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.

Obama Tells Wall Street to Worry; Ackman Reworks Herbalife Short


Jobless claims also rose.

Stock futures are in the red as the government shutdown goes into day three with no solution in sight, and jobless claims also rose.

Yesterday's meeting between President Obama and Republicans failed to make any headway. House Speaker John Boehner said yesterday that the president refuses to negotiate fiscal issues with the GOP as long as the government remains shut down.

"Negotiations now would lead to more demands... I have bent over backwards to deal with the Republican party," Obama said. "This time, I think Wall Street should be concerned."

A report today showed that initial jobless claims rose by 1,000 last week to 308,000. Outplacement firm Challenger Grey & Christmas said that mass layoffs fell to 40.289 in September from 50,462 in August.

Tomorrow's much anticipated jobs report may be delayed due to the government shutdown. September non-farm payrolls growth is expected to rise to 184,000 from 169,000.

US index futures declined following yesterday's losses. Before the opening bell, Dow (INDEXDJX:.DJI) futures were off 0.15% at 15,003 while futures contracts on the S&P 500 (INDEXSP:.INX) sank 0.17% to 1,680.20. Nasdaq (INDEXNASDAQ:.IXIC) futures fell 0.08% to 3,235.00.

Later today, the ISM US non-manufacturing sector PMI for September will be released. Economists expect it to fall to 57 from 58.6, indicating a slightly slower rate of growth for the sector. August factory orders data will also come out. Orders are expected to show a 0.3% rise.

European stocks are mixed as the eurozone composite PMI unexpectedly rose to 52.2 in September from 52.1 in August. Services PMI came in at the same level. Retail sales in August also rose 0.7% month-over-month, but fell 0.3% from a year ago. Services PMI in Germany unexpectedly fell to 53.7 from 54.4, France rose 0.3 points to 51, and Italy rose to 52.7 from 48.8.

Chinese stocks posted strong gains today after the country posted a six-month high services PMI of 55.4 in September.

In stock news, United Technologies (NYSE:UTX), a company that supplies military aircraft, declined after saying that it will lay off 5,000 workers temporarily because of the budget impasse in Washington.

British Petroleum (NYSE:BP) shares rose more than 1% after the company won a reprieve from a US appeals court over the 2010 Gulf of Mexico oil spill. The New Orleans court moved to temporarily halt payouts to victims while claims are reassessed. BP has complained that the claims adjuster has been too generous, even awarding businesses that were not actually harmed by the massive oil spill.

As Bill Ackman's short of Herbalife (NYSE:HLF) has gone belly up -- the multi-level marketer is up more than 50% since he announced his $0 price target -- the hedge fund manager is moving 40% of his short position into long-term put options.

Twitter: @vincent_trivett
< 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.
Featured Videos