NYSE Dow Jones finished today at:

[bigdog]

Source: http://finance.yahoo.com

Investors decided the risk of a conflict with Syria is shrinking and sent stock prices higher.

The Dow Jones industrial average rose 135.54 points, or 0.9 percent, to 15,326.60 on Wednesday. A big decline in Apple and other technology companies held back the Standard & Poor's 500 index and the Nasdaq composite. The S&P 500 managed a small gain, its seventh in a row.

U.S. and Russian diplomats are working on a plan that would lead to Syria giving up chemical weapons that President Barack Obama says were used against civilians. Obama said the U.S. will explore a possible diplomatic solution, though the U.S. military remains ready to attack.

After a tough August, stocks have been rising in September. The S&P 500 is up 3.4 percent so far this month. Since September began, a U.S. strike on Syria has gone from seeming imminent to being something that may or may not ever happen.

The risk that a confrontation with Syria could spread means most investors would be happy if the U.S. doesn't act, said Cam Albright, director of asset allocation at Wilmington Trust Investment Advisors. "Markets are much more happy when they don't have to deal with that particular risk," he said.

The S&P 500 edged up 5.14 points, or 0.3 percent, to 1,689.13. The Nasdaq composite fell 4.01 points, or 0.1 percent, to 3,725.01.

Disappointment over Apple's new iPhone lineup dragged down tech stocks. The two S&P 500 stocks with the biggest declines were Apple and the chip supplier Qualcomm, which makes the radio chip used in previous iPhones and is expected to make the chip used in the new iPhones, too.

Apple's new iPhones struck many as only a modest advance from previous models. Investors fretted that Apple is offering the phone's new operating system for free to people who already own older iPhones, removing an incentive to buy the new model. Also, some analysts felt that Apple's lowest-priced iPhone ”” $549 without a two-year cell phone contract ”” isn't cheap enough to win many buyers in emerging markets.

There was a broad expectation that Apple would cut prices more and go for bigger market share, said Wayne Lam, an analyst for IHS iSuppli, which tracks components used in electronics. Instead, they stuck with their business model of avoiding cheap versions of its products.

"It's a proven business model, and good for them, but I think the expectation is that Apple is losing market share and they're not innovating," he said.

The NYSE DOW closed HIGHER ▲ 135.54 points or ▲ 0.89% on Wednesday, 11 September 2013
Symbol …........Last ......Change.....
Dow_Jones 15326.6 ▲ 135.54 ▲ 0.89%
Nasdaq___ 3725.01 ▼ -4.01 ▼ -0.11%
S&P_500__ 1689.13 ▲ 5.14 ▲ 0.31%
30_Yr_Bond 3.86 ▼ -0.029 ▼ -0.75%

NYSE Volume 3,382,299,000
Nasdaq Volume 1,688,458,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6588.43 ▲ 4.44 ▲ 0.07%
DAX_____ 8495.73 ▲ 49.19 ▲ 0.58%
CAC_40__ 4119.11 ▲ 2.47 ▲ 0.06%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5230.6 ▲ 31.7 ▲ 0.61%
Shanghai_Comp 2241.27 ▲ 3.28 ▲ 0.15%
Taiwan_Weight 8208.99 ▲ 0.22 ▲ 0.00%
Nikkei_225____ 14425.07 ▲ 1.71 ▲ 0.01%
Hang_Seng____ 22937.14 ▼ -39.51 ▼ -0.17%
Strait_Times___ 3108.19 ▼ -15.7 ▼ -0.50%
NZX_50_Index__ 4634.9 ▲ 7.14 ▲ 0.15%

http://finance.yahoo.com/news/stocks-rise-iphone-disappointment-hurts-204901730.html

Stocks rise; iPhone disappointment hurts Apple

Stocks mostly rise; Dow, S&P 500 up but Apple pulls down the Nasdaq composite

By Joshua Freed, AP Business Writer

Investors decided the risk of a conflict with Syria is shrinking and sent stock prices higher.

The Dow Jones industrial average rose 135.54 points, or 0.9 percent, to 15,326.60 on Wednesday. A big decline in Apple and other technology companies held back the Standard & Poor's 500 index and the Nasdaq composite. The S&P 500 managed a small gain, its seventh in a row.

U.S. and Russian diplomats are working on a plan that would lead to Syria giving up chemical weapons that President Barack Obama says were used against civilians. Obama said the U.S. will explore a possible diplomatic solution, though the U.S. military remains ready to attack.

After a tough August, stocks have been rising in September. The S&P 500 is up 3.4 percent so far this month. Since September began, a U.S. strike on Syria has gone from seeming imminent to being something that may or may not ever happen.

The risk that a confrontation with Syria could spread means most investors would be happy if the U.S. doesn't act, said Cam Albright, director of asset allocation at Wilmington Trust Investment Advisors. "Markets are much more happy when they don't have to deal with that particular risk," he said.

The S&P 500 edged up 5.14 points, or 0.3 percent, to 1,689.13. The Nasdaq composite fell 4.01 points, or 0.1 percent, to 3,725.01.

Disappointment over Apple's new iPhone lineup dragged down tech stocks. The two S&P 500 stocks with the biggest declines were Apple and the chip supplier Qualcomm, which makes the radio chip used in previous iPhones and is expected to make the chip used in the new iPhones, too.

Apple's new iPhones struck many as only a modest advance from previous models. Investors fretted that Apple is offering the phone's new operating system for free to people who already own older iPhones, removing an incentive to buy the new model. Also, some analysts felt that Apple's lowest-priced iPhone ”” $549 without a two-year cell phone contract ”” isn't cheap enough to win many buyers in emerging markets.

There was a broad expectation that Apple would cut prices more and go for bigger market share, said Wayne Lam, an analyst for IHS iSuppli, which tracks components used in electronics. Instead, they stuck with their business model of avoiding cheap versions of its products.

"It's a proven business model, and good for them, but I think the expectation is that Apple is losing market share and they're not innovating," he said.

Apple fell $26.93, or 5.4 percent, at $467.71. Apple stock fell on Tuesday, too, after rising 11 percent in the month leading up to the announcement.

Qualcomm fell $2, or 2.9 percent, to $68.09. Apple makes up some 15 percent of Qualcomm revenue, Lam estimates. Supplier Cirrus Logic Inc. fell $1.20, or 5.2 percent, to $21.89.

Utilities and tech were the only two industry sectors in the S&P 500 that fell. The other eight rose, led by energy stocks.

Traders on the floor of the New York Stock Exchange observed a moment of silence shortly before trading began on the 12th anniversary of the Sept. 11 terrorist attacks.

Other companies making big moves included:

”” Restoration Hardware, down $9.02, or 11.9 percent, to $67.04 after reporting second-quarter sales that were not as strong as in the first quarter.

”” Disney rose $1.11, or 1.8 percent, to $63.94 after delaying its fifth "Pirates of the Caribbean" movie from a planned 2015 opening. Studios struggled with big-budget flops this summer, including Disney's "The Lone Ranger," and investors may be glad that it will take its time with the "Pirates" sequel.

”” IBM rose $4.10, or 2.2 percent, to $190.70 after saying it would sell a customer care outsourcing business to Synnex for $505 million in cash and stock. Synnex soared $9.62, or 20 percent, to $57.59.

Oil prices rose 17 cents to close at $107.56 after two days of declines. Gold fell 20 cents to $1,363.80.

The yield on the 10-year Treasury note fell to 2.92 percent from 2.97 percent a day earlier.

The dollar weakened slightly to 1.33 euro and 99.86 Japanese yen.

 

[bigdog]

Source: http://finance.yahoo.com

The Dow Jones industrial average edged down 25.96 points, or 0.2 percent, to close at 15,300.64. The Dow had gained 404 points over the previous three days and is still up 3.3 percent this month.

The last three days of gains have helped the Dow recover the bulk of its losses in August, the worst month for the blue-chip index since May 2012.

The Standard & Poor's 500 index fell 5.71 points, or 0.3 percent, to 1,683.42 after rising the previous seven days. That was the longest winning streak since a string of eight gains between July 3 and July 15.

The Nasdaq composite fell 9.04 points, or 0.2 percent, to 3,715.97. That followed a sharp decline Wednesday caused by a sell-off in Apple's stock.

The Dow did better than other indices because of Walt Disney, which jumped after the company said it plans to buy back up to $8 billion of its own stock starting next year. Disney rose $1.55, or 2 percent, to $65.49.

September was supposed to be ugly for financial markets.

The prospects of a U.S. attack on Syria and less economic stimulus from the Federal Reserve only added to investor worries going into September, which historically is the worst month of the year for stocks.

Instead, the Dow Jones industrial average is up 3.3 percent so far this month, even after it slipped 26 points, to 15,300.64 on Thursday. The Standard & Poor's 500 index is up 3.1 percent this month, after falling six points Thursday to 1,683.42.

The S&P 500 rose for seven straight days before Thursday, its longest winning streak since July. The Dow climbed three straight days before Thursday's loss.

Another positive sign for markets is the CBOE Volatility Index, sometimes referred to as "Wall Street's fear gauge." When the VIX, as it is better known, moves higher, it means investors expect more volatility in the next 30 days. It is down more than 15 percent this month. Gold, another signal of investor fear, is down more than five percent.

What happened to gloomy September?

The recent de-escalation of the U.S.-Syria crisis combined with a calming in the bond market has provided fuel to lift stocks, market strategists and investors said. Expectations of stronger corporate earnings are also helping out stocks, investors said.

While the ultimate fate of a U.S. attack on Syria is unknown, it looks like an immediate missile strike isn't happening soon.

Syrian President Bashar Assad said Thursday his government has agreed to surrender its chemical weapons in response to a Russian proposal.

"Syria is still there as a concern, but it's starting to de-escalate," said Richard Sichel, chief investment officer at Philadelphia Trust Co., which manages $1.9 billion in assets.

While Syria's economy is too small to have an impact on the global economy, the country is important for oil markets since a conflict there could escalate and jeopardize the flow of crude from the Middle East.

"We're no longer looking at the worst-case scenario," said Burt White, chief investment officer with LPL Financial.

It's also important to look at what's happened in the bond market the last couple of weeks, said J.J. Kinahan, chief strategist at TD Ameritrade.

Investors had been dumping bonds most of the summer, Kinahan said, as investors prepared for the Fed to quickly wind down a bond-purchase program that had kept interest rates low for so long. The yield on the 10-year Treasury note soared from 1.63 percent in early May to 3 percent last week. Bond prices fall as yields rise.

The NYSE DOW closed LOWER ▼ -25.96 points or ▼ -0.17% on Thursday, 12 September 2013
Symbol …........Last ......Change.....
Dow_Jones 15300.64 ▼ -25.96 ▼ -0.17%
Nasdaq___ 3715.97 ▼ -9.04 ▼ -0.24%
S&P_500__ 1683.42 ▼ -5.71 ▼ -0.34%
30_Yr_Bond 3.85 ▼ -0.01 ▼ -0.39%

NYSE Volume 3,368,567,750
Nasdaq Volume 1,628,226,750

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6588.98 ▲ 0.55 ▲ 0.01%
DAX_____ 8494 ▼ -1.73 ▼ -0.02%
CAC_40__ 4106.63 ▼ -12.48 ▼ -0.30%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5238.2 ▲ 7.6 ▲ 0.15%
Shanghai_Comp 2255.6 ▲ 14.34 ▲ 0.64%
Taiwan_Weight 8225.36 ▲ 16.37 ▲ 0.20%
Nikkei_225____ 14387.27 ▼ -37.8 ▼ -0.26%
Hang_Seng____ 22953.72 ▲ 16.58 ▲ 0.07%
Strait_Times___ 3121.08 ▲ 12.89 ▲ 0.41%
NZX_50_Index__ 4641.5 ▲ 6.6 ▲ 0.14%

http://finance.yahoo.com/news/fear-volatile-september-stocks-fades-212103345.html

Fear of volatile September for stocks fades

September starts strong for stocks, despite previous worries

By Ken Sweet, AP Markets Writer

September was supposed to be ugly for financial markets.

The prospects of a U.S. attack on Syria and less economic stimulus from the Federal Reserve only added to investor worries going into September, which historically is the worst month of the year for stocks.

Instead, the Dow Jones industrial average is up 3.3 percent so far this month, even after it slipped 26 points, to 15,300.64 on Thursday. The Standard & Poor's 500 index is up 3.1 percent this month, after falling six points Thursday to 1,683.42.

The S&P 500 rose for seven straight days before Thursday, its longest winning streak since July. The Dow climbed three straight days before Thursday's loss.

Another positive sign for markets is the CBOE Volatility Index, sometimes referred to as "Wall Street's fear gauge." When the VIX, as it is better known, moves higher, it means investors expect more volatility in the next 30 days. It is down more than 15 percent this month. Gold, another signal of investor fear, is down more than five percent.

What happened to gloomy September?

The recent de-escalation of the U.S.-Syria crisis combined with a calming in the bond market has provided fuel to lift stocks, market strategists and investors said. Expectations of stronger corporate earnings are also helping out stocks, investors said.

While the ultimate fate of a U.S. attack on Syria is unknown, it looks like an immediate missile strike isn't happening soon.

Syrian President Bashar Assad said Thursday his government has agreed to surrender its chemical weapons in response to a Russian proposal.

"Syria is still there as a concern, but it's starting to de-escalate," said Richard Sichel, chief investment officer at Philadelphia Trust Co., which manages $1.9 billion in assets.

While Syria's economy is too small to have an impact on the global economy, the country is important for oil markets since a conflict there could escalate and jeopardize the flow of crude from the Middle East.

"We're no longer looking at the worst-case scenario," said Burt White, chief investment officer with LPL Financial.

It's also important to look at what's happened in the bond market the last couple of weeks, said J.J. Kinahan, chief strategist at TD Ameritrade.

Investors had been dumping bonds most of the summer, Kinahan said, as investors prepared for the Fed to quickly wind down a bond-purchase program that had kept interest rates low for so long. The yield on the 10-year Treasury note soared from 1.63 percent in early May to 3 percent last week. Bond prices fall as yields rise.

Nearly every major debt investment in the U.S. is pegged to the 10-year note, from rates on corporate loans and home mortgages to student loans. When yields rise, it raises the cost of lending for everyone ”” potentially cutting into corporate profits, weighing down the stock and housing markets, and ultimately affecting the economy.

"The yield on the 10-year Treasury may be the most important number in the entire world," White said.

But after the 10-year note struck that psychologically-important three percent mark, the selloff of the notes slowed, along with the rise of the yield.

Most investors have become more comfortable with the Fed's plan and do not believe the central bank will reduce its bond purchases as much as originally anticipated, several investors said. The Fed is buying $85 billion of bonds each month. It could limit purchases to $75 billion or $80 billion a month, instead of $55 billion.

"The bond market got ahead of itself and expected a big exit by the Fed and frankly that hasn't happened and it's unlikely it's going to happen," White said.

There are other signs of a calmer bond market. Verizon Communications sold $49 billion in bonds Wednesday, the biggest bond sale ever by a corporation. Demand was robust as bond investors placed more than $100 billion in orders for Verizon's offering. On the same day, the Treasury Department auctioned off $21 billion in fresh 10-year notes, which was also met with strong demand.

"The fact that the market was able to absorb that much supply is very important," said Eric Wiegand, senior portfolio manager for the U.S. Bank's private client reserve.

The amount of money in the U.S. bond market is around $38 trillion, roughly double the size of the U.S. stock market. So when things calm down in the bond market, it affects stocks.

Investors are looking ahead to slow but steady growth in corporate earnings, as third-quarter earnings season starts up in October.

LPL's White pointed to stronger-than-expected manufacturing and service industry reports from the Institute for Supply Management last week as another reason why stocks have performed so well.

"Nothing predicts how corporate earnings will do better than the ISM reports," he said.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks rose broadly Friday, giving the Dow Jones industrial average its best week since January.

The market got a lift from two economic reports, one showing that inflation remained tame in August and the other showing that Americans spent more at stores last month.

The Dow rose 75.42 points, or 0.5 percent, to 15,376.06. The index closed up three percent for the week, its best five-day performance since the week ending Jan. 4.

Intel led the Dow higher. Analysts at Jefferies & Co. said Intel may be able to increase its sales with power-efficient chips. Intel rose 81 cents, or 3.6 percent, to $23.44.

The Standard & Poor's 500 index rose 4.57 points, or 0.3 percent, to 1,687.99. The Nasdaq composite index rose 6.22 points, or 0.2 percent, to 3,722.18.

Traders had a few economic reports to work through. Americans increased their spending modestly in August, roughly 0.2 percent, the Commerce Department reported, however that was half of what economists expected.

The sales report was mixed. Shoppers spent more on cars, electronics and furniture, but they didn't buy much else. Last month, several retail chains including Nordstrom, Macy's and Wal-Mart cut their profit forecasts for the year.

The government also reported that wholesale prices rose 0.3 percent last month. Over the past year, prices have only gained 1.4 percent, a sign that inflation has remains modest. One thing driving wholesale prices higher was energy, which spiked as tensions with Syria and the U.S. escalated.

Trading was light as Wall Street headed into the weekend and the Jewish holiday of Yom Kippur.

Investors were looking ahead to the Federal Reserve's policy meeting on Sept. 17-18, when the central bank is expected to decide the future of its bond-buying program.

