Monday marked day seven of the government shutdown in the US and another drop for markets. Global stocks also felt the growing concerns as many Asian and European stocks fell also. China urged the US to avoid defaulting on its debt, warning that it would have major ramifications across the world economy. On Sunday, Speaker John Boehner commented that a debt limit hike would not be approved by the House unless other measures were included. Congress has until October 17th to make a deal. Leading the US indices’ lower were Visa Inc. (V), IBM (IBM) and American Express (AXP). Tech stock Facebook (FB) also fell after its rating was trimmed to outperform. Consumer borrowing in the US reportedly rose in August to $13.6 billion. The dollar continued to slide on Monday and ended near a two-month low against the Japanese yen.
Word on the Street
- Will Obama agree to a short-term debt-ceiling increase?
- Social media rivalry between Twitter and Facebook (FB) grows before IPO.
- Infosys (INFY) gets an upgrade from “buy” to hold” ahead of quarterly earnings.
- JP Morgan (JPM) says market won’t crash, highlights five stocks to buy.
- Oil futures fall almost 2% on the dragging government shutdown and debt ceiling debate.
- Bill Ackman Concedes Defeat on Herbalife (HLF).