Market Report: Stocks Drop As Investors Fear Shutdown

2 years 9 months 3 weeks ago September 29, 2013 Sep 29, 2013 Sunday, September 29 2013 Sunday, September 29, 2013 2:52:00 PM CDT in News
By: William Joy, KOMU 8 Reporter

COLUMBIA - Major indexes finished down this week as wall street showed fear of a government shutdown.

The Dow Jones Industrial Average finished the week down 192 points to close at 15,258.24, down 1.25 percent because of drops in cisco and big local employer, IBM. The NASDAQ managed to finish up to 3,781.59 because of a strong earnings report from Nike, but the index only managed a .18 percent gain for the week, and the S&P 500 closed down for the first week this month to finish at 1,691.75, a 1.06 percent loss.

Blackberry and JC Penny were the big losers this week. JCP shares fell sharply after the company denied that it was short of money, but then issued $1 billion of new shares reportedly just to raise enough cash to make it through the holidays, and the mobile phone maker had equally depressing news. It turns out no one is buying Blackberries, T-Mobile is going to stop stocking them and the company lost $1 billion last quarter.

Economic reports released this week weren't too promising.

Consumer Sentiment, which is a survey of what people think of the health of the economy, slipped to 77.5 in September, down from 82.1 in August, which is the lowest final reading since April.

Housing prices have gone up a little more than 12 percent from July 2012-2013 according the S&P/Case-Shiller 20-City index, and they're up almost 2 percent from June to July, which is good news. According to Zillow, Columbia housing prices are up 7.4 percent from last year. The bad news is that more cities are seeing slowing gains each month. More people are selling homes, but fewer people are buying, which means housing prices are basically flat-lining.

The big reports this week are all about the employment situation and manufacturing orders, but the main thing to watch is if government runs out of money and shuts down if a bill isn't passed by Monday at midnight.

A government shutdown means roughly one million government workers are put on furlough, which means non-essential departments like national parks and zoos are closed as well as the Securities and Exchange Commission and Center for Disease Control, but you'll still be able to fly because Air Traffic Controllers will still work, get mail from the US Postal Service, and servicemen still get paid.

A key factor in the shutdown is the Affordable Care Act, but President Obama says he'll veto any bill that stops the program from starting on October 1.

The shutdown isn't as important as the debt-ceiling deadline of October 17th. The government shutdown keeps the government from making any new spending commitments, but the debt limit keeps them from paying previous commitments. If it's not raised, the US will default on some payment obligations which could severely cripple the national and world economy.

 

More News

Grid
List
LAKE OF THE OZARKS – One person was injured after a boat caught on fire at the 38-mile marker by... More >>
5 hours ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 10:10:00 PM CDT in News
KANSAS CITY (AP) — The Repertory Theatre of St. Louis has received a $1 million gift, the largest in its... More >>
10 hours ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 5:07:03 PM CDT in News
KANSAS CITY (AP) — A 51-year-old man is accused of pulling over a vehicle and acting as if he were... More >>
11 hours ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 4:46:46 PM CDT in News
COOPER COUNTY - A man has been charged in relation to a hostage standoff east of Boonville Friday morning. ... More >>
11 hours ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 4:15:00 PM CDT in News
COLUMBIA - With the extreme heat this weekend, local medical experts told people to be aware of the signs of... More >>
11 hours ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 3:53:00 PM CDT in News
COLUMBIA - Out-of-towners from across the state are boosting sales for local businesses and restaurants downtown this weekend. The... More >>
12 hours ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 3:13:00 PM CDT in News
JEFFERSON CITY - The Jefferson City Knights of Columbus hosted a barbecue fundraiser for the country's first Special Olympics training... More >>
13 hours ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 1:54:00 PM CDT in News
COLUMBIA - Athletes, parents and officials across Columbia attempted to beat the heat while participating in the Show Me State... More >>
14 hours ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 1:21:00 PM CDT in News
KANSAS CITY, Kan. (AP) — Hundreds of mourners gathered for the funeral for a Kansas City, Kansas, police captain shot... More >>
15 hours ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 12:10:16 PM CDT in News
KANSAS CITY (AP) — A federal judge has tossed out a woman's lawsuit against Home Depot over the deaths of... More >>
16 hours ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 11:38:15 AM CDT in News
KANSAS CITY (AP) — A Kansas City, Missouri , man is accused of spitting in a police officer's eye and... More >>
16 hours ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 11:29:44 AM CDT in News
COLUMBIA — A group of young athletes braved the high heat this morning doing more than most people do before... More >>
17 hours ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 10:36:00 AM CDT in News
ST. LOUIS (AP) — Roy Blunt has served in Congress for two decades, but as he seeks re-election to the... More >>
18 hours ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 9:39:32 AM CDT in News
JEFFERSON CITY (AP) — An incoming high school senior from the Kansas City area will be one of the youngest... More >>
18 hours ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 9:33:00 AM CDT in News
BOONE COUNTY - The Boone County Fair had better turnout than expected with Sturgeon hosting it for the first time.... More >>
21 hours ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 6:02:00 AM CDT in News
COLUMBIA - Early Thursday morning, a man was shot during an argument with a neighbor about a “no parking” sign... More >>
1 day ago July 23, 2016 Jul 23, 2016 Saturday, July 23 2016 Saturday, July 23, 2016 12:03:00 AM CDT in News
COLUMBIA - Two mid-Missouri Republican delegates said the Republican National Convention in Cleveland this week was very successful. Columbia... More >>
1 day ago July 22, 2016 Jul 22, 2016 Friday, July 22 2016 Friday, July 22, 2016 11:06:00 PM CDT in News
GALENA (AP) — The Missouri State Highway Patrol said an 18-year-old has drowned in Table Rock Lake. The patrol... More >>
1 day ago July 22, 2016 Jul 22, 2016 Friday, July 22 2016 Friday, July 22, 2016 8:03:19 PM CDT in News
Columbia, MO
Broken Clouds 79°
4am 81°
5am 80°
6am 79°
7am 79°

Select a station to view its upcoming schedule:

Coming Up Next

3:30a
Paid Program
4:00a
Paid Program
4:30a
Paid Program
3:30a
Paid Program
4:00a
Paid Program
4:30a
Paid Program

Tonight's Schedule

7:00p
Hollywood Game Night
8:00p
American Ninja Warrior
7:00p
Bulletproof Heart
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Cougar Town