"There's a lot of 'wait and see' going on until the Fed meeting next week," said Frank Davis, director of sales and trading at LEK Securities.

The Fed is buying $85 billion in bonds each month, and the consensus among investors is that the central bank will decide to reduce its buying to about $75 billion or $80 billion a month. The question is not whether the Fed will cut back on its bond buying but by how much, said Scott Clemons, chief investment strategist with Brown Brothers Harriman Wealth Management.

The NYSE DOW closed HIGHER ▲ 75.42 points or ▲ 0.49% on Friday, 13 September 2013
Symbol …........Last ......Change.....
Dow_Jones 15376.06 ▲ 75.42 ▲ 0.49%
Nasdaq___ 3722.18 ▲ 6.22 ▲ 0.17%
S&P_500__ 1687.99 ▲ 4.57 ▲ 0.27%
30_Yr_Bond 3.847 ▲ 0.002 ▲ 0.05%

NYSE Volume 2,969,530,500
Nasdaq Volume 1,439,453,750

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6583.8 ▼ -5.18 ▼ -0.08%
DAX_____ 8509.42 ▲ 15.42 ▲ 0.18%
CAC_40__ 4114.5 ▲ 7.87 ▲ 0.19%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5214.7 ▼ -23.5 ▼ -0.45%
Shanghai_Comp 2236.22 ▼ -19.39 ▼ -0.86%
Taiwan_Weight 8168.2 ▼ -57.16 ▼ -0.69%
Nikkei_225____ 14404.67 ▲ 17.4 ▲ 0.12%
Hang_Seng____ 22915.28 ▼ -38.44 ▼ -0.17%
Strait_Times___ 3120.3 ▼ -0.78 ▼ -0.02%
NZX_50_Index__ 4650.94 ▲ 9.44 ▲ 0.20%

http://finance.yahoo.com/news/dow-j...;_ylg=X3oDMTBhYWM1a2sxBGxhbmcDZW4tVVM-;_ylv=3

Dow Jones average has its best week since January

Stocks keep rolling in September: Dow Jones industrial average has its best week since January

By Ken Sweet, AP Markets Writer

Stocks rose broadly Friday, giving the Dow Jones industrial average its best week since January.

The market got a lift from two economic reports, one showing that inflation remained tame in August and the other showing that Americans spent more at stores last month.

The Dow rose 75.42 points, or 0.5 percent, to 15,376.06. The index closed up three percent for the week, its best five-day performance since the week ending Jan. 4.

Intel led the Dow higher. Analysts at Jefferies & Co. said Intel may be able to increase its sales with power-efficient chips. Intel rose 81 cents, or 3.6 percent, to $23.44.

The Standard & Poor's 500 index rose 4.57 points, or 0.3 percent, to 1,687.99. The Nasdaq composite index rose 6.22 points, or 0.2 percent, to 3,722.18.

Traders had a few economic reports to work through. Americans increased their spending modestly in August, roughly 0.2 percent, the Commerce Department reported, however that was half of what economists expected.

The sales report was mixed. Shoppers spent more on cars, electronics and furniture, but they didn't buy much else. Last month, several retail chains including Nordstrom, Macy's and Wal-Mart cut their profit forecasts for the year.

The government also reported that wholesale prices rose 0.3 percent last month. Over the past year, prices have only gained 1.4 percent, a sign that inflation has remains modest. One thing driving wholesale prices higher was energy, which spiked as tensions with Syria and the U.S. escalated.

Trading was light as Wall Street headed into the weekend and the Jewish holiday of Yom Kippur.

Investors were looking ahead to the Federal Reserve's policy meeting on Sept. 17-18, when the central bank is expected to decide the future of its bond-buying program.

"There's a lot of 'wait and see' going on until the Fed meeting next week," said Frank Davis, director of sales and trading at LEK Securities.

The Fed is buying $85 billion in bonds each month, and the consensus among investors is that the central bank will decide to reduce its buying to about $75 billion or $80 billion a month. The question is not whether the Fed will cut back on its bond buying but by how much, said Scott Clemons, chief investment strategist with Brown Brothers Harriman Wealth Management.

The price of gold fell $22 to $1,308.60 an ounce. Oil slipped 39 cents to $108.21 a barrel. The yield on the 10-year Treasury note fell to 2.89 percent from 2.91 percent late Thursday.

September has been very strong for stocks so far. The Dow is up 3.8 percent and the S&P 500 has gained 3.4 percent.

In corporate news, Ulta Salon, Cosmetics & Fragrances surged $17.37, or 17 percent, to $117.50. The company reported a 28-percent increase in quarterly profit, thanks to stronger sales at its growing chain of stores.

Supermarket chain Safeway rose $1.61, or 6 percent, to $28.20 after analysts at Credit Suisse upgraded the stock to "outperform" from "underperform."

Galena Biopharma plunged 34 cents, or 14.9 percent, to $1.94 after the company sold 17.5 million shares of stock at $2 a share.

0979

 

[bigdog]

Source: http://finance.yahoo.com

Stocks are higher after former Treasury Secretary Larry Summers withdrew from the race to become head of the Federal Reserve.

Summers had been expected to move aggressively to rein in the Fed's huge economic stimulus program.

The Dow Jones industrial average rose 118 points, or 0.8 percent, to close at 15,494 Monday.

The Standard & Poor's 500 index rose nine points, or 0.6 percent, to 1,697.

The Nasdaq composite fell four points, or 0.1 percent, to 3,717, pulled down by Apple.

The president is expected to nominate Ben Bernanke's successor as early as this month. The current front-runner is Janet Yellen, the Fed's vice chair.

Two stocks rose for every one that fell on the New York Stock Exchange. Volume was average at 3 billion shares.

The NYSE DOW closed HIGHER ▲ 118.72 points or ▲ 0.77% on Monday, 16 September 2013
Symbol …........Last ......Change.....
Dow_Jones 15494.78 ▲ 118.72 ▲ 0.77%
Nasdaq___ 3717.85 ▼ -4.34 ▼ -0.12%
S&P_500__ 1697.6 ▲ 9.61 ▲ 0.57%
30_Yr_Bond 3.871 ▲ 0.024 ▲ 0.62%

NYSE Volume 3,356,156,750
Nasdaq Volume 1,485,911,120

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6622.86 ▲ 33.88 ▲ 0.51%
DAX_____ 8613 ▲ 103.58 ▲ 1.22%
CAC_40__ 4152.22 ▲ 37.72 ▲ 0.92%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5241.7 ▲ 27 ▲ 0.52%
Shanghai_Comp 2231.4 ▼ -4.82 ▼ -0.22%
Taiwan_Weight 8255.34 ▲ 112.86 ▲ 1.39%
Nikkei_225____ 14404.67 ▲ 17.4 ▲ 0.12%
Hang_Seng____ 23252.41 ▲ 337.13 ▲ 1.47%
Strait_Times___ 3179.48 ▲ 59.18 ▲ 1.90%
NZX_50_Index__ 4693.62 ▲ 42.68 ▲ 0.92%

http://finance.yahoo.com/news/stocks-rise-summers-exits-fed-200956355.html

Stocks rise after Summers exits Fed race

Stocks rise after Summers exits race for Fed chairman; investors expect more stimulus

Stocks are higher after former Treasury Secretary Larry Summers withdrew from the race to become head of the Federal Reserve.

Summers had been expected to move aggressively to rein in the Fed's huge economic stimulus program.

The Dow Jones industrial average rose 118 points, or 0.8 percent, to close at 15,494 Monday.

The Standard & Poor's 500 index rose nine points, or 0.6 percent, to 1,697.

The Nasdaq composite fell four points, or 0.1 percent, to 3,717, pulled down by Apple.

The president is expected to nominate Ben Bernanke's successor as early as this month. The current front-runner is Janet Yellen, the Fed's vice chair.

Two stocks rose for every one that fell on the New York Stock Exchange. Volume was average at 3 billion shares.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks rose on Tuesday as investors shrugged off worries about what the Federal Reserve is up to.

Many expect the Fed to announce Wednesday that it will reduce its $85 billion monthly bond-buying program. Wall Street is hoping for a small reduction because the bond-buying has kept interest rates ultra-low and made it cheaper to borrow money.

The Dow Jones industrial average closed higher by 34.95 points, or 0.2 percent, at 15,529.73.

The Standard & Poor's 500 index rose 7.16 points, or 0.4 percent, to 1,704.76. The S&P 500 was five points below its record high reached on Aug. 2. It has risen for three trading days in a row, and 10 of the last 11.

The Nasdaq composite was up 27.85 points, or 0.8 percent, at 3,745.70; it had the biggest percentage gain of the three big indexes.

Nine out of 10 industry groups in the S&P 500 rose, led by technology. The only declines were for materials stocks, which include miners, industrial gas producers and metal refiners.

Rising tech stocks included the video game company Electronic Arts, which is getting a solid start with this year's version of its Madden football franchise. Electronic Arts rose 64 cents, or 2 percent, to $27.60.

Computer memory maker Micron Technology rose 40 cents, or 2 percent, to $16.84 as investors bet that memory prices will rise after a fire shut down a competitor's factory in China.

By some measures, stock market values are as high as they were at the end of the Internet bubble in 2000, when compared to the size of the nation's economy, said Martin Leclerc, a principal and chief investment officer at Barrack Yard Advisors in Bryn Mawr, Pa.

Then, there was at least the justification of new technology.

"Now, the only justification we have is cheap money," Leclerc said.

Nonetheless, Leclerc said, with a bull market underway stocks could keep climbing regardless of valuations. "This thing is a powerful beast," he said. The current bull market is four-and-a-half years old.

The NYSE DOW closed HIGHER ▲ 34.95 points or ▲ 0.23% on Tuesday, 17 September 2013
Symbol …........Last ......Change.....
Dow_Jones 15529.73 ▲ 34.95 ▲ 0.23%
Nasdaq___ 3745.7 ▲ 27.85 ▲ 0.75%
S&P_500__ 1704.76 ▲ 7.16 ▲ 0.42%
30_Yr_Bond 3.84 ▼ -0.031 ▼ -0.80%

NYSE Volume 2,993,560,000
Nasdaq Volume 1,481,483,750

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6570.17 ▼ -52.69 ▼ -0.80%
DAX_____ 8596.95 ▼ -16.05 ▼ -0.19%
CAC_40__ 4145.51 ▼ -6.71 ▼ -0.16%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5245.2 ▲ 3.5 ▲ 0.07%
Shanghai_Comp 2185.56 ▼ -45.84 ▼ -2.05%
Taiwan_Weight 8249.78 ▼ -5.56 ▼ -0.07%
Nikkei_225____ 14311.67 ▼ -93 ▼ -0.65%
Hang_Seng____ 23180.52 ▼ -71.89 ▼ -0.31%
Strait_Times___ 3180.92 ▲ 1.44 ▲ 0.05%
NZX_50_Index__ 4698.03 ▲ 4.4 ▲ 0.09%

http://finance.yahoo.com/news/stocks-higher-fed-kicks-off-141543953.html

Stocks higher as Fed kicks off 2-day meeting

Stocks edge higher ahead of Federal Reserve meeting; S&P 500 headed for a third straight gain

By Joshua Freed, AP Business Writer

Stocks rose on Tuesday as investors shrugged off worries about what the Federal Reserve is up to.

Many expect the Fed to announce Wednesday that it will reduce its $85 billion monthly bond-buying program. Wall Street is hoping for a small reduction because the bond-buying has kept interest rates ultra-low and made it cheaper to borrow money.

The Dow Jones industrial average closed higher by 34.95 points, or 0.2 percent, at 15,529.73.

The Standard & Poor's 500 index rose 7.16 points, or 0.4 percent, to 1,704.76. The S&P 500 was five points below its record high reached on Aug. 2. It has risen for three trading days in a row, and 10 of the last 11.

The Nasdaq composite was up 27.85 points, or 0.8 percent, at 3,745.70; it had the biggest percentage gain of the three big indexes.

Nine out of 10 industry groups in the S&P 500 rose, led by technology. The only declines were for materials stocks, which include miners, industrial gas producers and metal refiners.

Rising tech stocks included the video game company Electronic Arts, which is getting a solid start with this year's version of its Madden football franchise. Electronic Arts rose 64 cents, or 2 percent, to $27.60.

Computer memory maker Micron Technology rose 40 cents, or 2 percent, to $16.84 as investors bet that memory prices will rise after a fire shut down a competitor's factory in China.

By some measures, stock market values are as high as they were at the end of the Internet bubble in 2000, when compared to the size of the nation's economy, said Martin Leclerc, a principal and chief investment officer at Barrack Yard Advisors in Bryn Mawr, Pa.

Then, there was at least the justification of new technology.

"Now, the only justification we have is cheap money," Leclerc said.

Nonetheless, Leclerc said, with a bull market underway stocks could keep climbing regardless of valuations. "This thing is a powerful beast," he said. The current bull market is four-and-a-half years old.

The Labor Department reported on Tuesday that U.S consumer prices barely rose last month, another sign that slow economic growth is keeping inflation low. That pushed the yield on the benchmark 10-year Treasury note down slightly, to 2.85 percent from 2.86 percent late Monday.

Rising profits "support stock prices where they are, and could support, going into 2014, prices going a little higher," said Jim Dunigan, managing executive of investments for PNC Wealth Management in Philadelphia.

"Most, if not all, the evidence would suggest the economy is improving," he said.

A few companies benefited from large investments.

Safeway, a major grocery store chain, jumped $2.95, or more than 10 percent, to $30.99 after saying an unnamed investor had bought a significant amount of its stock. Safeway said it adopted a "poison-pill" defense measure to thwart any hostile takeover attempt.

Aeropostale jumped $1.56, or 18 percent, to $10.17 after Sycamore Partners disclosed an 8 percent stake in the teen retailer. And Huntsman, a chemical maker, rose 36 cents, or 2 percent, to $19.50 after saying it will pay $1.1 billion for two businesses from Rockwood Holdings, which rose 60 cents, or 2 percent, to $67.21.

Other companies making big moves included:

”” Abercrombie & Fitch rode Aeropostale's coattails, moving up $1.09, or 3 percent, to $38.43.

”” Microsoft rose after announcing a 22 percent dividend increase and a $40 billion stock buyback program. Microsoft gained 13 cents, or 0.4 percent, to $32.93, after going as high as $33.47 in the morning.

”” Boeing rose $1.44, or 1.2 percent, to $117.11 as a stretched version of its new 787 flew for the first time. Boeing's gain was responsible for one-third of the Dow's rise.

”” Outerwall, which owns the Redbox DVD kiosks, plunged $6.48, or almost 12 percent, to $49.49 after slashing its outlook because of weaker-than-expected demand for discs.

The price of crude oil fell $1.17, or 1.1 percent, to close at $105.42 a barrel in New York.

 

[bigdog]

Source: http://finance.yahoo.com

The stock market hit a record high Wednesday as investors cheered the Federal Reserve's surprise decision to keep its economic stimulus program in place.

Stocks traded slightly lower throughout the morning, but took off immediately after the Fed's decision in the early afternoon. Bond yields fell sharply ”” their biggest move in nearly two years. The price of gold had its biggest one-day jump in four years as traders anticipated that the Fed's decision might cause inflation.

Fed policymakers decided to maintain the central bank's $85 billion in monthly bond buying, a program that had been in place in one form or another since late 2008. The buying is designed to keep interest rates low to spur economic growth, and has fueled a four-and-a-half-year bull run in stocks.

While the U.S. economy appeared to be improving, the bank's policymakers "decided to await more evidence that progress will be sustained" before deciding to slow bond purchases. The bank also cut its full-year economic outlook for this year and the next.

Stock traders completely shrugged off the Fed's dimmer outlook and focused on the continued stimulus.

The S&P 500 surged 20.76 points, or 1.2 percent, to 1,725.52, slicing through its previous all-time high of 1,709.67 set on Aug. 2.

The Dow Jones industrial average jumped 147.21 points, or 1 percent, to 15,676.94, also above its previous record high of 15,658 from Aug. 2.

The Nasdaq composite rose 37.94 points, 1 percent, to 3,783.64.

The fate of the Fed's economic stimulus program has been the biggest question on Wall Street for months. It was widely expected that the Fed would cut back on its bond buying at the September meeting.

Tom di Galoma, a bond trader at ED&F Man Capital, said he was "completely shocked" that the Fed decided to wait.

Some investors advised caution, even as the stock market hit all-time highs.

While the Fed's decision is positive for the market in the short term, "investors need to take a step back and consider the idea that maybe the U.S economy is on weaker footing than we originally thought," said Marc Doss, regional chief investment officer for Wells Fargo Private Bank.

The NYSE DOW closed HIGHER ▲ 147.21 points or ▲ 0.95% on Wednesday, 18 September 2013
Symbol …........Last ......Change.....
Dow_Jones 15676.94 ▲ 147.21 ▲ 0.95%
Nasdaq___ 3783.64 ▲ 37.94 ▲ 1.01%
S&P_500__ 1725.52 ▲ 20.76 ▲ 1.22%
30_Yr_Bond 3.75 ▼ -0.09 ▼ -2.21%

NYSE Volume 4,410,941,500
Nasdaq Volume 1,789,865,120

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6558.82 ▼ -11.35 ▼ -0.17%
DAX_____ 8636.06 ▲ 39.11 ▲ 0.45%
CAC_40__ 4170.4 ▲ 24.89 ▲ 0.60%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5230.4 ▼ -14.8 ▼ -0.28%
Shanghai_Comp 2191.85 ▲ 6.29 ▲ 0.29%
Taiwan_Weight 8209.18 ▼ -40.6 ▼ -0.49%
Nikkei_225____ 14505.36 ▲ 193.69 ▲ 1.35%
Hang_Seng____ 23117.45 ▼ -63.07 ▼ -0.27%
Strait_Times___ 3193.85 ▲ 12.93 ▲ 0.41%
NZX_50_Index__ 4703.83 ▲ 5.8 ▲ 0.12%

http://finance.yahoo.com/news/stock-market-sets-record-fed-204754571.html

Stock market sets record after Fed keeps stimulus

Stock market sets all-time high after Federal Reserve decides to continue economic stimulus

By Ken Sweet, AP Markets Writer

The stock market hit a record high Wednesday as investors cheered the Federal Reserve's surprise decision to keep its economic stimulus program in place.

Stocks traded slightly lower throughout the morning, but took off immediately after the Fed's decision in the early afternoon. Bond yields fell sharply ”” their biggest move in nearly two years. The price of gold had its biggest one-day jump in four years as traders anticipated that the Fed's decision might cause inflation.

Fed policymakers decided to maintain the central bank's $85 billion in monthly bond buying, a program that had been in place in one form or another since late 2008. The buying is designed to keep interest rates low to spur economic growth, and has fueled a four-and-a-half-year bull run in stocks.

While the U.S. economy appeared to be improving, the bank's policymakers "decided to await more evidence that progress will be sustained" before deciding to slow bond purchases. The bank also cut its full-year economic outlook for this year and the next.

Stock traders completely shrugged off the Fed's dimmer outlook and focused on the continued stimulus.

The S&P 500 surged 20.76 points, or 1.2 percent, to 1,725.52, slicing through its previous all-time high of 1,709.67 set on Aug. 2.

The Dow Jones industrial average jumped 147.21 points, or 1 percent, to 15,676.94, also above its previous record high of 15,658 from Aug. 2.

The Nasdaq composite rose 37.94 points, 1 percent, to 3,783.64.

The fate of the Fed's economic stimulus program has been the biggest question on Wall Street for months. It was widely expected that the Fed would cut back on its bond buying at the September meeting.

Tom di Galoma, a bond trader at ED&F Man Capital, said he was "completely shocked" that the Fed decided to wait.

Some investors advised caution, even as the stock market hit all-time highs.

While the Fed's decision is positive for the market in the short term, "investors need to take a step back and consider the idea that maybe the U.S economy is on weaker footing than we originally thought," said Marc Doss, regional chief investment officer for Wells Fargo Private Bank.

Bond prices also rose sharply, sending yields lower. The yield on the 10-year Treasury note fell to 2.68 percent ”” from 2.87 percent a minute before the Fed released its statement. It was rush into bonds by investors not seen since October 2011. That yield is a benchmark for many kinds of lending rates, including home mortgages.

As bond yields plunged, investors snapped up stocks that tend to pay richer dividends, such as utilities. The Dow Jones utility average jumped 3 percent, its best day in two years.

Home builder stocks also rose as investors speculated that the Fed's pledge to keep interest rates low would continue to benefit the housing market. Pulte Homes, Hovnanian and Toll Brothers were up more than five percent each, while homebuilder D.R. Horton jumped nearly seven percent.

The price of gold jumped $55, or 4 percent, to $1,364 an ounce.

In June, Fed Chairman Ben Bernanke laid out a plan to start easing up on the bond purchases, and pledged to end them by the middle of 2014, if the economy continued to improve.

The Fed's next meeting is October 29-30 ”” another opportunity for the central bank to start reducing the program.

Wells Fargo's Doss and other investors said the Fed might be waiting to see what happens in Washington, D.C. in the coming weeks. A debate over the debt ceiling and a showdown between Congressional Republicans and the White House over the budget looms.

Bernanke probably kept the stimulus in place because he wanted to be certain the economy was ready to function without the Fed's help, said Matt Tom, head of public fixed income at ING U.S. Investment Management.

Cutting back before the economy was ready would have been much more destabilizing to the market, he said.

 

[bigdog]

Source: http://finance.yahoo.com

The stock market paused Thursday as investors tried to figure out what to do next following the Federal Reserve's decision to hold steady on its stimulus for the economy.

The Dow Jones industrial average and Standard & Poor's 500 index pulled back from their record highs the day before. Gold, historically a haven for nervous investors, had its biggest one-day jump since the onset of the financial crisis in September 2008.

Many investors had expected the central bank scale back its $85 billion in monthly bond purchases, but the Fed said it first needed to see more evidence that the economy was improving.

The question now is whether stocks can continue their strong run-up given the Fed's dimmer outlook on the economy. The stock market is up 21 percent for the year, and 155 percent since a recession low in March 2009. And, after a tough August, the S&P 500 has risen 11 of the last 13 days.

Wednesday's rally extended that surge, but raised a deeper concern for Julius Ridgeway, an investment adviser at Medley Brown, a financial-advisory firm in Jackson, Miss.

Ridgeway said the rally showed that investors believe the economy still needs Fed's help, even after more than two years of modest economic growth.

"The market wants the economy to be healthy and on life support, and it can't have both over the long term," he said.

The Fed's bond buying is designed to keep interest rates low, with the goal of stimulating the economy by encouraging borrowing and lending.

Chairman Ben Bernanke and other voting members of the Fed telegraphed throughout the summer that the central bank was considering pulling back on the program, if the economy was healthy enough.

Now, with the Fed delaying its pullback, the market could enter a new period of uncertainty, rarely good for sustaining a stock rally.

The market is back to its mentality in May, when investors were trying to parse every data point from the Fed to figure out what it was planning to do, said Wayne Wilbanks, chief investment officer at Wilbanks, Smith, Thomas in Norfolk, Va., who manages about $2.4 billion in assets.

"The Fed buttered the market up. It was a done deal," he said. "It was a huge policy mistake."

The Fed also cut its economic growth forecasts for this year and 2014. Bernanke warned that the upcoming debt ceiling and budget fights between the White House and Congress "may involve additional risks to financial markets and to the broader economy."

On Thursday, the Standard & Poor's 500 index fell three points, or 0.2 percent, to 1,722.34. The Dow Jones industrial average slipped 40 points, or 0.3 percent, to 15,636.55.

The Nasdaq composite index rose six points, or 0.2 percent, to 3,789.38, helped by Apple's stock price.

The price of gold surged $61.70, or 4.7 percent, to $1,369.30 an ounce.

The yield on the 10-year Treasury note rose to 2.75 percent from 2.69 percent late Wednesday.

Despite Thursday's minor pull back, September has been great for the market. Stocks are on pace to have their best month in nearly two years.

The NYSE DOW closed LOWER ▼ -40.39 points or ▼ -0.26% on Thursday, 19 September 2013
Symbol …........Last ......Change.....
Dow_Jones 15636.55 ▼ -40.39 ▼ -0.26%
Nasdaq___ 3789.38 ▲ 5.74 ▲ 0.15%
S&P_500__ 1722.34 ▼ -3.18 ▼ -0.18%
30_Yr_Bond 3.805 ▲ 0.05 ▲ 1.33%

NYSE Volume 4,047,692,750
Nasdaq Volume 1,742,764,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6625.39 ▲ 66.57 ▲ 1.01%
DAX_____ 8694.18 ▲ 58.12 ▲ 0.67%
CAC_40__ 4206.04 ▲ 35.64 ▲ 0.85%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5288.6 ▲ 58.2 ▲ 1.11%
Shanghai_Comp 2191.85 ▲ 6.29 ▲ 0.29%
Taiwan_Weight 8209.18 ▼ -40.6 ▼ -0.49%
Nikkei_225____ 14766.18 ▲ 260.82 ▲ 1.80%
Hang_Seng____ 23502.51 ▲ 385.06 ▲ 1.67%
Strait_Times___ 3251.78 ▲ 57.93 ▲ 1.81%
NZX_50_Index__ 4753.04 ▲ 49.21 ▲ 1.05%

http://finance.yahoo.com/news/stock-market-slips-record-setting-202626417.html

Stock market slips after record-setting day

Stock market slips after record-setting day; Gold surges

By Ken Sweet, AP Markets Writer

The stock market paused Thursday as investors tried to figure out what to do next following the Federal Reserve's decision to hold steady on its stimulus for the economy.

The Dow Jones industrial average and Standard & Poor's 500 index pulled back from their record highs the day before. Gold, historically a haven for nervous investors, had its biggest one-day jump since the onset of the financial crisis in September 2008.

Many investors had expected the central bank scale back its $85 billion in monthly bond purchases, but the Fed said it first needed to see more evidence that the economy was improving.

The question now is whether stocks can continue their strong run-up given the Fed's dimmer outlook on the economy. The stock market is up 21 percent for the year, and 155 percent since a recession low in March 2009. And, after a tough August, the S&P 500 has risen 11 of the last 13 days.

Wednesday's rally extended that surge, but raised a deeper concern for Julius Ridgeway, an investment adviser at Medley Brown, a financial-advisory firm in Jackson, Miss.

Ridgeway said the rally showed that investors believe the economy still needs Fed's help, even after more than two years of modest economic growth.

"The market wants the economy to be healthy and on life support, and it can't have both over the long term," he said.

The Fed's bond buying is designed to keep interest rates low, with the goal of stimulating the economy by encouraging borrowing and lending.

Chairman Ben Bernanke and other voting members of the Fed telegraphed throughout the summer that the central bank was considering pulling back on the program, if the economy was healthy enough.

Now, with the Fed delaying its pullback, the market could enter a new period of uncertainty, rarely good for sustaining a stock rally.

The market is back to its mentality in May, when investors were trying to parse every data point from the Fed to figure out what it was planning to do, said Wayne Wilbanks, chief investment officer at Wilbanks, Smith, Thomas in Norfolk, Va., who manages about $2.4 billion in assets.

"The Fed buttered the market up. It was a done deal," he said. "It was a huge policy mistake."

The Fed also cut its economic growth forecasts for this year and 2014. Bernanke warned that the upcoming debt ceiling and budget fights between the White House and Congress "may involve additional risks to financial markets and to the broader economy."

On Thursday, the Standard & Poor's 500 index fell three points, or 0.2 percent, to 1,722.34. The Dow Jones industrial average slipped 40 points, or 0.3 percent, to 15,636.55.

The Nasdaq composite index rose six points, or 0.2 percent, to 3,789.38, helped by Apple's stock price.

The price of gold surged $61.70, or 4.7 percent, to $1,369.30 an ounce.

The yield on the 10-year Treasury note rose to 2.75 percent from 2.69 percent late Wednesday.

Despite Thursday's minor pull back, September has been great for the market. Stocks are on pace to have their best month in nearly two years.

The Dow set an all-time high of 15,767.93 on Wednesday following the Fed's decision. The S&P also closed at a record high ”” 1,725.52

However, Wilbanks and other investors believe the market cannot go much higher, particularly with an uncertain earnings season starting in a few weeks and the looming political fights in Washington.

"We're being very careful about U.S. equities," he said.

 

[bigdog]

Source: http://finance.yahoo.com

Washington's budget fight jolted investors on Friday, reminding them that the next few weeks could bring a lot of uncertainty. Wall Street hates uncertainty.

Stocks fell in an afternoon sell-off that wiped out most of the gains from a rally earlier this week, when the Federal Reserve decided to keep its huge economic stimulus program intact.

Major indexes were mixed in morning trading, but turned lower around midday after the U.S. House of Representatives voted to defund President Barack Obama's health care law.

The vote itself wasn't a surprise, but it reminded investors that the Republican-led House and the Democratic-controlled Senate are poised for a showdown over federal spending.

The debt ceiling must be raised by Oct. 1 to avoid a government shutdown, and a potential default on payments, including debt, later in the month.

The threat of a default in August 2011 helped send global stock markets into a tailspin.

"What we've done is basically committed ourselves to two weeks of worry," said Sam Stovall, chief equity strategist at S&P Capital IQ.

Until now, September defied the worriers. The stock market has bounced backed from an August swoon, despite a calendar loaded with potential rally killers.

Fears of a conflict with Syria have faded, and Wall Street cheered when Larry Summers withdrew his name as a candidate to replace Federal Reserve chairman Ben Bernanke.

Summers, a former Treasury secretary, was viewed as more likely to rein in the Fed's stimulus program, which has kept interest rates low and boosted corporate profits.

As Middle East strife recedes from investors' minds, though, fears of budget gridlock grow.

"Geopolitics ... is much lower on the list. It's not off the list" of investor worries, said David Darst, chief investment strategist for Morgan Stanley Wealth Management. "No. 1 becomes the debt ceiling and the federal spending debate."

The Dow Jones industrial average dropped 185.46 points, or 1.2 percent, to close at 15,451.09. That was 225 points below its all-time closing high reached Sept. 18 after the Fed's announcement.

The Standard & Poor's 500 index fell 12.43 points, or 0.7 percent, to 1,709.91. All 10 industry groups in the S&P 500 fell, led lower by telecom companies and utilities.

The NYSE DOW closed LOWER ▼ -185.46 points or ▼ -1.19% on Friday, 20 September 2013
Symbol …........Last ......Change.....
Dow_Jones 15451.09 ▼ -185.46 ▼ -1.19%
Nasdaq___ 3774.73 ▼ -14.66 ▼ -0.39%
S&P_500__ 1709.91 ▼ -12.43 ▼ -0.72%
30_Yr_Bond 3.76 ▼ -0.045 ▼ -1.18%

NYSE Volume 5,376,564,500
Nasdaq Volume 2,680,678,750

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6596.43 ▼ -28.96 ▼ -0.44%
DAX_____ 8675.73 ▼ -18.45 ▼ -0.21%
CAC_40__ 4203.66 ▼ -2.38 ▼ -0.06%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5270.8 ▼ -17.8 ▼ -0.34%
Shanghai_Comp 2191.85 ▲ 6.29 ▲ 0.29%
Taiwan_Weight 8209.18 ▼ -40.6 ▼ -0.49%
Nikkei_225____ 14742.42 ▼ -23.76 ▼ -0.16%
Hang_Seng____ 23502.51 ▲ 385.06 ▲ 1.67%
Strait_Times___ 3237.53 ▼ -14.25 ▼ -0.44%
NZX_50_Index__ 4730.38 ▼ -22.66 ▼ -0.48%

http://finance.yahoo.com/news/stock...;_ylg=X3oDMTBhYWM1a2sxBGxhbmcDZW4tVVM-;_ylv=3

Stocks fall as investors fret over budget fight

Stocks fall as Washington budget fight becomes new No. 1 worry

By Joshua Freed, AP Business Writer

Washington's budget fight jolted investors on Friday, reminding them that the next few weeks could bring a lot of uncertainty. Wall Street hates uncertainty.

Stocks fell in an afternoon sell-off that wiped out most of the gains from a rally earlier this week, when the Federal Reserve decided to keep its huge economic stimulus program intact.

Major indexes were mixed in morning trading, but turned lower around midday after the U.S. House of Representatives voted to defund President Barack Obama's health care law.

The vote itself wasn't a surprise, but it reminded investors that the Republican-led House and the Democratic-controlled Senate are poised for a showdown over federal spending.

The debt ceiling must be raised by Oct. 1 to avoid a government shutdown, and a potential default on payments, including debt, later in the month.

The threat of a default in August 2011 helped send global stock markets into a tailspin.

"What we've done is basically committed ourselves to two weeks of worry," said Sam Stovall, chief equity strategist at S&P Capital IQ.

Until now, September defied the worriers. The stock market has bounced backed from an August swoon, despite a calendar loaded with potential rally killers.

Fears of a conflict with Syria have faded, and Wall Street cheered when Larry Summers withdrew his name as a candidate to replace Federal Reserve chairman Ben Bernanke.

Summers, a former Treasury secretary, was viewed as more likely to rein in the Fed's stimulus program, which has kept interest rates low and boosted corporate profits.

As Middle East strife recedes from investors' minds, though, fears of budget gridlock grow.

"Geopolitics ... is much lower on the list. It's not off the list" of investor worries, said David Darst, chief investment strategist for Morgan Stanley Wealth Management. "No. 1 becomes the debt ceiling and the federal spending debate."

The Dow Jones industrial average dropped 185.46 points, or 1.2 percent, to close at 15,451.09. That was 225 points below its all-time closing high reached Sept. 18 after the Fed's announcement.

The Standard & Poor's 500 index fell 12.43 points, or 0.7 percent, to 1,709.91. All 10 industry groups in the S&P 500 fell, led lower by telecom companies and utilities.

Even with the decline, the S&P 500 index is up 4.8 percent for the month, and 20 percent this year.

In corporate news, BlackBerry plunged $1.79, or 17 percent, to $8.72 on the Nasdaq after announcing a loss of nearly $1 billion and layoffs of 4,500 workers. The company's phones have been eclipsed by phones from Apple and Samsung.

Apple fell $4.89, or 1 percent, to close at $467.40 as its newest iPhone debuted at stores.

Darden, the struggling parent of Olive Garden and Red Lobster, fell $3.52, or 7 percent, to $45.78 after posting a much lower quarterly profit and saying its president and chief operating officer will retire. Sales fell at its two flagship restaurant chains despite efforts to renew menus and advertising.

Two new stocks had strong debuts. Tech security company FireEye surged $16, or 80 percent, to end at $36, and artificial intelligence company Rocket Fuel rose $27, or 93 percent, to $56.10.

The yield on the 10-year Treasury note fell to 2.74 percent, from 2.76 percent on Thursday.

1493

 

[bigdog]

Source: http://finance.yahoo.com

Concerns about the strength of the economy and the potential for a budget fight in Washington pushed down the stock market Monday.

The Dow Jones industrial average and the Standard & Poor's 500 index fell for a third straight day.

Investors initially cheered the Federal Reserve's decision last Wednesday to keep its huge stimulus program in place. But they've since focused on the central bank's gloomier outlook for growth.

William Dudley, the President of the Fed's New York Branch said Monday that while the economy was improving, "the headwinds" created by the financial crisis were only easing slowly.

"At first blush (the stimulus) looks positive," said Kate Warne, an investment strategist at Edward Jones, a financial advisor. "But at second blush, it says conditions weren't as strong as we were previously thinking. Markets are now responding to that."

The Dow jumped 147 points last Wednesday to close at an all-time high. But the gain from that rally has been erased.

On Monday, the S&P 500 index dropped 8.07 points, or 0.5 percent, to close at 1,701.84. The index was fractionally lower than its level before the Fed's decision last Wednesday.

The Dow fell 49.71 points, or 0.3 percent, to 15,401.38 The Nasdaq composite fell 9.44 points, or 0.3 percent, to 3,765.29.

Financial stocks fell the most among the 10 industrial groups in the S&P 500 index. Investors sold financial stocks on concerns that their earnings would be hurt by lower trading volumes of bonds and foreign currencies.

Utilities were the best performing industry group in the S&P 500 index, as investors sought less risky places to put their money.

The threat of a looming political showdown over the budget also weighed on investors.

The debt ceiling must be raised by Oct. 1 to avoid a government shutdown, and a potential default on payments, including debt, later in the month.

The NYSE DOW closed LOWER ▼ -49.71 points or ▼ -0.32% on Monday, 23 September 2013
Symbol …........Last ......Change.....
Dow_Jones 15401.38 ▼ -49.71 ▼ -0.32%
Nasdaq___ 3765.29 ▼ -9.44 ▼ -0.25%
S&P_500__ 1701.84 ▼ -8.07 ▼ -0.47%
30_Yr_Bond 3.742 ▼ -0.018 ▼ -0.48%

NYSE Volume 3,429,507,000
Nasdaq Volume 1,696,822,120

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6557.37 ▼ -39.06 ▼ -0.59%
DAX_____ 8635.29 ▼ -40.44 ▼ -0.47%
CAC_40__ 4172.08 ▼ -31.58 ▼ -0.75%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5245.8 ▼ -25 ▼ -0.47%
Shanghai_Comp 2221.04 ▲ 29.19 ▲ 1.33%
Taiwan_Weight 8292.83 ▲ 83.65 ▲ 1.02%
Nikkei_225____ 14742.42 ▼ -23.76 ▼ -0.16%
Hang_Seng____ 23371.54 ▼ -130.97 ▼ -0.56%
Strait_Times___ 3214.25 ▼ -23.28 ▼ -0.72%
NZX_50_Index__ 4701.37 ▼ -29 ▼ -0.61%

http://finance.yahoo.com/news/stocks-fall-concern-economy-budget-195903953.html

Stocks fall on concern about economy, budget fight

US stocks fall as investors weigh economy and looming budget fight; banks lead drop

By Steve Rothwell, Markets Writer

Concerns about the strength of the economy and the potential for a budget fight in Washington pushed down the stock market Monday.

The Dow Jones industrial average and the Standard & Poor's 500 index fell for a third straight day.

Investors initially cheered the Federal Reserve's decision last Wednesday to keep its huge stimulus program in place. But they've since focused on the central bank's gloomier outlook for growth.

William Dudley, the President of the Fed's New York Branch said Monday that while the economy was improving, "the headwinds" created by the financial crisis were only easing slowly.

"At first blush (the stimulus) looks positive," said Kate Warne, an investment strategist at Edward Jones, a financial advisor. "But at second blush, it says conditions weren't as strong as we were previously thinking. Markets are now responding to that."

The Dow jumped 147 points last Wednesday to close at an all-time high. But the gain from that rally has been erased.

On Monday, the S&P 500 index dropped 8.07 points, or 0.5 percent, to close at 1,701.84. The index was fractionally lower than its level before the Fed's decision last Wednesday.

The Dow fell 49.71 points, or 0.3 percent, to 15,401.38 The Nasdaq composite fell 9.44 points, or 0.3 percent, to 3,765.29.

Financial stocks fell the most among the 10 industrial groups in the S&P 500 index. Investors sold financial stocks on concerns that their earnings would be hurt by lower trading volumes of bonds and foreign currencies.

Citigroup fell $1.64, or 3 percent, to $49.57 after the Financial Times reported that the bank had suffered a "significant decline" in trading revenues that would crimp its earnings.

Goldman Sachs, which began trading on the Dow Monday, also fell. The stock slipped $4.50, or 3 percent, to $165.20.

Utilities were the best performing industry group in the S&P 500 index, as investors sought less risky places to put their money.

The threat of a looming political showdown over the budget also weighed on investors.

The U.S. House of Representatives voted to defund President Barack Obama's health care law on Friday, a gesture that reminded Wall Street that the Republican-led House and the Democratic-controlled Senate are poised for a showdown over spending.

The debt ceiling must be raised by Oct. 1 to avoid a government shutdown, and a potential default on payments, including debt, later in the month.

"There seems to be a higher probability there will be more of a battle over that," said Scott Wren a senior equity strategist at Wells Fargo Advisors. "That could inject some volatility into the market."

Apple rose the most in the S&P 500 after the company said shopers snapped up 9 million of its newest iPhones following a rollout of the devices on Friday. The company's stock climbed $23.23, or 5 percent, to $490.60.

Shares of the troubled smartphone maker Blackberry rose 1.1 percent to $8.82 after financial company Fairfax Financial Holdings offered to buy the company in a deal valued at $4.7 billion.

The company's stock had been trading about 5 percent lower before the deal was announced. Blackberry plunged Friday after the company announced a loss of nearly $1 billion and layoffs of 4,500 workers.

Nike and Visa, along with Goldman, also began trading on the 30-member Dow on Monday. They replace Alcoa, Bank of America and Hewlett-Packard. The changes won't disrupt the level of the Dow.

The blue-chip index is up 17.5 percent this year, while the S&P 500 is up 19 percent. If the S&P 500 closed the year at its current level, it would log its best gain since 2009, when it rose 23 percent.

In government bond trading, the yield on the 10-year Treasury note fell to 2.70 from 2.74 percent late Friday.

In commodities trading, the price of oil fell $1.16, or 1.1 percent, to $103.59 a barrel. The price of gold fell $5.50, or 0.4 percent, to $1,327 an ounce.

The dollar rose against the euro and fell against the Japanese yen.

 

[bigdog]

Source: http://finance.yahoo.com

Wall Street couldn't shrug off doubts about the economy and government gridlock on Tuesday.

Mixed economic reports and concern about a government shutdown dragged stocks lower in the final half-hour of trading. They had been positive most of the day.

The modest losses extended the losing streak for the Standard & Poor's 500 index to four days. It was the longest run of declines in a month. The Dow Jones industrial average also dropped for a fourth straight day.

Investors struggled with conflicting news about the economy on Tuesday. One report showed that home prices in July rose the most in more than seven years. Another showed that Americans' confidence in the economy slipped in September.

Investors are searching for direction after the Federal Reserve's surprise decision last Wednesday to keep its stimulus program intact. They had expected a reduction in the Fed's $85 billion in monthly bond purchases. Investors are now parsing economic reports and comments from Fed officials to gauge the central bank's next move.

Some are also nervous about political gridlock in Washington. They were concerned that the federal government could shut down because Washington lawmakers appear to be making little progress in budget talks.

"A government shutdown starting next week is looking increasingly likely," said Jim Russell, a regional investment director at U.S. Bank. "That will not be welcomed by the capital markets."

But Brad Sorensen, director of market and sector research at Charles Schwab, thought that worries about a government shutdown would ultimately be short-lived.

"Investors are becoming a little bit immune to the games that Washington has started to play," Sorensen said. "Investors with a stronger stomach should probably buy the dip."

Stocks, for example, plummeted in the summer of 2011 as lawmakers wrangled about raising the debt ceiling. The market also sagged in October last year before the Presidential elections, on concerns that a divided government would be unable to agree on tax reform. Each time though, backed by the Fed's economic stimulus, the market came back stronger.

After falling 2 percent in October of last year, the Standard & Poor's 500 index rose for seven straight months, gaining 15 percent.

On Tuesday, the Dow closed down 66 points, 0.4 percent, to 15,334. The S&P 500 index fell four points, or 0.3 percent, to 1,697. The Nasdaq composite, however, edged up three points, or 0.1 percent, to 3,768.

Stocks edged lower in early trading before moving modestly higher in the late morning and afternoon. Those gains then fizzled out at the end of trading.

They S&P 500 index is just 28 points below its all-time high reached last Wednesday, when investors were initially thrilled that the Fed extended its economic stimulus. Since then, the market has fallen each day as doubts emerge about the outlook for the economy, and budget negotiations.

The NYSE DOW closed LOWER ▼ -66.79 points or ▼ -0.43% on Tuesday, 24 September 2013
Symbol …........Last ......Change.....
Dow_Jones 15334.59 ▼ -66.79 ▼ -0.43%
Nasdaq___ 3768.25 ▲ 2.97 ▲ 0.08%
S&P_500__ 1697.42 ▼ -4.42 ▼ -0.26%
30_Yr_Bond 3.67 ▼ -0.07 ▼ -1.87%

NYSE Volume 3,559,487,250
Nasdaq Volume 1,784,987,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6571.46 ▲ 14.09 ▲ 0.21%
DAX_____ 8664.6 ▲ 29.31 ▲ 0.34%
CAC_40__ 4195.61 ▲ 23.53 ▲ 0.56%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5229.5 ▼ -16.3 ▼ -0.31%
Shanghai_Comp 2207.53 ▼ -13.51 ▼ -0.61%
Taiwan_Weight 8299.12 ▲ 6.29 ▲ 0.08%
Nikkei_225____ 14732.61 ▼ -9.81 ▼ -0.07%
Hang_Seng____ 23179.04 ▼ -192.5 ▼ -0.82%
Strait_Times___ 3212.19 ▼ -2.06 ▼ -0.06%
NZX_50_Index__ 4710.59 ▲ 9.21 ▲ 0.20%

http://finance.yahoo.com/news/stocks-fall-fourth-day-210704066.html

Stocks fall for a fourth day

Stocks fall for a fourth day as investors worry about Washington and try to figure out the Fed

By Steve Rothwell, Markets Writer

Wall Street couldn't shrug off doubts about the economy and government gridlock on Tuesday.

Mixed economic reports and concern about a government shutdown dragged stocks lower in the final half-hour of trading. They had been positive most of the day.

The modest losses extended the losing streak for the Standard & Poor's 500 index to four days. It was the longest run of declines in a month. The Dow Jones industrial average also dropped for a fourth straight day.

Investors struggled with conflicting news about the economy on Tuesday. One report showed that home prices in July rose the most in more than seven years. Another showed that Americans' confidence in the economy slipped in September.

Investors are searching for direction after the Federal Reserve's surprise decision last Wednesday to keep its stimulus program intact. They had expected a reduction in the Fed's $85 billion in monthly bond purchases. Investors are now parsing economic reports and comments from Fed officials to gauge the central bank's next move.

Some are also nervous about political gridlock in Washington. They were concerned that the federal government could shut down because Washington lawmakers appear to be making little progress in budget talks.

"A government shutdown starting next week is looking increasingly likely," said Jim Russell, a regional investment director at U.S. Bank. "That will not be welcomed by the capital markets."

But Brad Sorensen, director of market and sector research at Charles Schwab, thought that worries about a government shutdown would ultimately be short-lived.

"Investors are becoming a little bit immune to the games that Washington has started to play," Sorensen said. "Investors with a stronger stomach should probably buy the dip."

Stocks, for example, plummeted in the summer of 2011 as lawmakers wrangled about raising the debt ceiling. The market also sagged in October last year before the Presidential elections, on concerns that a divided government would be unable to agree on tax reform. Each time though, backed by the Fed's economic stimulus, the market came back stronger.

After falling 2 percent in October of last year, the Standard & Poor's 500 index rose for seven straight months, gaining 15 percent.

On Tuesday, the Dow closed down 66 points, 0.4 percent, to 15,334. The S&P 500 index fell four points, or 0.3 percent, to 1,697. The Nasdaq composite, however, edged up three points, or 0.1 percent, to 3,768.

Stocks edged lower in early trading before moving modestly higher in the late morning and afternoon. Those gains then fizzled out at the end of trading.

Phone company stocks were the biggest decliners among the 10 industry groups that form the S&P 500. Industrial stocks were the biggest gainers.

Before the market opened, a survey showed that home prices rose the most since February 2006. A revival in housing has been one of the bright spots for the economy.

In another key economic gauge, the Conference Board, a New York-based private research group, said that its consumer confidence index dropped to 79.7 in September, down from August's 81.8.

Consumers' confidence is closely watched because their spending accounts for 70 percent of U.S. economic activity. Confidence has grown since the Great Recession, but it hasn't hit a reading of 90, which typically accompanies a healthy economy.

They S&P 500 index is just 28 points below its all-time high reached last Wednesday, when investors were initially thrilled that the Fed extended its economic stimulus. Since then, the market has fallen each day as doubts emerge about the outlook for the economy, and budget negotiations.

In government bond trading, the yield on the 10-year Treasury note rose fell as investors bought bonds. The yield dropped from 2.70 percent late Monday to 2.66 percent, its lowest level in six weeks. The yield on the note is a benchmark for rates of consumer loans.

Among stocks making big moves:

”” Software company Red Hat fell $6.20, or 12 percent, to $46.73 after it reported lower-than-expected quarterly billings and issued disappointing revenue forecasts.

””Carnival fell $2.86, or 8 percent, to $34.54 after the cruise ship operator warned revenue could drop more than its prior forecast.

”” Applied Materials, a manufacturer of chip-making equipment, rose $1.45, or 9 percent, to $17.45 after it agreed to acquire a rival.

”” Facebook rose $1.26, or 3 percent, to $48.45 after Citigroup upgraded the company's stock to a "buy" recommendation from "neutral." Facebook should continue to grow, helped by increasing advertising revenue contributions from its mobile website, Citigroup said.

 

[bigdog]

Source: http://finance.yahoo.com

Wal-Mart spooked the stock market Wednesday ”” helping push stocks lower for a fifth straight day.

The Dow Jones industrial average fell 61 points, or 0.4 percent, to 15,273.26. The Dow was dragged down by Wal-Mart after Bloomberg News reported that the world's biggest retailer is cutting orders with suppliers as unsold merchandise piles up.

Wal-Mart spokesman Dave Tovar said the report was misleading and that in some categories, the discounter was ordering more, and in other areas it was ordering less.

"This is business as usual," Tovar said, noting that it was part of an ongoing process of managing the seasonality of the business based on consumer demand.

Wal-Mart fell $1.10, or 1.5 percent, to $74.65, taking the rest of the market with it.

The Standard & Poor's 500 index fell five points, or 0.3 percent, to 1,692.77. Its five-day losing streak is the longest this year.

The Nasdaq composite lost seven points, or 0.2 percent, to 3,761.10.

Worries about the economy and the growing possibility of a government shutdown also continue to weigh on investors' minds. In just a week, the mood of investors has shifted from giddiness over more Federal Reserve stimulus to concern that that a government shutdown could harm the fragile U.S. economic recovery.

Two financial deadlines for the U.S. government loom. Congress needs to pass a funding bill to keep the government operating after Oct. 1, when the Federal government's new fiscal year starts. There is also the issue of the nation's debt ceiling, which needs to be raised before Oct. 17, Treasury Secretary Jacob Lew told Congress in a letter Wednesday.

The Republican-controlled House of Representatives has passed a temporary spending bill and a vote in the Democrat-controlled Senate is expected later this week. However, a conflict between the two parties over funding the Affordable Care Act, also known as "Obamacare," has yet to be resolved. Both chambers of Congress have yet to address the issue of the debt ceiling.

"The action over the last few days has been far more tied to the intractably of Congress and the president than the concerns about what the Federal Reserve is going to do next," said Jack Ablin, chief investment officer at BMO Private Bank, which manages $66 billion in assets.

Ablin said investors have bad memories from August 2011, the last time Congress and President Obama fought over the debt ceiling and the budget, which ultimately led Standard & Poor's to downgrade the credit rating of the U.S.

Although the U.S. and Europe are in better shape two years later, there are concerns about real damage to the economy if the budget battle turns ugly. U.S. economic growth slowed considerably in the third quarter of 2011, the same quarter as the downgrade. The slowdown was caused partly by a drop in non-defense-related spending.

The Dow went through nearly three weeks of triple-digit gains and losses during that month, a rough ride that made even hardened Wall Street traders nauseous

The NYSE DOW closed LOWER ▼ -61.33 points or ▼ -0.40% on Wednesday, 25 September 2013
Symbol …........Last ......Change.....
Dow_Jones 15273.26 ▼ -61.33 ▼ -0.40%
Nasdaq___ 3761.1 ▼ -7.16 ▼ -0.19%
S&P_500__ 1692.77 ▼ -4.65 ▼ -0.27%
30_Yr_Bond 3.648 ▼ -0.024 ▼ -0.65%

NYSE Volume 3,403,604,500
Nasdaq Volume 1,796,439,120

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6551.53 ▼ -19.93 ▼ -0.30%
DAX_____ 8665.63 ▲ 1.03 ▲ 0.01%
CAC_40__ 4195.35 ▼ -0.26 ▼ -0.01%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5270.1 ▲ 40.6 ▲ 0.78%
Shanghai_Comp 2198.52 ▼ -9.02 ▼ -0.41%
Taiwan_Weight 8283.9 ▼ -15.22 ▼ -0.18%
Nikkei_225____ 14620.53 ▼ -112.08 ▼ -0.76%
Hang_Seng____ 23209.63 ▲ 30.59 ▲ 0.13%
Strait_Times___ 3211.75 ▼ -2.5 ▼ -0.08%
NZX_50_Index__ 4764.72 ▲ 54.14 ▲ 1.15%

http://www.usnews.com/news/business...tocks-little-changed-after-4-days-of-declines

Wal-Mart, Washington worries whack stock market

By KEN SWEET, Associated Press

NEW YORK (AP) ”” Wal-Mart spooked the stock market Wednesday ”” helping push stocks lower for a fifth straight day.

The Dow Jones industrial average fell 61 points, or 0.4 percent, to 15,273.26. The Dow was dragged down by Wal-Mart after Bloomberg News reported that the world's biggest retailer is cutting orders with suppliers as unsold merchandise piles up.

Wal-Mart spokesman Dave Tovar said the report was misleading and that in some categories, the discounter was ordering more, and in other areas it was ordering less.

"This is business as usual," Tovar said, noting that it was part of an ongoing process of managing the seasonality of the business based on consumer demand.

Wal-Mart fell $1.10, or 1.5 percent, to $74.65, taking the rest of the market with it.

The Standard & Poor's 500 index fell five points, or 0.3 percent, to 1,692.77. Its five-day losing streak is the longest this year.

The Nasdaq composite lost seven points, or 0.2 percent, to 3,761.10.

Worries about the economy and the growing possibility of a government shutdown also continue to weigh on investors' minds. In just a week, the mood of investors has shifted from giddiness over more Federal Reserve stimulus to concern that that a government shutdown could harm the fragile U.S. economic recovery.

Two financial deadlines for the U.S. government loom. Congress needs to pass a funding bill to keep the government operating after Oct. 1, when the Federal government's new fiscal year starts. There is also the issue of the nation's debt ceiling, which needs to be raised before Oct. 17, Treasury Secretary Jacob Lew told Congress in a letter Wednesday.

The Republican-controlled House of Representatives has passed a temporary spending bill and a vote in the Democrat-controlled Senate is expected later this week. However, a conflict between the two parties over funding the Affordable Care Act, also known as "Obamacare," has yet to be resolved. Both chambers of Congress have yet to address the issue of the debt ceiling.

"The action over the last few days has been far more tied to the intractably of Congress and the president than the concerns about what the Federal Reserve is going to do next," said Jack Ablin, chief investment officer at BMO Private Bank, which manages $66 billion in assets.

Ablin said investors have bad memories from August 2011, the last time Congress and President Obama fought over the debt ceiling and the budget, which ultimately led Standard & Poor's to downgrade the credit rating of the U.S.

Although the U.S. and Europe are in better shape two years later, there are concerns about real damage to the economy if the budget battle turns ugly. U.S. economic growth slowed considerably in the third quarter of 2011, the same quarter as the downgrade. The slowdown was caused partly by a drop in non-defense-related spending.

The Dow went through nearly three weeks of triple-digit gains and losses during that month, a rough ride that made even hardened Wall Street traders nauseous.

"All we're doing now is worrying," Ablin said.

Wall Street is also looking to next Friday, Oct. 4, when investors get the September jobs report. If hiring is strong enough, the Federal Reserve could decide to start pulling back on its economic stimulus at a two-day policy meeting later in the month.

At the end of its last meeting on Sept. 18, traders had expected a small cut in the Fed's $85 billion monthly bond purchases, which are aimed at keeping long-term interest rates low to encourage borrowing. When the Fed kept its bond-buying intact, the Dow and S&P 500 index soared to all-time highs. Wall Street celebrated that the central bank would keep borrowing rates as low as possible.

But the Fed's decision also left traders worried that the economy wasn't healthy enough to grow without the Fed's help.

Investors did get an unexpectedly positive August durable goods report on Wednesday. Orders for long-lasting manufactured goods rose 0.1 percent last month, following an 8.1 percent decline in July.

Among stocks making big moves:

JC Penney fell $1.78, or 15 percent, to $10.12, as more Wall Street analysts continued to downgrade the department store chain's outlook. An analyst at JPMorgan Chase said JC Penney might right out of cash by next year.

Mako Surgical soared $13.29, or 82 percent, to $29.46 after medical technology company Stryker said it would buy Mako for $1.65 billion, or $30 per share.

Ascena Retail Group shares jumped $2.74, or 16 percent, to $20.06. The parent company of Lane Bryant, Dressbarn and Maurices, reported results that were significantly better than financial analysts expected in its most recent quarter.

 

[bigdog]

Source: http://finance.yahoo.com

The S&P 500 and Dow snapped five-day losing streaks on Thursday on positive job market data but gains were limited as investors worried if Washington lawmakers would pass bills to avoid a government shutdown and possible U.S. debt default on time.

Initial claims for state unemployment benefits dropped last week near a six-year low, the Labor Department said, which could bode well for employers adding workers to their payrolls. Other data on housing and consumer prices were less positive signs of the recovery.

But the encouraging jobless claims data comes shortly before September's unemployment report, which will be important input for the Federal Reserve as it decides when to change monetary policy.

"If today's number was a good number, that means when we see the job report on October 4, that number ought to be pretty strong," said Phil Orlando, chief equity market strategist at Federated Investors in New York.

"That's going to give us another clue as to the underlying strength of the labor market, which was one of the reasons the Federal Reserve chose not to commence the taper."

Consumer discretionary shares gave the biggest boost to the S&P 500, which was up for the first session since the September 18 rally on the Fed's decision to keep its stimulus program unchanged for now. The S&P consumer discretionary index <.SPLRCD> rose 0.9 percent.

The Dow Jones industrial average <.DJI> was up 55.04 points, or 0.36 percent, at 15,328.30. The Standard & Poor's 500 Index <.SPX> was up 5.90 points, or 0.35 percent, at 1,698.67. The Nasdaq Composite Index <.IXIC> was up 26.33 points, or 0.70 percent, at 3,787.43.

The Dow and S&P 500 rose after five straight sessions of losses, while the Nasdaq closed just shy of a high last seen about 13 years ago.

In Washington, House Republicans refused to give in to President Barack Obama's demands for straightforward bills to keep the government running beyond September 30 and to increase borrowing authority to avoid a historic default.

Congress, struggling to avert a government shutdown next week, was warned by the Obama administration that the Treasury was quickly running out of funds to pay government bills and could soon face a damaging debt default.

Another threat to the recovering economy was the prospect of federal agencies shutting down beginning on Tuesday with the new fiscal year unless Congress comes up with emergency funds.


The NYSE DOW closed HIGHER ▲ 55.04 points or ▲ 0.36% on Thursday, 26 September 2013
Symbol …........Last ......Change.....
Dow_Jones 15328.3 ▲ 55.04 ▲ 0.36%
Nasdaq___ 3787.43 ▲ 26.33 ▲ 0.70%
S&P_500__ 1698.67 ▲ 5.9 ▲ 0.35%
30_Yr_Bond 3.69 ▲ 0.042 ▲ 1.15%

NYSE Volume 3,038,046,750
Nasdaq Volume 1,788,966,380

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6565.59 ▲ 14.06 ▲ 0.21%
DAX_____ 8664.1 ▼ -1.53 ▼ -0.02%
CAC_40__ 4186.72 ▼ -8.63 ▼ -0.21%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5288.2 ▲ 18.1 ▲ 0.34%
Shanghai_Comp 2155.81 ▼ -42.71 ▼ -1.94%
Taiwan_Weight 8184.68 ▼ -99.22 ▼ -1.20%
Nikkei_225____ 14799.12 ▲ 178.59 ▲ 1.22%
Hang_Seng____ 23125.03 ▼ -84.6 ▼ -0.36%
Strait_Times___ 3243.29 ▲ 21.36 ▲ 0.66%
NZX_50_Index__ 4765.47 ▲ 0.75 ▲ 0.02%

http://news.yahoo.com/stock-futures-add-gains-gdp-claims-data-125316977--finance.html

Wall Street ends five-day losing streak on job data; Nike up after the bell
By Caroline Valetkevitch

NEW YORK (Reuters) - The S&P 500 and Dow snapped five-day losing streaks on Thursday on positive job market data but gains were limited as investors worried if Washington lawmakers would pass bills to avoid a government shutdown and possible U.S. debt default on time.

Initial claims for state unemployment benefits dropped last week near a six-year low, the Labor Department said, which could bode well for employers adding workers to their payrolls. Other data on housing and consumer prices were less positive signs of the recovery.

But the encouraging jobless claims data comes shortly before September's unemployment report, which will be important input for the Federal Reserve as it decides when to change monetary policy.

"If today's number was a good number, that means when we see the job report on October 4, that number ought to be pretty strong," said Phil Orlando, chief equity market strategist at Federated Investors in New York.

"That's going to give us another clue as to the underlying strength of the labor market, which was one of the reasons the Federal Reserve chose not to commence the taper."

Consumer discretionary shares gave the biggest boost to the S&P 500, which was up for the first session since the September 18 rally on the Fed's decision to keep its stimulus program unchanged for now. The S&P consumer discretionary index <.SPLRCD> rose 0.9 percent.

The Dow Jones industrial average <.DJI> was up 55.04 points, or 0.36 percent, at 15,328.30. The Standard & Poor's 500 Index <.SPX> was up 5.90 points, or 0.35 percent, at 1,698.67. The Nasdaq Composite Index <.IXIC> was up 26.33 points, or 0.70 percent, at 3,787.43.

The Dow and S&P 500 rose after five straight sessions of losses, while the Nasdaq closed just shy of a high last seen about 13 years ago.

In Washington, House Republicans refused to give in to President Barack Obama's demands for straightforward bills to keep the government running beyond September 30 and to increase borrowing authority to avoid a historic default.

Congress, struggling to avert a government shutdown next week, was warned by the Obama administration that the Treasury was quickly running out of funds to pay government bills and could soon face a damaging debt default.

Another threat to the recovering economy was the prospect of federal agencies shutting down beginning on Tuesday with the new fiscal year unless Congress comes up with emergency funds.

Among top percentage gainers on the Nasdaq, Bed Bath and Beyond rose 4.5 percent to $77.54, a day after it reported a jump in second-quarter profit as the U.S. housing market recovery spurred demand.

After the bell, shares of Nike Inc jumped 4.1 percent to $73.20 following the release of its results. It was the first earnings report of the season for the retailer as a member of the blue-chip Dow Jones industrial average. The stock ended the regular session up 2.1 percent at $70.34.

During regular trading, shares of J.C. Penney Co Inc gained 2.9 percent to $10.24 after CNBC reported its chief executive told investors he does not see the need to raise cash this year. But after the close, the stock slid 5.5 percent to $9.85 after it said it had begun a public offering of 84 million shares.

On Wednesday, the stock hit a 13-year low after Goldman Sachs said it expects sales at the troubled department store chain to improve more slowly than expected.

Among Thursday's decliners, Eli Lilly lost 3 percent to $51.04 and was among the biggest drags on the S&P 500 after its experimental cancer drug failed to improve survival among breast cancer patients without their cancer worsening in a late-stage trial.

Hertz Global shares tumbled 16.1 percent to $21.63 after the car rental company cut its full-year forecast.

For the third quarter, year-over-year S&P 500 earnings are expected to have risen 4.8 percent, down sharply from a July 1 forecast for earnings growth of 8.5 percent, according to Thomson Reuters data.

Other economic data on Thursday showed the U.S. government left unchanged its estimate for economic growth in the second quarter at 2.5 percent.

Volume totaled about 5.4 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, below the average daily closing volume of about 6.3 billion this year.

Advancers outpaced decliners on the NYSE by about 1.8 to 1 and on the Nasdaq by about 1.5 to 1.

 

[bigdog]

Source: http://finance.yahoo.com

The budget fight may be happening in Washington, but it's investors on Wall Street who keep getting hurt.

Stocks fell for the sixth day out of the last seven and ended the week with a decline. Investors focused on the risk that the government could shut down on Tuesday unless Congress agrees to a new spending bill. And even if that hurdle is cleared, the dispute is poised to continue into the middle of October as legislators debate raising the nation's borrowing limit.

There were a lot of moving parts for investors to keep track of on Friday. The U.S. Senate approved a spending bill that is already considered dead in the House of Representatives, where Republicans want changes to President Barack Obama's health care law. Obama spoke on live television during the closing minutes of trading. And investors braced for the possibility that when markets reopen on Monday, none of this will have been resolved, even though the House will be in session over the weekend.

So how should an investor get ready for next week?

"I don't know what's going to happen 15 minutes from now," said Stephen Carl, head of equity trading at The Williams Capital Group. He noted that volume on Friday was low, suggesting that some investors were waiting for more information.

Stocks moved little as Obama spoke during the final minutes of trading. He reiterated a previous vow not to negotiate with Congress under the threat of a shutdown.

The Dow Jones industrial average fell 70.06 points, or 0.5 percent, to close at 15,258.24. The Standard & Poor's 500 index fell 6.92 points, or 0.4 percent, to 1,691.75. The Nasdaq composite was down 5.83 points, or 0.15 percent, at 3,781.59.

Still, the indexes are off only about 1 percent for the week, and the S&P 500 is just 2 percent below its record high set Sept. 18.

Investors are also dealing with mixed economic signals.

On Friday, a government report showed that incomes and consumer spending grew slightly last month. The increases suggest anemic growth that is not strong enough to accelerate the economic recovery.

A survey showed that consumer confidence declined this month as Americans worried about the possible government shutdown and their own finances. The survey found that half of households expect no pay increase in the coming year.

The Federal Reserve's view last week that the economy is still weak is scaring people, said Frank Fantozzi, CEO of Planned Financial Services.

"If you keep saying things are bad, even if things are good, people are going to believe they're bad, and they're going to act accordingly," he said

The NYSE DOW closed LOWER ▼ -70.06 points or ▼ -0.46% on Friday, 27 September 2013
Symbol …........Last ......Change.....
Dow_Jones 15258.24 ▼ -70.06 ▼ -0.46%
Nasdaq___ 3781.59 ▼ -5.83 ▼ -0.15%
S&P_500__ 1691.75 ▼ -6.92 ▼ -0.41%
30_Yr_Bond 3.68 ▼ -0.01 ▼ -0.24%

NYSE Volume 3,244,914,500
Nasdaq Volume 1,671,168,120

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6512.66 ▼ -52.93 ▼ -0.81%
DAX_____ 8661.51 ▼ -2.59 ▼ -0.03%
CAC_40__ 4186.77 ▲ 0.05 ▲ 0.00%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5302.3 ▲ 14.1 ▲ 0.27%
Shanghai_Comp 2160.03 ▲ 4.22 ▲ 0.20%
Taiwan_Weight 8230.68 ▲ 46 ▲ 0.56%
Nikkei_225____ 14760.07 ▼ -39.05 ▼ -0.26%
Hang_Seng____ 23207.04 ▲ 82.01 ▲ 0.35%
Strait_Times___ 3210.18 ▲ 15.87 ▲ 0.50%
NZX_50_Index__ 4782.68 ▲ 17.21 ▲ 0.36%

http://abcnews.go.com/Business/wireStory/stocks-fall-government-shutdown-worries-20401247

Stocks Fall on Government Shutdown Worries
September 28, 2013 (AP)
By JOSHUA FREED AP Business Writer

The budget fight may be happening in Washington, but it's investors on Wall Street who keep getting hurt.

Stocks fell for the sixth day out of the last seven and ended the week with a decline. Investors focused on the risk that the government could shut down on Tuesday unless Congress agrees to a new spending bill. And even if that hurdle is cleared, the dispute is poised to continue into the middle of October as legislators debate raising the nation's borrowing limit.

There were a lot of moving parts for investors to keep track of on Friday. The U.S. Senate approved a spending bill that is already considered dead in the House of Representatives, where Republicans want changes to President Barack Obama's health care law. Obama spoke on live television during the closing minutes of trading. And investors braced for the possibility that when markets reopen on Monday, none of this will have been resolved, even though the House will be in session over the weekend.

