Market Report: Stocks Rise on Hopes of Government Deal

6 years 5 months 2 weeks ago Sunday, October 13 2013 Oct 13, 2013 Sunday, October 13, 2013 2:48:00 PM CDT October 13, 2013 in News
By: William Joy, KOMU 8 Reporter
loading

COLUMBIA - Stocks fell sharply at the beginning of the week because fear of a U.S. debt default, but at the end of the week, stocks shot up when investors thought lawmakers were close to reaching a deal to extend the nation's borrowing limit.

The Dow Jones Industrial Average finished the week up 1.09 percent to finish at 15,237.11, including a 300-point gain Thursday when a government deal seemed close.

The NASDAQ was the only major index to finish down, but dropped only 15.88 or .42 percent to close at 3,791.87

The S&P 500 closed at its highest mark since September, up .75 percent on the week to 1,703.20.
While investors might be optimistic a government deal is close, consumers are pessimistic about the economy. Consumer sentiment dropped to a nine-month low of 75.2, down from 77.5 according to the Thomson Reuters/University of Michigan index.

It also might be time for a fill up. Gas prices have been low recently due to a general market decline since the government shutdown began a lack of military conflict, and the fact that there haven't been any major storms so far during hurricane season. Some experts say a government deal and the expectation of conflict in Libya could move prices back up.

There was good news in housing this week as applications for mortgage loans were higher for last week and the number of foreclosures has gone down over the past few months, according to CNBC. The reasoning for the increase in loans is lower mortgage rates, but a government default in four days would send those rates soaring.

The government default is the big thing to watch this week. Jobless claims on Thursday and the Consumer Price Index, which shows inflation, on Wednesday are the major reports, but a government default would dwarf either of those.

For the average American, the U.S. default would mean stoppages or at least disruptions in all government payments including food stamps, unemployment benefits, and social security. Missouri's Medicaid program would be affected as well according to the state's budget director.

Since a U.S. default has never happened before, it's tough to know what exactly will happen, but for the purposes of scale, the U.S's $12 trillion dollars of debt is 23 times what Lehman Brothers defaulted on, and helped drive the U.S. into its most recent recession.

 

More News

Grid
List
(CNN) -- The last three weeks have marked one of the most devastating periods in history for the American job... More >>
1 hour ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 9:52:02 AM CDT April 02, 2020 in News
As COVID-19 spreads, KOMU 8 will continue to update you about the impacts on the community. KOMU 8 News... More >>
2 hours ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 9:12:00 AM CDT April 02, 2020 in News
JEFFERSON CITY - Starting April 2, Jefferson City Schools is offering meals to students impacted by school closures. Students from... More >>
3 hours ago Thursday, April 02 2020 Apr 2, 2020 Thursday, April 02, 2020 8:15:00 AM CDT April 02, 2020 in Continuous News
COLUMBIA - Three separate MU Zoom sessions were disrupted by individuals who entered the meetings uninvited and used "discriminatory... More >>
14 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 8:59:00 PM CDT April 01, 2020 in News
CUBA, Mo. (AP) — An eastern Missouri man was charged with making a terrorist threat after he allegedly coughed toward... More >>
15 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 8:22:00 PM CDT April 01, 2020 in News
COLUMBIA – As the COVID-19 pandemic forces more people to stay indoors, the beautiful weather is still drawing plenty of... More >>
17 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 6:24:00 PM CDT April 01, 2020 in News
COLUMBIA - Paying rent has become a challenge for thousands of Missourians who have lost their jobs due to COVID-19.... More >>
17 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 5:49:00 PM CDT April 01, 2020 in News
COLUMBIA - COVID-19 has already changed many aspects of daily life, from visiting restaurants to attending school. Now, first responders... More >>
18 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 5:09:00 PM CDT April 01, 2020 in News
JEFFERSON CITY - Governor Mike Parson addressed the public at 3 p.m. on Wednesday, saying the state plans to restrict... More >>
19 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 3:45:00 PM CDT April 01, 2020 in Top Stories
As COVID-19 spreads, KOMU 8 will continue to update you about the impacts on the community. KOMU 8 News... More >>
20 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 2:49:00 PM CDT April 01, 2020 in News
MONITEAU COUNTY - The Moniteau County Police chased down and arrested two people in a stolen car for multiple charges,... More >>
21 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 2:30:00 PM CDT April 01, 2020 in News
FAYETTE - Central Methodist University took steps to help rural Missouri medical professionals in the midst of COVID-19 by donating... More >>
21 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 2:04:00 PM CDT April 01, 2020 in News
COLUMBIA — As state and commercial testing is more available for the Missourians, the number of confirmed cases is rising.... More >>
21 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 2:00:00 PM CDT April 01, 2020 in News
COLUMBIA - COMO Youth Soccer, Sporting Columbia and Columbia Select started hosting daily practices using Zoom back when school got... More >>
22 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 1:24:00 PM CDT April 01, 2020 in Top Stories
(CNN) -- Postponing Tokyo 2020 will have provided a sense of relief to many Olympians but the delay in the... More >>
22 hours ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 12:51:47 PM CDT April 01, 2020 in A Brighter Tomorrow
COLUMBIA - The Columbia Public School district announced Wednesday it's putting classes on pause through the end of the week... More >>
1 day ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 10:11:00 AM CDT April 01, 2020 in Top Stories
COLUMBIA - As the weather gets warmer and plants continue to bloom, season allergies will become more of an issue... More >>
1 day ago Wednesday, April 01 2020 Apr 1, 2020 Wednesday, April 01, 2020 5:51:00 AM CDT April 01, 2020 in News
In this COVID-19 town hall, KOMU 8's Emily Spain talks with Graham McCaulley about how the ongoing pandemic has affected... More >>
1 day ago Tuesday, March 31 2020 Mar 31, 2020 Tuesday, March 31, 2020 11:42:00 PM CDT March 31, 2020 in News
Columbia, MO
Broken Clouds 65°
12pm 67°
1pm 68°
2pm 67°
3pm 68°