Twenty seven out of thirty Dow components ended lower led by Visa
US stocks in the red once again at Wall Street on Monday, 07 October 2013. U.S. stocks declined on Monday, with the S&P 500 index closing at a four-week low, as a stalemate on Capitol Hill over preventing a government default persisted. It was a poor start to the week for the equity market. Stock market participants were put off by some revelations from House Speaker Boehner over the weekend that made it sound as if partisan positions are hardening and not easing the closer as the October 17 debt limit deadline nears.
After an almost 152-point drop, the Dow Jones Industrial Average shed 136.34 points, or 0.9%, to 14,936.24. The Nasdaq Composite shed 37.38 points, or 1%, to 3,770.38. The S&P 500 index fell 14.38 points, or 0.9%, to 1,676.12.
Nine out of ten sectors ended in the red. Consumer discretionary paced losses and telecommunications was the best performing of its 10 sectors. Twenty seven out of thirty Dow components ended lower. Visa and American Express led declines among the Dow components.
The partial U.S. government closure is in its seventh day with still no end in sight. The market place is wondering if and when credit rating agencies will downgrade the U.S. government's credit rating. Such could accelerate trader and investor anxieties.
Most U.S. economic data is not being released due to the U.S. government closure. However, the Fed's FOMC minutes will be released on Wednesday and will be closely scrutinized by the market place. Other Fed officials are speaking this week. Traders and investors will be very interested in seeing what these officials say about the U.S. government shutdown's impact on the U.S. economy.
The Consumer Credit report for August was the lone economic release today. The report, which is compiled by the Federal Reserve, showed consumer credit increased $13.6 bln (consensus $11.8 bln) versus a prior increase of $10.4 bln. Like most other consumer credit reports, this one was also glossed over given its dated nature and history of seeing large revisions.
In the tech sector, IBM fell 1.1% after Barclays PLC downgraded shares of the company.
Bullion metal prices ended higher on Monday, 07 October 2013 at Comex. Prices ended the U.S. day session with good gains and near the daily high on Monday. Safe-haven demand amid the uncertainty surrounding the U.S. government's partial shutdown, a weaker U.S. dollar index and short covering were all bullish daily inputs for the yellow metal.
December gold ended higher by $15.2 (1.2%) at $1325.1 per ounce on Monday. December silver ended higher by 63 cents or 2.9% of $22.39 per ounce.
Crude-oil prices ended lower on Monday, 07 October 2013 at Nymex. Crude-oil futures settled lower on Monday, pressured by a lack of progress toward ending a U.S. government shutdown and an upcoming deadline to avoid a debt default, but prices managed to close above $103 a barrel for a fourth session in a row.
November crude oil dropped fell 81 cents, or 0.8%, to settle at $103.03 a barrel on the New York Mercantile Exchange. Prices, which last week gained 0.9%, held their ground above $103 for a fourth-straight session.
For every share rising, nearly four declined on the New York Mercantile Exchange, where almost 595 million shares traded. Composite volume was around 2.6 billion.
Indian ADRs ended mixed on Monday. In the IT space, Infosys was up 0.4% and Wipro was down 0.6%. In the Banking space, HDFC Bank was up 0.2% and ICICI Bank was up 1.8%. In other space, Tata Motors was down 0.7% and Dr Reddys was down 0.7%.
The August trade balance report and the Job Openings report were due to be released on Tuesday, but they will be delayed on account of the partial government shutdown which is looking like it will enter its eighth day on Tuesday.
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