's EPS of $0.02 on revenue of $384.90 million.
Constellation Brands (NYSE:
) reported EPS of $0.96 on revenue of $1.46 billion, compared to
last year's EPS of $0.71 on revenue of $698.50 million.
Stocks moving in the pre-market included:
The Coca-Cola Co (NYSE:
) gained 0.40 percent in pre-market trade after rolling out a new
"Happiness" campaign. Berkshire Hathaway Inc (NYSE:
) gained 0.16 percent in pre-market trade after losing 2.09 percent
over the past five days. Carnival Corp (NYSE:
) continued its downward fall and lost 0.80 percent in pre-market
No notable earnings reports expected on Friday
The economic calendar of Friday will be relatively quiet, with
PPI data from India, Germany and the eurozone as a whole expected.
The US government shutdown means the highly anticipated non-farm
payrolls data will not be released.
For a recap of Thursday's market action, click
Tune into Benzinga's pre-market info show with Dennis Dick and
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