Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Congress Negotiates a Deal to Re-Open Government and Postpone Debt Ceiling Decision

By

Today's financial recap and tomorrow's financial outlook.

PrintPRINT
Japanese and Hong Kong markets were closed today for holidays. Much of the US, including the bond market, was also closed for Columbus Day. Volumes were understandably light. Additionally, most Asian stock indexes closed in negative territory. Chinese consumer prices rose 3.1% from the prior year, which is the fastest pace in the last seven months. Eurozone industrial production rose 1% in August.

S&P 500 (INDEXSP:.INX) futures opened down 0.7% last night in Globex trading as news broke that negotiations between House Speaker Boehner and President Obama had broken down. However, news surfaced later in the day that Senate leaders may have reached a deal that would re-open the government until December 15 and extend the government's borrowing authority to February 15 of next year. The budget extension would allow both parties to sort out their long-term differences.

Utility stocks were the worst performers today. Though the bond market was closed, interest rate futures indicated that the 10-year Treasury yield had risen roughly 4.5 basis points from its prior close. Telecom stocks were also down. Energy and tech sector stocks were the best performers in the S&P 500.

Tomorrow's Financial Outlook

Earnings reports will be the main events tomorrow. Tech earnings will be in focus with Intel (NASDAQ:INTC) and Yahoo (NASDAQ:YHOO) set to report after the close. Other notable reports include Charles Schwab (NYSE:SCHW), Citigroup (NYSE:C), Coca-Cola (NYSE:KO), Johnson & Johnson (NYSE:JNJ), Mosaic (NYSE:MOS), and CSX (NYSE:CSX). The first glimpse of November economic data is also set to be released. The New York regional manufacturing survey will be released at 8:30 a.m. ET.

Global market-moving economic data is due out from Australia, the UK, and the eurozone. Australia's central bank will release the minutes of its monetary policy meeting from earlier this month. The Reserve Bank of Australia has turned more dovish in response to slowing economic growth and inflation. The UK will release consumer and producer inflation indexes. The eurozone will release its ZEW survey of financial market experts' expectations of future economic growth.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE