MT Insider: MT Newswires: Day 8 of Gov Shutdown - Still a Gridlock, Oct. 17 Debt Ceiling Looms


The gridlock between the Senate and the House of Representatives continues with a lack of progress overnight.

A short-term debt ceiling hike "trial balloon" was put on the table by the White House, but it doesn't appear the House Republicans are likely to budge. Remember that October 17 is the official deadline to raise the debt ceiling.

According to the Washington Post, "leadership in both parties will probably choose to stay the course for the rest of this week."

While investors seem relatively calm (with the majority anticipating an eventual deal), traders are starting to watch the volatility index (VIX), which increased by 16% yesterday.

While the fiscal gridlock in DC is affecting all sectors of the market, those whose success is most tied to the economy have been most impacted.

These include financials such as (JP Morgan - JPM, Goldman Sachs - GS, Bank of America Merrill Lynch - BAC, Citigroup - C, Wells Fargo - WFC, Morgan Stanley - MS, to name a few), Energy (Exxon Mobil - XOM and Occidental Petroleum - OXY) and Defense (Lockheed Martin - LMT and Raytheon - RTN).

Moreover, Fed communications have been somewhat vague. At present, investors believe that the Fed has laid the groundwork to begin tapering later in 2013 or early in 2014 (but as noted by Chairman Ben Bernanke, such a decision would depend on the pace of growth).

According to the Wall Street Journal, "privately, Stein and two other governors, Powell and Duke, were a driving force behind efforts to limit QE's growth."

Moving outside of US, Asia markets were higher for the first time since 9/30 owing to positive reports on retail and housing while European stocks opened higher only to reverse course in morning trading likely due to concerns over the Washington shutdown.

Separately, a number of analyst meetings are scheduled for today including Accenture ( ACN ) and Hain Celestial Group ( HAIN ), while Aloca ( AA ), ADTRAN ( ADTN ), and Yum! Brands ( YUM ) kick off earnings season for Q3 after the market close.

VIX 19.41 0.00 0.00

SPX 15558.0 +0.25 +0.01

DJIA 14854.0 +3.0 +0.02

IXIC 3206.75 +1.745 +0.05

N225 13894.61 +41.29 +0.30

JPM 51.83 0.00 0.00

GS 154.40 +0.15 +0.10

BAC 13.87 +0.06 +0.43

C 48.40 +0.22 +0.46

WFC 40.45 -0.17 -0.42

MS 26.84 0.00 0.00

LMT 124.00 +0.44 +0.46

RYN 75.22 0.00 0.00

XOM 85.90 0.00 0.00

OXY 95.28 0.00 0.00

RTN 74.22 0.00 0.00

LMT 124.00 +0.44 +0.36

FTSE 6388.53 -48.69 -1.10

ACN 72.35 0.00 0.00

HAIN 79.56 0.00 0.00

AA 7.97 0.00 +9,99 +0.00

ADTN 26.89 0.00 0.00

YUM 71.43 0.00 0.00

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

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

This article appears in: Investing , Commodities

Referenced Stocks: AA , ACN , ADTN , HAIN , YUM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by