The 7th Day: Stocks Fall Again as Washington Impasse Deepens

Michael Teague |

Stocks ended lower on Monday, marking the second consecutive day of significant losses as markets brace themselves for what could be weeks of political gridlock over the US budget and debt ceiling.

It is a week that not long ago would have begun with rampant speculation about the results of the Federal Open Market Committee meeting that concludes on Wednesday, along with trade and jobs data. But the nearly year-long speculation about the Fed’s next move on fiscal stimulus has become almost completely eclipsed by the even more obscure nature of today’s Washington politics, where a small minority in the House of Representatives looks for all intents and purposes to be making hay out of what had been a traditionally non-political matter.

The possibility that the White House would be willing to accept a short-term raising of the debt ceiling was the only promising news item on the day, but did little to assuage market fears. All of this comes as at potentially great costs to the economy, with’s George Brooks arguing that in the event that the upcoming October 17 deadline for a deal is missed, the Dow could drop below 13,000 points in a very short period of time.

The Standard & Poor’s 500 index dropped 0.85 percent to close the day at a total of 1,676.12 points, while the Dow Jones Industrial Average took a loss of 0.90 percent to finish at 14,936.24, and the NASDAQ ended at 3,770.38 points for a loss of 0.98 percent.

On the S&P 500, services and basic materials stocks took the heaviest losses, with Urban Outfitters Inc. (URBN) , Abercrombie & Fitch Co. (ANF) , and Gannett Co. (GCI) shedding over 3 percent each, while Eastman Chemical Co. ($EMN), CONSOL Energy (CNX) and Nabors Industries (NBR) were also lower.

On the Dow, tech stocks were the only to end the day in the positive, with AT&T Inc. (T) , Verizon Communications (VZ) , and Intel (INTC) edging up to end the day. Meanwhile, financial stocks were the index’s worst performers, as Visa Inc. (V) and American Express Company (AXP) both ended the day lower.

The NASDAQ saw shares for BlackBerry (BBRY) jump nearly 4 percent on news that a number of major tech companies were interesting in its attempt to sell itself. Meanwhile, biopharma company Cell Therapeutics (CTIC) ended the day nearly 23 percent higher on news that one of its treatments had been approved by the FDA.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
ANF Abercrombie & Fitch Company 15.52 -0.23 -1.46 2,184,739
BBRY BlackBerry Limited 7.35 -0.02 -0.27 2,080,286
CMFC Investec Cautious Managed Fund C 0.00 0.00 0.00 0
CNX CONSOL Energy Inc. 16.79 -0.62 -3.56 5,341,353
CTIC CTI BioPharma Corp. 0.41 0.01 1.27 569,190
EMN Eastman Chemical Company 66.94 0.07 0.10 727,060
GCI Gannett Co Inc (New) 10.50 0.07 0.67 639,939
INTC Intel Corporation 35.26 0.11 0.31 21,522,859
NBR Nabors Industries Ltd. 13.04 -0.01 -0.08 4,906,107
T AT&T Inc. 36.86 -0.63 -1.68 100,583,446
URBN Urban Outfitters Inc. 33.74 0.16 0.48 1,434,646
V Visa Inc. 83.17 0.82 1.00 16,248,708
VZ Verizon Communications Inc. 48.21 0.01 0.02 19,414,749


Emerging Growth

Propanc Health Group Corp

Propanc Health Group Corp is an early stage healthcare company. It is engaged in developing new cancer treatments for patients, suffering from pancreatic and colorectal cancer.

Private Markets

Initial State

Initial State is an Internet of Things (IoT) data analytics & data management platform company. We turn sensor and event data into information that matters by making it easy to…


Trustify provides trust and safety in both the digital and physical worlds through our vast network of on-demand Private Investigators.By removing the large retainers and high hourly rates that traditional…