Market Report: Stocks Drop As Investors Fear Shutdown

2 years 7 months 4 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
JEFFERSON CITY (AP) — Regulations aimed at helping companies such as Uber and Lyft expand in Missouri died in the... More >>
40 minutes ago May 30, 2016 May 30, 2016 Monday, May 30 2016 Monday, May 30, 2016 12:41:00 PM CDT in News
HAVANA - Cuba formally accepted a 20-ton shipment of rice processed in southeast Missouri Monday. Gov. Jay Nixon announced the... More >>
1 hour ago May 30, 2016 May 30, 2016 Monday, May 30 2016 Monday, May 30, 2016 12:21:00 PM CDT in News
COLUMBIA - As an event promoter for Off Track Events, Colin LaVaute has planned plenty of races in his work... More >>
10 hours ago May 30, 2016 May 30, 2016 Monday, May 30 2016 Monday, May 30, 2016 3:01:00 AM CDT in News
COLUMBIA — Over 600 people in south Columbia experienced power outages around 10 p.m. according to Columbia Water and Light.... More >>
13 hours ago May 29, 2016 May 29, 2016 Sunday, May 29 2016 Sunday, May 29, 2016 11:44:00 PM CDT in News
BOONE COUNTY - Flooding along the banks of the Missouri River caused a change of plans for some Mid-Missouri residents... More >>
19 hours ago May 29, 2016 May 29, 2016 Sunday, May 29 2016 Sunday, May 29, 2016 6:02:00 PM CDT in News
COLUMBIA - This year's Memorial Day parade will take a different route through downtown Columbia in an effort to limit... More >>
21 hours ago May 29, 2016 May 29, 2016 Sunday, May 29 2016 Sunday, May 29, 2016 3:38:00 PM CDT in News
BUCKHORN – The annual Mid-America Freedom Rally (MAFR) held an Honor Guard Ceremony Sunday afternoon. The event is a Memorial... More >>
22 hours ago May 29, 2016 May 29, 2016 Sunday, May 29 2016 Sunday, May 29, 2016 3:02:00 PM CDT in News
COLUMBIA — Columbia Parks and Recreation finished renovations to the Lake of the Woods Golf Course last Friday. Attracting... More >>
22 hours ago May 29, 2016 May 29, 2016 Sunday, May 29 2016 Sunday, May 29, 2016 2:40:00 PM CDT in News
TIPTON - Authorities are investigating a shooting that left a 19-year-old dead in Tipton late Saturday night. According to... More >>
23 hours ago May 29, 2016 May 29, 2016 Sunday, May 29 2016 Sunday, May 29, 2016 1:51:00 PM CDT in News
MOBERLY – Mid-Missourians could immerse themselves in history this Memorial Day weekend at a World War II reenactment in Moberly.... More >>
1 day ago May 28, 2016 May 28, 2016 Saturday, May 28 2016 Saturday, May 28, 2016 7:39:00 PM CDT in Continuous News
CENTRALIA — A Memorial Day display in Centralia is one that turns heads as people pass by. The "Avenue... More >>
1 day ago May 28, 2016 May 28, 2016 Saturday, May 28 2016 Saturday, May 28, 2016 5:26:00 PM CDT in News
FULTON - VFW Post 2657 celebrated Memorial Day with the sale of “Buddy” Poppies. VFW members and volunteers stood... More >>
1 day ago May 28, 2016 May 28, 2016 Saturday, May 28 2016 Saturday, May 28, 2016 3:08:00 PM CDT in News
COLUMBIA - The 28th annual Salute to Veterans Celebration and Air Show took flight Saturday at the Columbia Regional Airport.... More >>
2 days ago May 28, 2016 May 28, 2016 Saturday, May 28 2016 Saturday, May 28, 2016 1:08:00 PM CDT in News
JEFFERSON CITY (AP) — Missouri lawmakers took steps this year to address the growing number of drug overdoses, but health... More >>
2 days ago May 28, 2016 May 28, 2016 Saturday, May 28 2016 Saturday, May 28, 2016 12:54:44 PM CDT in News
BUTLER (AP) — A western Missouri community is grieving after the death of a spunky 12-year-old who was killed in... More >>
2 days ago May 28, 2016 May 28, 2016 Saturday, May 28 2016 Saturday, May 28, 2016 11:41:14 AM CDT in News
COLUMBIA – While many convenience stores are working extra hours to keep up with record-breaking Memorial Day travel predictions ,... More >>
2 days ago May 28, 2016 May 28, 2016 Saturday, May 28 2016 Saturday, May 28, 2016 11:02:00 AM CDT in News
KANSAS CITY (AP) — A Kansas City woman who pleaded guilty to second-degree murder in the death of her 2-year-old... More >>
2 days ago May 27, 2016 May 27, 2016 Friday, May 27 2016 Friday, May 27, 2016 11:10:23 PM CDT in News
COLUMBIA — A 22-year-old man was taken to the hospital with non-life threatening injuries Friday after he was shot twice.... More >>
2 days ago May 27, 2016 May 27, 2016 Friday, May 27 2016 Friday, May 27, 2016 10:52:00 PM CDT in News
Columbia, MO
Broken Clouds 84°
2pm 87°
3pm 87°
4pm 87°
5pm 86°

Select a station to view its upcoming schedule:

Coming Up Next

12:00p
2016 French Open
3:00p
The Dr. Oz Show
4:00p
Dr. Phil
1:00p
Maury
2:00p
Rules of Engagement
2:30p
Rules of Engagement

Tonight's Schedule

7:00p
2016 Stanley Cup Final
7:00p
Memorial Day
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld