Stocks might rebound today as John Boehner promised that he will not allow the United States to default on its debt.
Today's headline was going to be about the non-farm payrolls, the most closely watched economic indicator in the world, but due to the partial shutdown of the government, it will not be released as scheduled. The shutdown is now on day four, and there has still been no meaningful progress on passing a budget that both parties could tolerate.
House Speaker Boehner told his party yesterday that he will not allow the country to default on its debts. If necessary, he will allow an increase in the debt ceiling if we reach Oct. 17 with no compromise in place. The US has never defaulted on its debt, and the 14th amendment to the Constitution says that "The validity of the public debt of the United States, authorized by law, … shall not be questioned."
The president also canceled a diplomatic trip to Asia because of the troubles at home.
This morning, stock futures headed for a slightly higher open. Dow
(INDEXDJX:.DJI) futures were up 0.14% at 14,927. Futures on the S&P 500
(INDEXSP:.INX) rose 0.22% to 1,673.30 and the Nasdaq
(INDEXNASDAQ:.IXIC) gained 0.23% to 3,209.50.
(NASDAQ:FB) shares rose 1.25% after the company announced that it will sell advertising through Instagram. This is the first effort to monetize the photo-sharing platform. Users in the United States will soon see ads in their photo feeds.
(NASDAQ:TSLA) shares rebounded 0.57% after a the stock plunged about 10% on reports of one of its vehicles catching on fire.
Twitter publicly unveiled its public offering plans. According to its S-1, Twitter seeks to raise $1 billion on public markets under the TWTR symbol. This implies a total valuation of $12 billion.
Jamie Dimon has stepped down as Chairman of JPMorgan Chase's
(NYSE:JPM) main consumer banking unit. The CEO was under pressure to give up his dual role at the bank earlier this year, but shareholders let him keep both positions.
European shares were mostly higher today. Producer prices in the eurozone were unchanged from between July and August, but 0.8% lower from a year before. Japan's Nikkei
(INDEXNIKKEI:NI225) fell almost 1% after the Bank of Japan voted to stay the course with its historic monetary stimulus. In a press conference, Governor Haruhiko Kuroda warned that a protracted government shutdown in the US could destabilize world financial markets.
No positions in stocks mentioned.
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