So how should an investor get ready for next week?

"I don't know what's going to happen 15 minutes from now," said Stephen Carl, head of equity trading at The Williams Capital Group. He noted that volume on Friday was low, suggesting that some investors were waiting for more information.

Stocks moved little as Obama spoke during the final minutes of trading. He reiterated a previous vow not to negotiate with Congress under the threat of a shutdown.

The Dow Jones industrial average fell 70.06 points, or 0.5 percent, to close at 15,258.24. The Standard & Poor's 500 index fell 6.92 points, or 0.4 percent, to 1,691.75. The Nasdaq composite was down 5.83 points, or 0.15 percent, at 3,781.59.

Still, the indexes are off only about 1 percent for the week, and the S&P 500 is just 2 percent below its record high set Sept. 18.

Investors are also dealing with mixed economic signals.

On Friday, a government report showed that incomes and consumer spending grew slightly last month. The increases suggest anemic growth that is not strong enough to accelerate the economic recovery.

A survey showed that consumer confidence declined this month as Americans worried about the possible government shutdown and their own finances. The survey found that half of households expect no pay increase in the coming year.

The Federal Reserve's view last week that the economy is still weak is scaring people, said Frank Fantozzi, CEO of Planned Financial Services.

"If you keep saying things are bad, even if things are good, people are going to believe they're bad, and they're going to act accordingly," he said.

Eight out of 10 industry groups in the S&P 500 index fell. Health care and consumer discretionary stocks had small gains.

Among big stock movers:

J.C. Penney Co. shares slid $1.37, or 13 percent, to $9.05 after the struggling retailer said it would raise about $811 million through a stock offering. The shares fell as investors noted that the new shares are priced at $9.65, less than J.C. Penney's closing price of $10.42 on Thursday. Also, the growing pool of shares means investors' current stakes in the company will shrink.

United Continental Holdings Inc. fell $3.16, or 9 percent, to $30.91 after it projected third-quarter revenue below Wall Street's expectations.

Lumber Liquidators dropped $5.83, or 5 percent, to $107.13 after it disclosed that federal authorities searched its corporate offices in an action related to imports of wood flooring products.

Nike shares jumped $3.30, or 5 percent, to $73.64 after it reported a quarterly profit that was higher than analysts expected.

The yield on the 10-year Treasury fell to 2.63 percent, from 2.64 percent on Thursday.

1885

 

[bigdog]

Source: http://finance.yahoo.com

Stocks fell Monday as Wall Street worried that a budget fight in Washington could lead to an event far worse for the economy”” a failure to raise the nation's borrowing limit.

Investors pulled back from stocks as a budget standoff between Republicans and Democrats in Congress threatened to push the government into a partial shutdown for the first time in 17 years. Lawmakers have until midnight Tuesday to reach a budget deal that would keep government in full operation.

There is a simple reason why the budget battle ”” and, more importantly, an upcoming fight over the debt ceiling ”” are so crucial: the credit of the United States is the bedrock that nearly every other investment is built upon, largely due to the assumption that the nation will always pay its debts.

"The concern is government has become so polarized that if it cannot pass (a budget), there's a greater chance that the debt ceiling battle will go to the brink or possibly lead to a default," said Alec Young, global equity strategist with S&P Capital IQ.

The Dow Jones industrial average fell 128.57 points, or 0.8 percent, to close at 15,129.67. The Standard & Poor's 500 slid 10.20 points, or 0.6 percent, to 1,681.55 and the Nasdaq composite dropped 10.12 points, or 0.3 percent, to 3,771.48.

Monday's decline adds to what has been eventful September for investors. Stocks hit an all-time high on Sept. 18 after the Federal Reserve voted to keep up its economic stimulus program. But that enthusiasm vanished as Wall Street began to worry that the political bickering between Democrats and Republicans would lead to a government shutdown and crisis over the debt ceiling.

Even with the worries about a shutdown and debt ceiling, investors are still optimistic about the long-term health of the U.S. economy. The S&P 500 index rose 3 percent in September and is up 18 percent for the year.

With September behind them, investors now head into a worrisome October.

A brief shutdown wouldn't hit the economy and stock market hard. But a prolonged one, lasting two weeks, could lower the annual growth rate for the economy by 0.3 percentage point, according to a report by Macroeconomic Advisers. If a shutdown were to last the entire month, it could cut the annual growth rate by 0.7 percentage point. That is because hundreds of thousands of federal workers would go without a paycheck.

"You're putting a lot of people, at least temporarily, out of work and out of pay, and that will affect spending," said Kathy Jones, vice president of fixed income strategy at Charles Schwab. "It slows down activity on companies that depend on federal contracts."

Some investors think a shutdown could be a positive event in the long-term. The political pressure could force politicians to get down to business and negotiate ”” particularly on the issue of the debt ceiling.

The NYSE DOW closed LOWER ▼ -128.57 points or ▼ -0.84% on Monday, 30 September 2013
Symbol …........Last ......Change.....
Dow_Jones 15129.67 ▼ -128.57 ▼ -0.84%
Nasdaq___ 3771.48 ▼ -10.12 ▼ -0.27%
S&P_500__ 1681.55 ▼ -10.2 ▼ -0.60%
30_Yr_Bond 3.686 ▲ 0.005 ▲ 0.14%

NYSE Volume 3,307,165,250
Nasdaq Volume 1,865,253,750

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6462.22 ▼ -50.44 ▼ -0.77%
DAX_____ 8594.4 ▼ -67.11 ▼ -0.77%
CAC_40__ 4143.44 ▼ -43.33 ▼ -1.03%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5217.7 ▼ -84.6 ▼ -1.60%
Shanghai_Comp 2174.66 ▲ 14.64 ▲ 0.68%
Taiwan_Weight 8173.87 ▼ -56.81 ▼ -0.69%
Nikkei_225____ 14455.8 ▼ -304.27 ▼ -2.06%
Hang_Seng____ 22859.86 ▼ -347.18 ▼ -1.50%
Strait_Times___ 3167.87 ▼ -42.31 ▼ -1.32%
NZX_50_Index__ 4736.39 ▼ -46.29 ▼ -0.97%

http://finance.yahoo.com/news/stocks-fall-government-heads-toward-211329560.html

Stocks fall as government heads toward shutdown

Stocks drop as investors fear political bickering may impact growth

By Ken Sweet, AP Markets Writer

Stocks fell Monday as Wall Street worried that a budget fight in Washington could lead to an event far worse for the economy”” a failure to raise the nation's borrowing limit.

Investors pulled back from stocks as a budget standoff between Republicans and Democrats in Congress threatened to push the government into a partial shutdown for the first time in 17 years. Lawmakers have until midnight Tuesday to reach a budget deal that would keep government in full operation.

There is a simple reason why the budget battle ”” and, more importantly, an upcoming fight over the debt ceiling ”” are so crucial: the credit of the United States is the bedrock that nearly every other investment is built upon, largely due to the assumption that the nation will always pay its debts.

"The concern is government has become so polarized that if it cannot pass (a budget), there's a greater chance that the debt ceiling battle will go to the brink or possibly lead to a default," said Alec Young, global equity strategist with S&P Capital IQ.

The Dow Jones industrial average fell 128.57 points, or 0.8 percent, to close at 15,129.67. The Standard & Poor's 500 slid 10.20 points, or 0.6 percent, to 1,681.55 and the Nasdaq composite dropped 10.12 points, or 0.3 percent, to 3,771.48.

Monday's decline adds to what has been eventful September for investors. Stocks hit an all-time high on Sept. 18 after the Federal Reserve voted to keep up its economic stimulus program. But that enthusiasm vanished as Wall Street began to worry that the political bickering between Democrats and Republicans would lead to a government shutdown and crisis over the debt ceiling.

Even with the worries about a shutdown and debt ceiling, investors are still optimistic about the long-term health of the U.S. economy. The S&P 500 index rose 3 percent in September and is up 18 percent for the year.

With September behind them, investors now head into a worrisome October.

A brief shutdown wouldn't hit the economy and stock market hard. But a prolonged one, lasting two weeks, could lower the annual growth rate for the economy by 0.3 percentage point, according to a report by Macroeconomic Advisers. If a shutdown were to last the entire month, it could cut the annual growth rate by 0.7 percentage point. That is because hundreds of thousands of federal workers would go without a paycheck.

"You're putting a lot of people, at least temporarily, out of work and out of pay, and that will affect spending," said Kathy Jones, vice president of fixed income strategy at Charles Schwab. "It slows down activity on companies that depend on federal contracts."

Some investors think a shutdown could be a positive event in the long-term. The political pressure could force politicians to get down to business and negotiate ”” particularly on the issue of the debt ceiling.

"This may be good thing in the long run because it may lead to compromise," said J.J. Kinahan, chief strategist at TD Ameritrade.

Treasury Secretary Jack Lew said last week that the government would run out of borrowing authority by roughly Oct. 17. The last time the debt ceiling issue came up in August 2011, it led to Standard & Poor's downgrading the United States' credit rating. The Dow went through nearly three weeks of nauseating triple-digits moves almost daily.

"This sort of political brinkmanship is the dominant reason (the United States' credit) rating is no longer 'AAA,'" Standard & Poor's analysts Marie Cavanaugh and John Chambers wrote in a note to investors Monday.

If domestic and foreign investors begin to question whether the U.S. will pay its debts, it could throw every other investment out of alignment.

"It's a threat to the center of the global financial system," said Jake Lowery, portfolio manager at ING U.S. Investment Management.

Despite fears of default, the bond market was fairly quiet Monday. The yield on the benchmark 10-year U.S. Treasury note eased to 2.62 percent from 2.63 percent late Friday. Bond investors are in a wait-and-see mode.

They can deal with a government shutdown. However, if the political dysfunction becomes worrisome enough that it raises questions about the debt ceiling, "it might be more difficult for the bond market to absorb that," Lowery said.

 

[bigdog]

Source: http://finance.yahoo.com

Investors stayed calm on the first day of a partial shutdown of the U.S. government Tuesday and sent the stock market modestly higher.

A long-running dispute in Washington over President Barack Obama's health care law caused a deadlock over the U.S. budget, forcing about 800,000 federal workers off the job and suspending all but essential services. With the Republican-controlled House of Representatives and Democratic-controlled Senate locked in a stalemate, it was unclear how long a temporary bill needed to finance government activities would be stalled.

Despite the political rancor, investors didn't push the panic button. That suggests that, at least for now, they aren't anticipating that the stalemate will cause enough disruption in the economy to threaten a gradual U.S. recovery and a four-year bull run in the stock market.

"The trend of the economy appears to be in a positive direction," said Michael Sheldon, chief market strategist at RDM Financial Group. "Unless this really gets ugly, we think the markets should start to look ahead to what we believe should be better economic data over the next six to 12 months."

In the latest encouraging news on the economy, a private industry group reported Tuesday that U.S. manufacturing expanded at the fastest pace since April 2011 last month on stronger production and hiring.

The Dow Jones industrial average rose 62.03 points, or 0.4 percent, to 15,191.70. The Standard & Poor's 500 index gained 13.45 points, or 0.8 percent, to 1,695.00. The Nasdaq composite rose 46.50 points, or 1.2 percent, to 3,817.98.

All ten sectors of the S&P 500 rose, led by gains in health care and technology.

Merck helped lift the health care sector. The drugmaker's stock rose $1.13, or 2.4 percent, to $48.74 after it announced plans to cut another 8,500 jobs as part of a plan to reduce its annual costs by about $2.5 billion by the end of 2015.

The technology sector was given a boost by Apple, which gained $11.21, or 2.4 percent, to $487.90, after billionaire investor Carl Icahn tweeted about his dinner meeting with Apple's CEO Tim Cook. Icahn, who said he has invested $2 billion in Apple, is pushing for the company to spend $150 billion buying its own stock.

"I feel very strongly that this should be done," Icahn told CNBC in an interview. "It's a no-brainer."

The Apple board pledged in April to spend $60 billion buying back its stock through the end of 2015. About $18 billion of that commitment had been exhausted through June.

The S&P 500 index has fallen 2 percent since climbing to a record on Sept. 18, when the Federal Reserve surprised investors by saying it would continue with its economic stimulus. The index has fallen seven out of eight days leading up to the partial government shutdown.

The NYSE DOW closed HIGHER ▲ 62.03 points or ▲ 0.41% on Tuesday, 1 October 2013
Symbol …........Last ......Change.....
Dow_Jones 15191.7 ▲ 62.03 ▲ 0.41%
Nasdaq___ 3817.98 ▲ 46.5 ▲ 1.23%
S&P_500__ 1695 ▲ 13.45 ▲ 0.80%
30_Yr_Bond 3.721 ▲ 0.035 ▲ 0.95%

NYSE Volume 3,235,030,000
Nasdaq Volume 1,805,006,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6460.01 ▼ -2.21 ▼ -0.03%
DAX_____ 8689.14 ▲ 94.74 ▲ 1.10%
CAC_40__ 4196.6 ▲ 53.16 ▲ 1.28%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5206.3 ▼ -11.4 ▼ -0.22%
Shanghai_Comp 2174.66 ▲ 14.64 ▲ 0.68%
Taiwan_Weight 8187.02 ▲ 13.15 ▲ 0.16%
Nikkei_225____ 14484.72 ▲ 28.92 ▲ 0.20%
Hang_Seng____ 22859.86 ▼ -347.18 ▼ -1.50%
Strait_Times___ 3181.5 ▲ 13.63 ▲ 0.43%
NZX_50_Index__ 4743.87 ▲ 7.48 ▲ 0.16%

http://finance.yahoo.com/news/markets-rise-even-us-government-164612626.html

Markets rise even as US government shutdown starts

Investors take partial shutdown of US government in stride, send stock market higher

By Steve Rothwell, AP Markets Writer

Investors stayed calm on the first day of a partial shutdown of the U.S. government Tuesday and sent the stock market modestly higher.

A long-running dispute in Washington over President Barack Obama's health care law caused a deadlock over the U.S. budget, forcing about 800,000 federal workers off the job and suspending all but essential services. With the Republican-controlled House of Representatives and Democratic-controlled Senate locked in a stalemate, it was unclear how long a temporary bill needed to finance government activities would be stalled.

Despite the political rancor, investors didn't push the panic button. That suggests that, at least for now, they aren't anticipating that the stalemate will cause enough disruption in the economy to threaten a gradual U.S. recovery and a four-year bull run in the stock market.

"The trend of the economy appears to be in a positive direction," said Michael Sheldon, chief market strategist at RDM Financial Group. "Unless this really gets ugly, we think the markets should start to look ahead to what we believe should be better economic data over the next six to 12 months."

In the latest encouraging news on the economy, a private industry group reported Tuesday that U.S. manufacturing expanded at the fastest pace since April 2011 last month on stronger production and hiring.

The Dow Jones industrial average rose 62.03 points, or 0.4 percent, to 15,191.70. The Standard & Poor's 500 index gained 13.45 points, or 0.8 percent, to 1,695.00. The Nasdaq composite rose 46.50 points, or 1.2 percent, to 3,817.98.

All ten sectors of the S&P 500 rose, led by gains in health care and technology.

Merck helped lift the health care sector. The drugmaker's stock rose $1.13, or 2.4 percent, to $48.74 after it announced plans to cut another 8,500 jobs as part of a plan to reduce its annual costs by about $2.5 billion by the end of 2015.

The technology sector was given a boost by Apple, which gained $11.21, or 2.4 percent, to $487.90, after billionaire investor Carl Icahn tweeted about his dinner meeting with Apple's CEO Tim Cook. Icahn, who said he has invested $2 billion in Apple, is pushing for the company to spend $150 billion buying its own stock.

"I feel very strongly that this should be done," Icahn told CNBC in an interview. "It's a no-brainer."

The Apple board pledged in April to spend $60 billion buying back its stock through the end of 2015. About $18 billion of that commitment had been exhausted through June.

The S&P 500 index has fallen 2 percent since climbing to a record on Sept. 18, when the Federal Reserve surprised investors by saying it would continue with its economic stimulus. The index has fallen seven out of eight days leading up to the partial government shutdown.

"We're not jumping in with both feet but we're selectively putting money to work," said Joseph Quinlan, chief market strategist for U.S. Trust Bank of America Private Wealth Management. "On the other side of the government shutdown, you've got continued support from the Fed and a global economy that's rebounding."

Many investors still predict that the budget fight will be resolved before it spills over into a dispute about raising the nation's borrowing limit. Treasury Secretary Jack Lew said last week that the government would run out of borrowing authority by roughly Oct. 17.

The last time the borrowing limit, or debt ceiling, issue came up in August 2011, it led to a downgrade of the United States' credit rating by Standard & Poor's. The Dow went through nearly three weeks of triple-digits moves almost daily shortly thereafter.

"To some extent investors are conditioned to a certain amount of drama and if we can get the drama behind us quickly it won't be a big deal," said Dean Junkans, Chief Investment Officer for Wells Fargo Private Bank. "If this goes beyond the middle of next week, the market will get increasingly more worried about the debt ceiling."

In other stock trading, the Russell 2000, an index of small-company stocks, rose to a record level, a sign that investors are still willing to buy riskier assets despite the government slowdown.

The Russell rose 13.64 points, or 1.3 percent, to 1,087.43.

