Stocks extended their large gains from yesterday on Friday as optimism grew for a potential debt deal in the US. While the government is still in a fiscal standoff, it seems that progress is being made by the recent proposal from the House Republicans. The shutdown is now on its 12th day and many federal employees are feeling the effects. Mixed reports from retail stocks and banks knocked down sentiment further. Gap (GPS) surprised many by announcing a 3% drop in sales and was the biggest loser for the S&P on Friday. Safeway (SWY) was able to rebound from it’s disappointing earnings report released yesterday. The dollar surged again today against the Japanese yen and was able to end with a 1% weekly gain. Oil futures fell after a report that non-OPEC supplies will be strong next year.
Word on the Street
- Stocks continue to push higher on optimism for government negotiations.
- Republicans officially make a new proposal to the White House for the debt limit and shutdown.
- JP Morgan (JPM) sees Q3 loss, feels weight of legal costs.
- Micron (MU) slides despite upbeat views of prospects.
- Thousands of federal workers see a paycheck that is 40% lighter.
- Microsoft (MSFT) Investors Revolt Against Chairman Bill Gates.