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

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news