Market Report: Stocks Drop As Investors Fear Shutdown

2 years 8 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
COLUMBIA — Gretchen Maune said losing her sight has made her "more fearless." She wanted to stretch herself by learning... More >>
2 hours ago June 25, 2016 Jun 25, 2016 Saturday, June 25 2016 Saturday, June 25, 2016 4:55:00 AM CDT in News
BOONVILLE - A train crashed into a car near the Isle of Capri Casino and Missouri River Friday night. ... More >>
7 hours ago June 25, 2016 Jun 25, 2016 Saturday, June 25 2016 Saturday, June 25, 2016 12:04:00 AM CDT in News
CLAYTON (AP) — A judge says attorneys for the city of Ferguson and other defendants in a wrongful-death lawsuit brought... More >>
10 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 8:47:00 PM CDT in News
HOLTS SUMMIT- The Better Business Bureau is warning mid-Missouri about a new scam, where scammers claim to represent Ameren UE.... More >>
11 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 7:32:00 PM CDT in News
COLUMBIA- The Boone County Fire Protection District got an upgrade on Friday. It showed off 10 of its shiny... More >>
12 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 7:04:00 PM CDT in Continuous News
COLUMBIA - The recent heat wave in mid-Missouri has already caused problems with the roads. And now it's causing major... More >>
12 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 6:50:00 PM CDT in News
COLUMBIA - Some drivers in Missouri could soon be rolling down the road of the future. The Missouri Department... More >>
12 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 6:48:00 PM CDT in News
COLUMBIA - Residents of Columbia say they are feeling more satisfied than ever when it comes to calling City Hall... More >>
13 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 5:36:00 PM CDT in News
JEFFERSON CITY - Your next ride with Uber or Lyft will be different than last time. Governor Nixon signed... More >>
14 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 4:32:00 PM CDT in News
JEFFERSON CITY - Three new troopers have been assigned to Troop F in mid-Missouri, according to Sgt. Scott White of... More >>
15 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 4:11:00 PM CDT in News
TROY (AP) — Authorities say they're searching for an eastern Missouri woman after her husband was found dead from an... More >>
15 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 4:00:20 PM CDT in News
SEDALIA - Gov. Jay Nixon signed three agriculture bills into law Friday evening. He was accompanied by state legislators from... More >>
15 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 3:53:00 PM CDT in News
COLUMBIA - United States Supreme Court ruled Thursday that police officers do not need a warrant to give a breathalyzer... More >>
15 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 3:51:00 PM CDT in News
MEXICO - A Missouri State Highway Patrol pursuit of a man on a motorcycle ended in a crash at Highway... More >>
15 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 3:45:00 PM CDT in News
COLUMBIA – Bicycle riders in Columbia will have a new place to ride, and traffic could decrease after a new... More >>
16 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 3:28:01 PM CDT in News
COLUMBIA - The Central Missouri Humane Society launched a new Community Outreach Unit Friday to help animals in need throughout... More >>
16 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 3:16:00 PM CDT in News
COLUMBIA - Kristie Wolfe, the first president and principal of Father Tolton Regional Catholic High School, has announced her resignation,... More >>
16 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 3:08:00 PM CDT in News
JENNINGS (AP) — A 35-year-old man has pleaded guilty in the stabbing death of his former girlfriend at her home.... More >>
17 hours ago June 24, 2016 Jun 24, 2016 Friday, June 24 2016 Friday, June 24, 2016 2:06:00 PM CDT in News
Columbia, MO
Broken Clouds 75°
8am 78°
9am 80°
10am 83°
11am 87°

Select a station to view its upcoming schedule:

Coming Up Next

7:00a
Today Weekend
9:00a
KOMU 8 News Today
10:00a
Floogals
7:00a
Calling Dr. Pol
7:30a
Calling Dr. Pol
8:00a
Dog Town, USA

Tonight's Schedule

7:00p
2016 U.S. Summer Olympic Trials
8:00p
2016 U.S. Summer Olympic Trials
7:00p
Family Guy
7:30p
Family Guy
8:00p
Bob's Burgers
8:30p
Bob's Burgers
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld