Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Wall Street, Black Hawk down

While you were sleeping: Wall Street, Black Hawk down

Oct 4 (BusinessDesk) – Wall Street declined on concern about the lack of progress in solving the political stalemate over a US budget agreement that has closed all non-essential government services and risks grinding the recovery in the world's largest economy to a halt.

"We've heard speech after speech, and the only thing that we continue to hear is that nothing's going to get done," Sam Ginzburg, head of trading at First New York Securities, told Reuters.

Even so, Ginzburg remains optimistic. "I think ultimately it will."

Shares of United Technologies fell, last 1.4 percent weaker, after the company said it might have to furlough more than 5,000 workers if the government shutdown continues into next month.

It said it expects to furlough the first workers, nearly 2,000 people, at its Sikorsky Aircraft unit, which makes the Black Hawk helicopters, on October 7.

In afternoon trading in New York, the Dow Jones Industrial Average retreated 0.68 percent, the Standard & Poor's 500 Index dropped 0.66 percent, and the Nasdaq Composite Index sank 0.86 percent.

Shares of Boeing and Chevron fell, last down 1.9 percent and 1.8 percent respectively, pacing losses in the Dow.

"I think the longer this stalemate goes on in Washington, the greater the reaction is going to be in the market," Warren West, principal at Greentree Brokerage Services in Philadelphia, told Reuters.

Initial claims for state unemployment benefits rose by 1,000 to a seasonally adjusted 308,000 in the week ended September 28, according to the Labor Department.

Separately, the Institute for Supply Management said its services index fell to a lower-than-anticipated 54.4 in September, the lowest in three months.

"We’re still seeing positive growth, it’s just not suggesting that there’s underlying momentum in the pipeline to propel us beyond the 2 percent growth range,” Lindsey Piegza, chief economist at Sterne Agee & Lynch in Chicago, told Bloomberg News. “Businesses are very hesitant to invest in additional employees.”

Meanwhile, the Labor Department said it will not release the September payrolls data—which includes the unemployment rate and payroll employment—on Friday as originally scheduled because of the lapse in funding. An alternative release date has not been scheduled, it said in a statement on its website.

Shares of Eli Lilly slumped, last down 3.1 percent, after the company said it will be "challenging" to meet its minimum revenue goal in 2014 because of the devaluation of the Japanese yen and slower market growth in key emerging market countries.

In Europe, the Stoxx 600 Index finished the session 0.4 percent weaker from the previous close. Germany's DAX fell 0.4 percent, while France's CAC 40 slid 0.7 percent. The UK's FTSE 100 gained 0.2 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news