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 Makes Progress on Passing a Continuing Resolution


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

This morning, the potential negative market catalyst from Italy's government was averted when former Prime Minister Silvio Berlusconi announced his support for current Premier Enrico Letta's government. Earlier in the morning, it was reported that 22 ministers from Berlusconi's party would vote in support of Letta's party, despite the earlier ruckus they had caused by threatening to resign from the Italian Senate. Italian stocks were the best performers in Europe today; the FTSEMIB (INDEXBIT:FTSEMIB) was up 0.68%.

US stock futures were down almost 1% by the time the market opened. However, after a brief dip in the opening hour, equities rallied back to close down 0.34% in the S&P 500 (INDEXSP:.INX). The materials and energy sector stocks were the best performers today. These two groups have been the worst performing sectors this year. However, the worst performing sector today was consumer staples. The ADP's report of September private payrolls showed a net gain of 166,000 jobs. The consensus economists' estimate saw 180,000 jobs created. In addition, the prior month's 176,000 gain was revised down to 159,000.

Some of today's negativity was also due to a statement from the Asian Development Bank. The bank said that developing Asian countries (ex-Japan) would only grow at 6% this year and by 6.2% next year. Its prior estimate in July forecast 6.3% growth this year and 6.4% next year.

Gold recovered from yesterday's 3% slide, making up two-thirds of those losses today. Treasuries rallied after the private payroll report and held on to most of their gains throughout the rest of the day.

The negotiations in Washington continued to play a dominant role in today's price action. Fifteen Republicans in the House said that they would support a continuing resolution that did not include changes to Obamacare. If 17 Republicans would vote in favor of such a bill, along with Democratic support, it could pass through the House.

Tomorrow's Financial Outlook

Weekly initial jobless claims will be released tomorrow morning. Recently, jobless claims have trended down to their lowest level in seven years. Another report due out is the ISM's survey of service-based growth in September. In August, the index rose to an eight-year high at 58.6. Lastly, August factory orders will be reported. Economists are estimating only 0.2% monthly growth, despite very optimistic manufacturing surveys.

Important economic releases across the globe include China's non-manufacturing PMI, the eurozone's services PMI, and eurozone retail sales. Last month, non-manufacturing growth in China reached the second lowest level since the index was created in 2011.

The only major earnings report scheduled for tomorrow is from Constellation Brands (NYSE:STZ).

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.

Featured Videos