Markets were more optimistic this morning as relations between
Republicans and Democrats thaws, but jobless claims last week were
much higher than expected.
President Obama will meet with 18 Republicans today to push for a
resolution to the 10-day-old impasse that's seen hundreds of
thousands of government workers furloughed. To reopen the
government and avoid a technical default on the debt, Republicans
might offer a short-term increase in the statutory borrowing limit
to allow for another few weeks of talks. Meanwhile, Treasury
Secretary Lew will appear before the Senate Finance Committee to
discuss ways to avert a catastrophic default on Oct. 17.
Despite the government shutdown, the Bureau of Labor Statistics
published initial jobless claims for last week. Filings rose by
66,000 last week to 374,000. Federal workers can file for
unemployment, but their claims are separate from the regular pool,
which explains why last week's spike in claims wasn't even bigger.
Much of the increase could be explained by layoffs and furloughs of
After a mixed trading session yesterday, stock futures are climbing
in the pre-market.
(INDEXDJX:.DJI) futures were up 0.83% at 14,850 while futures
contracts on the
(INDEXSP:.INX) rose 0.95% to 1,664.50.
(INDEXNASDAQ:.IXIC) futures gained 0.96% to 3,162.25.
Stocks were higher in Europe and Japan. Japanese machinery orders
rose to their highest level since 2008, gaining 5.4% to 819 billion
yen in August. Chinese equities are lower after Premier Li Keqiang
said that GDP probably rose 7.5% for the first three quarters of
the year, falling on the lower side of estimates. He said that
growth sped up in the third quarter but that isn't guaranteed to
continue in the fourth.
) is hoping to hire a new CEO before the end of 2013. When Steve
Ballmer announced in August that he will leave, he said that he
plans to do so within 12 months. Microsoft is already in talks with
) CEO Alan Mulally and internal candidates including former
) head Stephen Elop, who came back to Microsoft after it acquired
Nokia's handset business for $7.2 billion.
) CEO John Donahue asked not to be considered.
Yesterday, IDC said that third-quarter global PC shipments were
down 8% from a year ago. It was expecting a 10% decline. In the US,
) Mac sales declined 11% as the consumer market suffered.
Citrix Systems Inc.
(CTXS) shares fell 12.8% this morning after the IT company reported
preliminary third quarter earnings of $0.68 to $0.69 per share,
warning investors that it will miss analyst estimates by at least