In government bond trading, the yield on the 10-year note rose to 2.65 percent from 2.61 percent late Monday.

The price of oil fell 29 cents, or 0.3 percent, to $102.04 a barrel. Gold fell $40.90, or 3 percent, to settle at $1,286.10 an ounce.

The dollar fell against the euro and the Japanese yen.

Among other stocks making big moves:

”” Walgreen rose $2.44, or 4.5 percent, to $56.24 after the drugstore chain said its fiscal fourth-quarter earnings soared 86 percent after it booked gains from its method of inventory accounting and its acquisition of a stake in European health and beauty retailer Alliance Boots.

”” Ford gained 32 cents, or 1.9 percent, to $17.19 after the automaker said that U.S. sales rose 6 percent in September, with strong car sales making up for slower sales of SUVs.

 

[bigdog]

Source: http://finance.yahoo.com

Wall Street to Washington: end the shutdown and move on.

The U.S. stock market ended lower Wednesday as traders, Europe's central banker and Wall Street CEOs urged Congress to stop the two-day government shutdown that has closed national parks, put hundreds of thousands of federal employees on furlough and forced President Barack Obama to cancel an overseas trip.

Wall Street made it clear on that the longer the budget fight drags on, the more its bankers worry about significant damage to the economy and the possibility that Congress won't allow the government to borrow more. The financial market sees that as a disastrous move that could send the U.S. into recession.

"I'm not going out there and beating my chest and saying the world is coming to an end here," said Brad McMillan, the Chief Investment Officer at Commonwealth Financial, an investment adviser. "But we face the possibility for significantly greater disruptions than the market is currently pricing in."

Republicans in the House of Representatives are insisting that Democrats negotiate over a new health care law as part of the budget talks. Senate Democrats, led by Majority Leader Harry Reid of Nevada, insist that Republicans pass a straightforward temporary funding bill with no strings attached

On Wednesday, the major indexes opened sharply lower, with U.S. lawmakers appearing unwilling to yield in their entrenched positions. After Obama summoned Congressional leaders to the White House later in the morning, the market started to recoup some of its losses, but the recovery faded throughout the afternoon.

"The markets are sending a loud message to Washington lawmakers to get their act together and resolve the budget crisis," said Peter Cardillo, chief market economist at Rockwell Global Capital.

Earlier, European Central Bank head Mario Draghi said that the partial U.S. government shutdown was a risk to economic recoveries in the U.S. and globally.

Chief executives from the nation's biggest financial firms met with Obama for more than an hour Wednesday. Referring to the potential showdown over raising the government's borrowing limit, Lloyd Blankfein, CEO of Goldman Sachs, said: "We shouldn't use threats of causing the U.S. to fail ... as a cudgel."

Treasury Secretary Jacob Lew told Congress that unless lawmakers act in time, he will run out of money to pay the nation's bills by Oct. 17. Congress must periodically raise the limit on government borrowing to keep U.S. funds flowing, a once-routine matter that has become locked in battles over the federal budget deficit.

The last time there was an impasse over the borrowing limit, in August 2011, it led to a downgrade of the United States' credit rating by Standard & Poor's and a plunge in the stock market.

The government shutdown is ill-timed because the U.S. economic recovery is still on shaky foundations.

U.S. businesses added 166,000 jobs last month, payroll company ADP said Wednesday, a level consistent with only a modest improvement in hiring. Economists polled by FactSet had forecast 180,000 jobs would be added.

"It's clear that the economy hasn't picked up steam like people were anticipating," said Kate Warne, and investment strategist at Edward Jones, an investment adviser. "Especially with the government shutdown, there's not a lot that is going to help it do so over the next couple of months."

About 800,000 federal workers were staying home again Wednesday on the second day of the shutdown, the first since the winter of 1995-96.

The Dow Jones industrial average fell as much as 147 points in the first hour of trading. It ended the day down 58.56 points, or 0.4 percent, at 15,133.14 points.

The Standard & Poor's 500 index fell 1.13 points, or 0.1 percent, to 1,693.87. The Nasdaq composite declined 2.96 points, or 0.1 percent, to 3,815.02.

Six of 10 industry sectors in the S&P 500 fell. Declines were led by the makers of consumer staples and industrial companies.

The NYSE DOW closed LOWER ▼ -58.56 points or ▼ -0.39% on Wednesday, 2 October 2013
Symbol …........Last ......Change.....
Dow_Jones 15133.14 ▼ -58.56 ▼ -0.39%
Nasdaq___ 3815.02 ▼ -2.96 ▼ -0.08%
S&P_500__ 1693.87 ▼ -1.13 ▼ -0.07%
30_Yr_Bond 3.71 ▼ -0.011 ▼ -0.30%

NYSE Volume 3,204,469,000
Nasdaq Volume 1,763,459,880

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6437.5 ▼ -22.51 ▼ -0.35%
DAX_____ 8629.42 ▼ -59.72 ▼ -0.69%
CAC_40__ 4158.16 ▼ -38.44 ▼ -0.92%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5214.9 ▲ 8.6 ▲ 0.17%
Shanghai_Comp 2174.66 ▲ 14.64 ▲ 0.68%
Taiwan_Weight 8216.52 ▲ 29.5 ▲ 0.36%
Nikkei_225____ 14170.49 ▼ -314.23 ▼ -2.17%
Hang_Seng____ 22984.48 ▲ 124.62 ▲ 0.55%
Strait_Times___ 3152.58 ▼ -28.92 ▼ -0.91%
NZX_50_Index__ 4768.87 ▲ 25 ▲ 0.53%

http://finance.yahoo.com/news/stocks-fall-fears-protracted-shutdown-204752373.html

Stocks fall as fears of protracted shutdown grow

Stocks fall; Wall Street fears damage to economy if government shutdown continues

By Steve Rothwell, AP Markets Writer

Wall Street to Washington: end the shutdown and move on.

The U.S. stock market ended lower Wednesday as traders, Europe's central banker and Wall Street CEOs urged Congress to stop the two-day government shutdown that has closed national parks, put hundreds of thousands of federal employees on furlough and forced President Barack Obama to cancel an overseas trip.

Wall Street made it clear on that the longer the budget fight drags on, the more its bankers worry about significant damage to the economy and the possibility that Congress won't allow the government to borrow more. The financial market sees that as a disastrous move that could send the U.S. into recession.

"I'm not going out there and beating my chest and saying the world is coming to an end here," said Brad McMillan, the Chief Investment Officer at Commonwealth Financial, an investment adviser. "But we face the possibility for significantly greater disruptions than the market is currently pricing in."

Republicans in the House of Representatives are insisting that Democrats negotiate over a new health care law as part of the budget talks. Senate Democrats, led by Majority Leader Harry Reid of Nevada, insist that Republicans pass a straightforward temporary funding bill with no strings attached

On Wednesday, the major indexes opened sharply lower, with U.S. lawmakers appearing unwilling to yield in their entrenched positions. After Obama summoned Congressional leaders to the White House later in the morning, the market started to recoup some of its losses, but the recovery faded throughout the afternoon.

"The markets are sending a loud message to Washington lawmakers to get their act together and resolve the budget crisis," said Peter Cardillo, chief market economist at Rockwell Global Capital.

Earlier, European Central Bank head Mario Draghi said that the partial U.S. government shutdown was a risk to economic recoveries in the U.S. and globally.

Chief executives from the nation's biggest financial firms met with Obama for more than an hour Wednesday. Referring to the potential showdown over raising the government's borrowing limit, Lloyd Blankfein, CEO of Goldman Sachs, said: "We shouldn't use threats of causing the U.S. to fail ... as a cudgel."

Treasury Secretary Jacob Lew told Congress that unless lawmakers act in time, he will run out of money to pay the nation's bills by Oct. 17. Congress must periodically raise the limit on government borrowing to keep U.S. funds flowing, a once-routine matter that has become locked in battles over the federal budget deficit.

The last time there was an impasse over the borrowing limit, in August 2011, it led to a downgrade of the United States' credit rating by Standard & Poor's and a plunge in the stock market.

The government shutdown is ill-timed because the U.S. economic recovery is still on shaky foundations.

U.S. businesses added 166,000 jobs last month, payroll company ADP said Wednesday, a level consistent with only a modest improvement in hiring. Economists polled by FactSet had forecast 180,000 jobs would be added.

"It's clear that the economy hasn't picked up steam like people were anticipating," said Kate Warne, and investment strategist at Edward Jones, an investment adviser. "Especially with the government shutdown, there's not a lot that is going to help it do so over the next couple of months."

About 800,000 federal workers were staying home again Wednesday on the second day of the shutdown, the first since the winter of 1995-96.

The Dow Jones industrial average fell as much as 147 points in the first hour of trading. It ended the day down 58.56 points, or 0.4 percent, at 15,133.14 points.

The Standard & Poor's 500 index fell 1.13 points, or 0.1 percent, to 1,693.87. The Nasdaq composite declined 2.96 points, or 0.1 percent, to 3,815.02.

Six of 10 industry sectors in the S&P 500 fell. Declines were led by the makers of consumer staples and industrial companies.

Defense companies, which rely on government contracts for a large part of their revenue, led declines for industrial companies. Raytheon fell $1.73, or 2.2 percent, to $76.08. Lockheed Martin dropped $2.42, or 1.9 percent, to $125.

The market for some of the world's safest investments ”” U.S. government bonds ”” was mostly calm Wednesday.

The yield on the U.S. 10-year Treasury note, where global investors put their money when they want minimal risk, was little changed. It traded at 2.63 percent late Wednesday, compared with 2.65 percent the day before.

But there were signs of nervousness in the market for short-term U.S. debt.

Investors have been selling off one-month T-bills that mature around the time the U.S. government is expected to hit the debt ceiling.

In mid-September, the yield on a one month was between zero and 0.01 percent. On Tuesday, the yield had jumped up to 0.1 percent. The difference between 0.01 percent and 0.1 percent may seem trivial to the average American, but in the giant world of bond investing, it raises eyebrows.

Bond market watchers said the move is because portfolio managers of money market funds, those who most often buy T-bills with extremely short maturities, don't want to be caught holding U.S. government debt that matures around the time the federal government hits the debt ceiling, and therefore cannot pay its bills.

 

[bigdog]

Source: http://finance.yahoo.com

Investors sold stocks across the board Thursday as a U.S. government shutdown dragged into a third day and the U.S. inched toward a deadline on raising the nation's borrowing limit.

The Dow Jones industrial average fell close to 200 points by late morning as Republicans and Democrats appeared no closer to ending the budget impasse. In speech President Barack Obama said there was only one way out of the shutdown: "Congress has to pass a budget that funds our government with no partisan strings attached."

Investors also got some disappointing economic news on Thursday.

The Institute of Supply Management said that sales fell sharply, new orders dipped and hiring weakened at U.S. service companies. The report covers industries including retail, construction, health care and financial services.

The stock market losses on Thursday marked an acceleration of gradual declines over the last two weeks. Stocks have fallen eight of the last 10 days as investors anticipated that negotiations over the federal budget would fail. If the shutdown persists, the weak economic recovery could falter.

Republicans in the House of Representatives, pushed by a core of tea party conservatives, are insisting that Obama accept changes to the health care law he pushed through three years ago as part of a budget bill. Obama refuses to consider any deal linking the health care law to routine legislation needed to extend government funding.

The U.S. Treasury Department said Thursday that the economy could plunge into a downturn worse than the Great Recession if Congress failed to raise the debt ceiling and the country defaulted on its debt obligations.

The U.S. missing a debt payment could cause credit markets to freeze, the value of the dollar to plummet and U.S. interest rates to skyrocket, according to the Treasury report.

A default "would be so catastrophic and such a self-inflicted wound that you can't imagine we would let it happen," said Maury Fertig, chief investment officer of Relative Value Partners. "But the fact is that every day we get closer to it the possibility increases, even though it's remote."

The Dow fell 136.66 points, or 0.9 percent, to 14,996.48, its biggest decline since Sept. 20. It was down as much as 186 earlier.

The Standard & Poor's 500 index dropped 15.21 points, or 0.9 percent, to 1,678.66. The Nasdaq composite fell 40.68 points, or 1.1 percent, to 3,774.34.

Stocks pared some of their losses in afternoon trading after the New York Times reported that the Republican House Speaker John Boehner had told his party that wouldn't let the nation default.

Lawmakers must periodically raise the nation's borrowing limit to keep U.S. funds flowing, but the once-routine matter has become a bargaining chip in battles over the federal budget deficit. Failure to raise the limit could cause the U.S. to miss payments on its debt.

Stocks also dipped briefly in afternoon trading on news that shots had been fired at the Capitol.

The NYSE DOW closed LOWER ▼ -136.66 points or ▼ -0.90% on Thursday, 3 October 2013
Symbol …........Last ......Change.....
Dow_Jones 14996.48 ▼ -136.66 ▼ -0.90%
Nasdaq___ 3774.34 ▼ -40.68 ▼ -1.07%
S&P_500__ 1678.66 ▼ -15.21 ▼ -0.90%
30_Yr_Bond 3.707 ▼ -0.003 ▼ -0.08%

NYSE Volume 3,224,199,000
Nasdaq Volume 1,835,058,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6449.04 ▲ 11.54 ▲ 0.18%
DAX_____ 8597.91 ▼ -31.51 ▼ -0.37%
CAC_40__ 4127.98 ▼ -30.18 ▼ -0.73%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5232 ▲ 17.1 ▲ 0.33%
Shanghai_Comp 2174.66 ▲ 14.64 ▲ 0.68%
Taiwan_Weight 8359.02 ▲ 142.5 ▲ 1.73%
Nikkei_225____ 14157.25 ▼ -13.24 ▼ -0.09%
Hang_Seng____ 23214.4 ▲ 229.92 ▲ 1.00%
Strait_Times___ 3144.79 ▼ -7.79 ▼ -0.25%
NZX_50_Index__ 4770.21 ▲ 1.34 ▲ 0.03%

http://finance.yahoo.com/news/stocks-fall-third-day-government-144428262.html

Stocks fall on third day of government shutdown

Stocks fall on third day of government shutdown as US edges toward debt ceiling deadline

By Steve Rothwell, AP Markets Writer

Investors sold stocks across the board Thursday as a U.S. government shutdown dragged into a third day and the U.S. inched toward a deadline on raising the nation's borrowing limit.

The Dow Jones industrial average fell close to 200 points by late morning as Republicans and Democrats appeared no closer to ending the budget impasse. In speech President Barack Obama said there was only one way out of the shutdown: "Congress has to pass a budget that funds our government with no partisan strings attached."

Investors also got some disappointing economic news on Thursday.

The Institute of Supply Management said that sales fell sharply, new orders dipped and hiring weakened at U.S. service companies. The report covers industries including retail, construction, health care and financial services.

The stock market losses on Thursday marked an acceleration of gradual declines over the last two weeks. Stocks have fallen eight of the last 10 days as investors anticipated that negotiations over the federal budget would fail. If the shutdown persists, the weak economic recovery could falter.

Republicans in the House of Representatives, pushed by a core of tea party conservatives, are insisting that Obama accept changes to the health care law he pushed through three years ago as part of a budget bill. Obama refuses to consider any deal linking the health care law to routine legislation needed to extend government funding.

The U.S. Treasury Department said Thursday that the economy could plunge into a downturn worse than the Great Recession if Congress failed to raise the debt ceiling and the country defaulted on its debt obligations.

The U.S. missing a debt payment could cause credit markets to freeze, the value of the dollar to plummet and U.S. interest rates to skyrocket, according to the Treasury report.

A default "would be so catastrophic and such a self-inflicted wound that you can't imagine we would let it happen," said Maury Fertig, chief investment officer of Relative Value Partners. "But the fact is that every day we get closer to it the possibility increases, even though it's remote."

The Dow fell 136.66 points, or 0.9 percent, to 14,996.48, its biggest decline since Sept. 20. It was down as much as 186 earlier.

The Standard & Poor's 500 index dropped 15.21 points, or 0.9 percent, to 1,678.66. The Nasdaq composite fell 40.68 points, or 1.1 percent, to 3,774.34.

Stocks pared some of their losses in afternoon trading after the New York Times reported that the Republican House Speaker John Boehner had told his party that wouldn't let the nation default.

Lawmakers must periodically raise the nation's borrowing limit to keep U.S. funds flowing, but the once-routine matter has become a bargaining chip in battles over the federal budget deficit. Failure to raise the limit could cause the U.S. to miss payments on its debt.

Stocks also dipped briefly in afternoon trading on news that shots had been fired at the Capitol.

Defense companies, which rely on government contracts for much of their revenue, fell. Lockheed Martin dropped $2.25, or 1.8 percent, to $122.80. The stock has fallen 5.4 percent in the last five trading days.

Despite the slump during the last two weeks, stocks are still close to the record levels they reached last month. The S&P 500 is up 17 percent so far this year, having climbed as much as 21 percent by Sept. 18.

A four-year bull-market for stocks has been sustained by a recovery in the housing market, improving hiring and resilient corporate earnings. Unprecedented economic stimulus from the Federal Reserve has also supported the market.

Some analysts said that investors should take advantage of any decline further price declines and add to their holdings of stocks.

"While the chances are not zero, the probability of the debt ceiling not being raised and the probability of the U.S. defaulting are about as close to zero as you can possibly get," said Scott Wren, a senior equity strategist at Wells Fargo Advisors. "I hope the market takes the bait and we get more of a sell-off here, it's just an opportunity."

The dollar dropped against the euro and the Japanese yen, continuing a recent slide. The dollar index, which measures the U.S. currency against a group of other major currencies, has declined for five days.

The Labor Department said Thursday it will not release the highly anticipated September jobs report on Friday because the government remains partly shut down.

In government bond trading, the yield on the 10-year Treasury note fell to 2.61 percent from 2.62 percent Wednesday.

Among stocks making big moves:

”” Tesla Motors fell $7.64, or 4.2 percent, to $173.31 after the electric car company had a rare downgrade from a financial analyst and on news of a fire involving one of its cars.

”” HCP fell $1.95, or 4.7 percent, to $39.82 after the real estate investment trust fired James F. Flaherty as its chairman and CEO.

 

[bigdog]

Source: http://finance.yahoo.com

Wall Street thinks Washington's gridlock could be easing.

Stocks posted modest gains Friday, driven by budding optimism among traders that Washington's bickering politicians can reach an agreement on the budget and on increasing the government's borrowing limit soon.

"Call it 'modest optimism,'" said Frank Davis, director of sales and trading at LEK Securities.

The stock market rose for just the third time in 12 days. The Dow Jones industrial average closed up 76.10 points, or 0.5 percent, at 15,072.58. The Standard & Poor's 500 index rose 11.84 points, or 0.7 percent, at 1,690.50 and the Nasdaq composite index gained 33.41 points, or 0.9 percent, at 3,807.75.

Traders aren't expecting a miracle. The rhetoric between Democrats and Republicans remains as hot as ever. But the pressure to end the shutdown and raise the debt ceiling is climbing quickly.

"The thought is that the Republicans and Democrats will soon work this out before Oct. 17," Davis said, referring to the date the Treasury Department said the government's borrowing authority would be exhausted.

On Friday, House Speaker John Boehner reemphasized that he won't let the U.S. government default on its debts. There were also reports that Boehner was looking to bring House Republicans together to pass some sort of budget compromise that would include raising the debt ceiling.

Davis noted that it's a positive sign that investors are buying stocks heading into a weekend, especially with how volatile the political climate in Washington has been.

Despite Friday's gains, the trend for the last three weeks in the stock market has been lower. The Dow is down nearly 4 percent since hitting an all-time high on Sept. 18.

While remote, the possibility of the U.S. failing to pay its bills or creditors remains a deep concern to investors.

"Credit markets could freeze, the value of the dollar could plummet, U.S. interest rates could skyrocket, the negative spillovers could reverberate around the world, and there might be a financial crisis and recession that could echo the events of 2008 or worse," the Treasury Department said in a report Thursday.

Investors went through a similar case of political brinkmanship in August 2011, which ultimately led to Standard & Poor's downgrading the United States' credit rating. The S&P 500 fell roughly 12 percent in the weeks that followed.

Because of that precedent, the political noise out of Washington has come to dominate nearly all conversations on Wall Street.

The NYSE DOW closed HIGHER ▲ 76.1 points or ▲ 0.51% on Friday, 4 October 2013
Symbol …........Last ......Change.....
Dow_Jones 15072.58 ▲ 76.1 ▲ 0.51%
Nasdaq___ 3807.75 ▲ 33.41 ▲ 0.89%
S&P_500__ 1690.5 ▲ 11.84 ▲ 0.71%
30_Yr_Bond 3.732 ▲ 0.025 ▲ 0.67%

NYSE Volume 2,793,929,750
Nasdaq Volume 1,518,676,620

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6453.88 ▲ 4.84 ▲ 0.08%
DAX_____ 8622.97 ▲ 25.06 ▲ 0.29%
CAC_40__ 4164.25 ▲ 36.27 ▲ 0.88%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5205.9 ▼ -26.1 ▼ -0.50%
Shanghai_Comp 2174.66 ▲ 14.64 ▲ 0.68%
Taiwan_Weight 8364.55 ▲ 5.53 ▲ 0.07%
Nikkei_225____ 14024.31 ▼ -132.94 ▼ -0.94%
Hang_Seng____ 23138.54 ▼ -75.86 ▼ -0.33%
Strait_Times___ 3138.08 ▼ -6.71 ▼ -0.21%
NZX_50_Index__ 4759.38 ▼ -10.83 ▼ -0.23%

http://finance.yahoo.com/news/stocks-rise-hope-dc-end-202828935.html

Stocks rise on hope that DC will end its bickering

Stocks rises on hope that Washington can reach deals on a budget and extending borrowing limit

By Ken Sweet, AP Markets Writer

Wall Street thinks Washington's gridlock could be easing.

Stocks posted modest gains Friday, driven by budding optimism among traders that Washington's bickering politicians can reach an agreement on the budget and on increasing the government's borrowing limit soon.

"Call it 'modest optimism,'" said Frank Davis, director of sales and trading at LEK Securities.

The stock market rose for just the third time in 12 days. The Dow Jones industrial average closed up 76.10 points, or 0.5 percent, at 15,072.58. The Standard & Poor's 500 index rose 11.84 points, or 0.7 percent, at 1,690.50 and the Nasdaq composite index gained 33.41 points, or 0.9 percent, at 3,807.75.

Traders aren't expecting a miracle. The rhetoric between Democrats and Republicans remains as hot as ever. But the pressure to end the shutdown and raise the debt ceiling is climbing quickly.

"The thought is that the Republicans and Democrats will soon work this out before Oct. 17," Davis said, referring to the date the Treasury Department said the government's borrowing authority would be exhausted.

On Friday, House Speaker John Boehner reemphasized that he won't let the U.S. government default on its debts. There were also reports that Boehner was looking to bring House Republicans together to pass some sort of budget compromise that would include raising the debt ceiling.

Davis noted that it's a positive sign that investors are buying stocks heading into a weekend, especially with how volatile the political climate in Washington has been.

Despite Friday's gains, the trend for the last three weeks in the stock market has been lower. The Dow is down nearly 4 percent since hitting an all-time high on Sept. 18.

While remote, the possibility of the U.S. failing to pay its bills or creditors remains a deep concern to investors.

"Credit markets could freeze, the value of the dollar could plummet, U.S. interest rates could skyrocket, the negative spillovers could reverberate around the world, and there might be a financial crisis and recession that could echo the events of 2008 or worse," the Treasury Department said in a report Thursday.

Investors went through a similar case of political brinkmanship in August 2011, which ultimately led to Standard & Poor's downgrading the United States' credit rating. The S&P 500 fell roughly 12 percent in the weeks that followed.

Because of that precedent, the political noise out of Washington has come to dominate nearly all conversations on Wall Street.

Under normal circumstances, traders would have the government's monthly jobs report to parse through on the first Friday of the month. But the shutdown has forced the Labor Department to postpone the release of September's data for at least the foreseeable future.

And few traders are talking about third quarter corporate earnings reports either, which start next week.

"The market is going to remain completely occupied by Washington until this is resolved," said Bob Doll, chief equity strategist and portfolio manager at Nuveen Asset Management, which oversees $126 billion.

Despite these concerns, Doll and other investors believe the possibility that the U.S. government would willingly default on its debt is remote.

"It's hard to really say how this is going to end, but I think it's unthinkable that it will end with a default of the U.S. government," said Steve Auth, chief investment officer at Federated Investors.

Not all parts of the market were optimistic Friday. Yields for the one-month T-bill that mature around the time the U.S. government is expected to hit its borrowing limit have risen to their highest level in a year. The yield on one-month T-bill was 0.12 percent, up sharply from 0.01 percent five days ago.

Bond market observers said that fund managers for money market funds, who primarily invest in these types of securities, have been selling short-term Treasuries. Fund managers don't want to be stuck holding U.S. government debt maturing around the time the federal government hits its borrowing limit.

Average investors have also been moving out of riskier assets as well. Roughly $300 million was pulled from stock mutual funds last week, according to fund tracking firm Lipper. It was the first time this year that mutual funds saw net outflows, Lipper said. Exchange-traded funds also saw investors head toward the exits, with $2.8 billion leaving ETFs last week.

"We have seen a pull out of (stocks) and investors moving to cash," said Kristina Hooper, head of U.S. investment strategies at Allianz Global Investors. "We're very focused on being there, holding our client's hand and helping them think about the long-term so they're not getting rattled by what is short-term event."

2480

 

[Boggo]

Stocks posted modest gains Friday, driven by budding optimism among traders that Washington's bickering politicians can reach an agreement on the budget and on increasing the government's borrowing limit soon.

"Call it 'modest optimism,'" said Frank Davis, director of sales and trading at LEK Securities.

One option based on "modest optimism" (click to expand).

 

[bigdog]

Source: http://finance.yahoo.com

Investors sent the Standard & Poor's 500 index to its lowest close in a month Monday as few signs emerged of a deal to end the U.S. government shutdown and raise the nation's borrowing limit.

Senate Democrats moved to introduce legislation to raise the nation's debt limit without the unrelated conditions Republicans have said they are seeking. The White House signaled it would accept even a brief extension in borrowing authority to prevent an unprecedented default by the United States.

On Sunday, speaker John Boehner had ruled out a vote in the House of Representatives on a straightforward bill to increase the government's borrowing without concessions from President Barack Obama.

Lawmakers have until Oct. 17 to reach a deal on increasing the nation's debt ceiling. Failure to strike a deal could cause the United States to miss payments on its debt. The Treasury warned last week that a default could push the economy into a downturn even worse than the Great Recession.

"Everything now is predicated on Washington," said Quincy Krosby, market strategist for Prudential. "That is what the market is focused on completely, getting a deal done to avoid a default."

The Standard & Poor's 500 index dropped 14.38 points, or 0.9 percent, to 1,676.12. The Dow Jones industrial average dropped 136.34 points, or 0.9 percent, to 14,936.24. The Nasdaq composite fell 37.38 points, or 1 percent, to 3,770.38.

The losses were broad. Nine of the 10 industry groups in the S&P 500 dropped. Phone companies were the only sector to advance.

Until now, the stock market has mostly moved sideways since the shutdown began at the start of the month, indicating that investors still expect lawmakers to come up with a deal. The S&P 500 is down 0.3 percent in October.

In government bond trading, the yield on the 10-year Treasury note fell to 2.63 percent from 2.65 percent. The yield has fallen close to its lowest in two months. Investors have bought Treasurys on concern that U.S. economic growth will slow as the budget impasse drags on.

There were also other signs that investors are getting gradually more nervous about the debt ceiling deadline.

The VIX index, which rises when investors are getting more concerned about stock fluctuations, rose to its highest in more than three months.

The dollar fell against the euro and the Japanese yen. The dollar index, which measures the strength of the dollar against other currencies, fell for the seventh day in nine. The gauge is close to its lowest since February.

One of the reasons stocks haven't fallen more is that some investors see the current stall as a blip rather than a change in the long-term trend. The Federal Reserve continues to keep up its unprecedented stimulus of the economy, a strategy that has helped support a four-year surge in stocks.

The stock market climbed to record levels in September after the Fed said it would keep buying $85 billion of bonds a month to support the U.S. economy. Many investors had expected the central bank to start reducing its stimulus.

Minutes from the September meeting will be published Wednesday, giving investors insight into the central bank's thinking.

"We would encourage investors with a long-time horizon to think of this as a buying opportunity," said Kristina Hooper, U.S. Head of Investment and Client Strategies at Allianz Global Investors. Many investors, who bought bonds after the financial crisis and the Great Recession, still hold too many bonds in their investment portfolios, she said.

Investors will also be keeping an eye on earnings reports. Companies start releasing financial results for the third quarter this week. S&P 500 companies are projected to report slowing earnings growth for the fourth straight quarter, according to data from S&P Capital IQ.

The NYSE DOW closed LOWER ▼ -136.34 points or ▼ -0.90% on Monday, 7 October 2013
Symbol …........Last ......Change.....
Dow_Jones 14936.24 ▼ -136.34 ▼ -0.90%
Nasdaq___ 3770.38 ▼ -37.38 ▼ -0.98%
S&P_500__ 1676.12 ▼ -14.38 ▼ -0.85%
30_Yr_Bond 3.7 ▼ -0.03 ▼ -0.80%

NYSE Volume 2,676,265,500
Nasdaq Volume 1,452,649,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6437.28 ▼ -16.6 ▼ -0.26%
DAX_____ 8591.58 ▼ -31.39 ▼ -0.36%
CAC_40__ 4165.58 ▲ 1.33 ▲ 0.03%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5160.6 ▼ -45.3 ▼ -0.87%
Shanghai_Comp 2174.66 ▲ 14.64 ▲ 0.68%
Taiwan_Weight 8333.66 ▼ -30.89 ▼ -0.37%
Nikkei_225____ 13853.32 ▼ -170.99 ▼ -1.22%
Hang_Seng____ 22973.95 ▼ -164.59 ▼ -0.71%
Strait_Times___ 3136.59 ▼ -1.49 ▼ -0.05%
NZX_50_Index__ 4756.04 ▼ -3.34 ▼ -0.07%

http://finance.yahoo.com/news/stocks-fall-government-shutdown-drags-141819333.html

Stocks fall as government shutdown drags on

Standard & Poor's 500 closes at one-month low as shutdown drags on and debt deadline nears

By Steve Rothwell, AP Markets Writer

Investors sent the Standard & Poor's 500 index to its lowest close in a month Monday as few signs emerged of a deal to end the U.S. government shutdown and raise the nation's borrowing limit.

Senate Democrats moved to introduce legislation to raise the nation's debt limit without the unrelated conditions Republicans have said they are seeking. The White House signaled it would accept even a brief extension in borrowing authority to prevent an unprecedented default by the United States.

On Sunday, speaker John Boehner had ruled out a vote in the House of Representatives on a straightforward bill to increase the government's borrowing without concessions from President Barack Obama.

Lawmakers have until Oct. 17 to reach a deal on increasing the nation's debt ceiling. Failure to strike a deal could cause the United States to miss payments on its debt. The Treasury warned last week that a default could push the economy into a downturn even worse than the Great Recession.

"Everything now is predicated on Washington," said Quincy Krosby, market strategist for Prudential. "That is what the market is focused on completely, getting a deal done to avoid a default."

The Standard & Poor's 500 index dropped 14.38 points, or 0.9 percent, to 1,676.12. The Dow Jones industrial average dropped 136.34 points, or 0.9 percent, to 14,936.24. The Nasdaq composite fell 37.38 points, or 1 percent, to 3,770.38.

The losses were broad. Nine of the 10 industry groups in the S&P 500 dropped. Phone companies were the only sector to advance.

Until now, the stock market has mostly moved sideways since the shutdown began at the start of the month, indicating that investors still expect lawmakers to come up with a deal. The S&P 500 is down 0.3 percent in October.

In government bond trading, the yield on the 10-year Treasury note fell to 2.63 percent from 2.65 percent. The yield has fallen close to its lowest in two months. Investors have bought Treasurys on concern that U.S. economic growth will slow as the budget impasse drags on.

There were also other signs that investors are getting gradually more nervous about the debt ceiling deadline.

The VIX index, which rises when investors are getting more concerned about stock fluctuations, rose to its highest in more than three months.

The dollar fell against the euro and the Japanese yen. The dollar index, which measures the strength of the dollar against other currencies, fell for the seventh day in nine. The gauge is close to its lowest since February.

One of the reasons stocks haven't fallen more is that some investors see the current stall as a blip rather than a change in the long-term trend. The Federal Reserve continues to keep up its unprecedented stimulus of the economy, a strategy that has helped support a four-year surge in stocks.

The stock market climbed to record levels in September after the Fed said it would keep buying $85 billion of bonds a month to support the U.S. economy. Many investors had expected the central bank to start reducing its stimulus.

Minutes from the September meeting will be published Wednesday, giving investors insight into the central bank's thinking.

"We would encourage investors with a long-time horizon to think of this as a buying opportunity," said Kristina Hooper, U.S. Head of Investment and Client Strategies at Allianz Global Investors. Many investors, who bought bonds after the financial crisis and the Great Recession, still hold too many bonds in their investment portfolios, she said.

Investors will also be keeping an eye on earnings reports. Companies start releasing financial results for the third quarter this week. S&P 500 companies are projected to report slowing earnings growth for the fourth straight quarter, according to data from S&P Capital IQ.

The data provider predicts that earnings in the July-through-September period rose 3.1 percent, compared with growth of 4.9 percent in the previous quarter.

Among stocks making big moves:

”” Cooper Tire & Rubber fell $3.79, or 12.8 percent, to $25.72 after the company filed a complaint in a Delaware court on Friday asking that the Indian company buying it quickly close on the deal. Investors took the news as a sign that the deal is in jeopardy.

”” Mattel slipped $1.40, or 3.3 percent, to $41.15 after a Goldman Sachs analyst cut his earnings estimates for the toy maker. The investment bank also cut its estimates for Hasbro, which fell 80 cents, or 1.7 percent, to $46.53. Goldman is predicting a tough holiday season for the toy makers as children favor video games.

”” Apple rose $4.72, or 1 percent, to $487.75 after a Jefferies analyst raised his rating and price target on the stock, saying improving margins should help the business until the launch of the iPhone 6.