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Overnight Markets: Wall Street down as shutdown prolongs
by Himanshu Singh on Oct 03, 2013 at 03:32
US stocks declined on Wednesday as investors watched for progress on ending a stalemate over federal spending that shut down the government a second day.
The Dow Jones industrial average was down 59 points, or 0.39%, at 15,133. The Standard & Poor's 500 Index was down one points, or 0.07%, at 1,694. The Nasdaq Composite Index was down three points, or 0.08%, at 3,815.
Equities sank in early trading as the federal shutdown entered its second day. The fight is rapidly merging with a higher-stakes battle over the government's borrowing power that is expected to come to a head soon. The Treasury has said the US will exhaust its borrowing authority no later than 17 October.
Adding to worries, a report showed private employers added fewer-than-expected jobs in September. The Labour Department won’t release its monthly jobs report on Friday if the government remains closed.
Among individual stocks, the possibility of a second offer for Blackberry Ltd (BB.TO) (BBRY.O) reversed a slide in its stock price after the struggling smartphone maker said it expected to record $400 million in pre-tax charges related to cuts announced last month. The stock ended up 0.3%.
Alcoa Inc. (AA) slumped 1.8% after Deutsche Bank AG lowered its rating on the aluminum producer. Monsanto Co. fell 1% as the world’s largest seed company gave a full-year earnings forecast that trailed analyst estimates.
Global Payments Inc. (GPN) rallied 11% after boosting its earnings forecast.
Producers of capital goods fell, led lower by military contractors. United Technologies Corp. dropped 2.2% and Lockheed Martin Corp. sank 1.9%.
On the positive side, Tenet Healthcare Corp. jumped 6.1% after Bank of American Corp. analyst Kevin Fischbeck said the company is well-positioned to win business on the BlueCross BlueShield of Texas network.
In Asia, shares oscillated between gains and losses on Thursday as investors watched for progress on ending an impasse over federal spending that has shut down the US government for two days.
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