With no apparent deal in the works in Washington to pass a
budget that would be palatable to Republicans - defund Obama's
health care bill - or to Democrats - a clean budget with no strings
attached - the government shutdown continued into its 7th day,
putting pressure on stock futures.
While the shutdown is estimated to cost the U.S. economy as much
as $300 million per day, what concerns markets even more is the
prospect of lawmakers not raising the debt ceiling by Oct. 17,
which would make the U.S. default on its loans. Some Republican
lawmakers have vowed to take the demand to defund the healthcare
law with them into debt limit talks.
With a dearth of economic data as government offices remain
shut, Federal Reserve speakers will keep their appointments.
Tonight, Dallas Fed President Fisher is speaking.
In equities, Blackberry (
) was one of bright spots, gaining 3.90% to $7.99 before the market
open after a Reuters report said companies including Cisco Systems
), Google (
) and SAP (
) were in talks with the smartphone maker to buy parts or all of
it. At the other end of the spectrum, Copper Tire & Rubber (
) dropped 13.39% to $29.51 after merger partner Apollo Tyres said
Cooper has acknowledged that it is worth less than the $2.5
billion, or $35 per share, all cash purchase price. "The issue now
is by how much," Apollo said.
Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.