Stocks were lower this morning as the US government concludes a
second full week without a fully functioning government and the
debt ceiling approaches.
Despite the federal holiday today, the two houses of Congress will
convene to hopefully come to a deal that will raise the debt
ceiling before the Oct. 17 deadline. Senate Democrats are eager to
roll back the sequester spending cuts, but Republicans say they
will not accept any changes to it.
) revised its fourth quarter estimate down half a percentage point
to 2% due to the shutdown.
Stocks staged a strong rally on Friday on hopes of a swift solution
to the ongoing government shutdown before the country can no longer
pay its debts. In the absence of any meaningful progress with just
three days left, US stock index futures are down sharply.
(INDEXDJX:.DJI) futures were down 0.60% at 15,084. Futures on the
(INDEXSP:.INX) fell 0.62% to 1,688.40 and
(INDEXNASDAQ:.IXIC) futures sank 0.42% to 3,212.00.
Continental European indices declined slightly after the eurozone
reported that industrial production fell 2.1% from a year ago in
August, though it increased 1% from the month before. Chinese
stocks rose despite reporting an unexpected fall in exports. CPI in
the country rose to a seven-month high of 3.2% annualized. This
data suggests lagging demand abroad, but decent consumer growth at
The Boeing Company
) is reportedly considering furloughing defense, space, and
security workers if the government shutdown continues. Amidst
stop-work orders and no access to government inspectors, those
units, which make up 40% of the company's revenue, will be put on
Toronto Dominion Bank
), one of Canada's biggest lenders, is interested in acquiring the
American retail banking business belonging to
Royal Bank of Scotland
). Citizens Bank, which is valued at 8 billion pounds, is mostly
owned by the British government. George Osborne, Britain's
Chancellor of the Exchequer, will decide whether to sell to TD over
the next few weeks. This follows TD's aggressive expansion into the
US retail banking market.
) is in talks to include itself in cable set-top boxes for
Time Warner Cable
(TWC), and others.
Tonight, outgoing Federal Reserve Chairman Ben Bernanke will
deliver a speech at the Bank of Mexico Conference in Mexico City.
The Royal Swedish Academy of Sciences announced today that Eugene
Fama, Lars Peter Hansen, and Robert Shiller will share the 2013
Nobel Prize in Economics for their analysis of asset price
movements. The economists are famous for the efficient market
hypothesis and behavioral finance.
"There is no way to predict the price of stocks and bonds over the
next few days or weeks. But it is quite possible to foresee the
broad course of these prices over longer periods, such as the next
three to five years," the committee
. "These findings, which might seem both surprising and
contradictory, were made and analyzed by this year's Laureates,
Eugene Fama, Lars Peter Hansen, and Robert Shiller."