Benchmarks posted modest gains of Friday even as the partial
government shutdown continued. Friday's gains were primarily
driven by hopes that lawmakers will conclude a deal on the
ongoing budget issue and on increasing the country's debt limit.
Despite Friday's gains, the Dow Jones and the S&P 500 ended
in the red. Nonetheless, the Nasdaq finished in the green for the
fifth week in a row. Meanwhile, the third quarter earnings season
is slated to kick off this week. Due to the government shutdown,
the widely awaited nonfarm payrolls report was not released on
Friday. All ten sectors of the S&P 500 industry groups
finished in the green, led by materials and energy stocks.
For a look at the issues currently facing the markets, make sure
to read today's
Ahead of Wall Street
The Dow Jones Industrial Average (DJI) gained 0.5% to close the
day at 15,072.58. The S&P 500 added 0.7% to finish Friday's
trading session at 1,690.50. The tech-laden Nasdaq Composite
Index climbed 0.9% to end at 3,807.75. The fear-gauge CBOE
Volatility Index (VIX) declined 5.3% to settle at 16.74.
Consolidated volumes on the New York Stock Exchange, American
Stock Exchange and Nasdaq were roughly 5.2 billion shares,
considerably lower than 2013's average of 6.1 billion shares.
Advancing stocks outnumbered the decliners. For 64% shares that
advanced, only 33% declined.
The Dow slipped 1.2%, the S&P 500 declined 0.1% and the
Nasdaq rose 0.7%, over the week. Weakness in the S&P 500 and
the blue-chip index was primarily due to political altercations
over the ongoing budget issue. Investors are not only concerned
about the government shutdown, but are even more worried about
the country's debt ceiling deadline. If lawmakers fail to reach a
deal on the budget within the next few days, they might miss the
debt ceiling deadline.
Stocks kicked off Friday's trading session on a positive note and
traded higher for most of the trading session. But stocks trimmed
some gains after Speaker John Boehner said the Congress will not
vote on a spending bill without conditions to end the government
shutdown. He also demanded spending cuts to raise the
government's debt limit. Meanwhile, President Barack Obama
cancelled his trip to Indonesia. According to the White House:
"The president made this decision based on the difficulty in
moving forward with foreign travel in the face of a shutdown, and
his determination to continue pressing his case that Republicans
should immediately allow a vote to reopen the government."
IMF chief Christine Lagarde said the global economy will be
affected if U.S lawmakers fail to raise the government borrowing
limit by October 17. Lagarde added that the U.S. growth rate can
fall below 2% in 2013. Due to the government shutdown nonfarm,
payroll numbers were not released on Friday. According to the
consensus estimate, nonfarm payroll numbers were expected to
increase by 183,000 from the previous month's figure of 169,000.
The third quarter earnings season will unofficially begin this
week. Major companies like Yum! Brands, Inc. (NYSE:
), Alcoa Inc (NYSE:
) are scheduled to post quarterly results on Friday. Financial
bellwether JPMorgan Chase & Co (NYSE:
) and Wells Fargo & Co (NYSE:
) are slated to report results on Friday.
ALCOA INC (AA): Free Stock Analysis Report
AIR PRODS & CHE (APD): Free Stock Analysis
CONOCOPHILLIPS (COP): Free Stock Analysis
DOW CHEMICAL (DOW): Free Stock Analysis
HESS CORP (HES): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis
MONSANTO CO-NEW (MON): Free Stock Analysis
MOSAIC CO/THE (MOS): Free Stock Analysis
MARATHON OIL CP (MRO): Free Stock Analysis
MURPHY OIL (MUR): Free Stock Analysis Report
SHERWIN WILLIAM (SHW): Free Stock Analysis
WELLS FARGO-NEW (WFC): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
YUM! BRANDS INC (YUM): Free Stock Analysis
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The materials sector was the biggest gainer among the S&P 500
industry groups and the Materials Select Sector SPDR (XLB) gained
1.5%. Stocks such as Monsanto Company (NYSE:
), Air Products & Chemicals, Inc. (NYSE:
), The Dow Chemical Company (NYSE:
), Sherwin-Williams Company (NYSE:
) and Mosaic Co (NYSE:
) added 0.5%, 0.8%, 3.2%, 2.0% and 1.8%, respectively.
The energy sector also had a good day and the Energy Select
Sector SPDR (XLE) gained 1.0%. Stocks such as Exxon Mobil
), Hess Corp. (NYSE:
), ConocoPhillips (NYSE:
), Murphy Oil Corporation (NYSE:
) and Marathon Oil Corporation (NYSE:
) increased 1.0%, 0.3%, 1.1%, 1.8% and 2.1%, respectively.