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
NBR Nabors Industries Ltd. 7.93 0.06 0.76 7,280,183 Trade
INTC Intel Corporation 34.07 -0.12 -0.35 18,854,766 Trade
V Visa Inc. 95.22 -0.36 -0.38 6,970,841 Trade
VZ Verizon Communications Inc. 45.75 0.36 0.79 10,105,473 Trade
CTIC CTI BioPharma Corp. 3.40 -0.03 -0.87 18,218 Trade
EMN Eastman Chemical Company 83.73 0.76 0.92 920,547 Trade
CNX CONSOL Energy Inc. 14.63 0.48 3.39 3,129,217 Trade
URBN Urban Outfitters Inc. 18.06 0.30 1.69 2,214,207 Trade
ANF Abercrombie & Fitch Company 12.22 -0.07 -0.57 2,448,389 Trade
T AT&T Inc. 38.15 0.20 0.53 18,403,775 Trade
BBRY BlackBerry Limited 10.27 0.56 5.72 19,926,162 Trade
CMFC Investec Cautious Managed Fund C n/a n/a n/a 0
GCI Gannett Co Inc (New) 8.74 0.17 1.98 638,282 Trade


Emerging Growth

Inovio Pharmaceuticals Inc.

Inovio Pharmaceuticals Inc is a clinical stage biopharmaceutical company. The Company develops active DNA immunotherapies and vaccines in combination with proprietary electroporation delivery devices to prevent and treat cancers and…

Private Markets

California Green Tree Development

California Green Tree Development LLC (CGTD) is a for-profit LLC that plans on using California’s booming market of legal cannabis products for medical purposes. As an unprecedented resource, Cannabis has…

Mesa-Marshall 2 Well Project

MESA Resources ("MESA") is sponsoring the development of the two well direct drilling project -- "Mesa-Marshall #1-2". MESA, founded in 1992, is engaged in the acquisition, exploration and development of…