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Market Update

U.S. Dollar at 8-Month Low, Investors Speculate on Government Closure Impact

Author: Nichole Harper
Last Update: 12:52 PM ET October 01 2013

12:50 PM New York Stocks on Wall Street gained as investors reacted calmly to the U.S. government shutdown. Wall Street is betting that the shutdown will be short lived and debt ceiling will be revised as early as next week. U.S. Treasury yields rose to 2.64% and the dollar index drops to an eight month low against a basket of six currencies.

Investors and traders reacted calmly to the U.S. government shut down and bet that the closure will be short lived.

S&P 500 index increased 11.03 to 1,692.58 and Nasdaq Composite Index 30.00 to 3,801.48.

However, if the government closure lasts longer than a week market sell-off may intensify and increase pressure on politicians.

European markets closed mixed as investors worried about the outcome of confidence vote in Italy later this week and uncertainty related to the U.S. government shut down and the debt ceiling negotiations.

In London trading, FTSE 100 index fell 0.4% or 22.89 to 6,439 and in Frankfurt the DAX index rose 0.4% or 33.02 to 8,627. In Paris, CAC 40 index increased 0.6% or 23.88 to 4,167.

The U.S. manufacturing index expanded last month at the fastest pace in 2-1/2 years and companies added the most employees in fifteen months.

The Institute for Supply Management said index of factory activities across the nation rose 56.2 in September from 55.7 in August, the highest level since April 2011.

Employment index that tracks new hiring in the manufacturing industry increased to 55.4, highest since June 2012. The index was at 53.3 in August

General Motors said September sales declined 11% from a year ago and Ford sales increased 6%. Chrysler sales gained 1%. The forward looking new orders index declined to 60.5 from 63.2.

U.S. Stocks in Review

Chrysler Group LLC, the U.S. based third largest automaker said auto sales rose 1% from a year ago and sales increased for the 42nd consecutive month as sales rose to 143,017 units in September.

Total car sales increased 3% to 43,487 from 42,050 and total truck sales during the month were nearly flat at 99,530 from 99,991 a year ago month.

Diamond Foods, Inc. (DMND) plunged 12.3% or $2.90 to $20.65 after packaged food company said net sales in the fourth-quarter ending in July dropped 11% to $199.8 million. Net loss in the quarter widened to $147.1 million or $6.71 a diluted share compared to $32.9 million or $1.52.

Ford Motor Company (F) gained 2.2% or 36 cents to $17.24 after the global automotive industry reported September totaled sales climbed 6% to 185,146, delivering best September month sales since 2006.

General Motor Corporation (GM) slid 3 cents to $35.95 after the total U.S. vehicle sales for September declined 11% to 187,195 units from 210,245 units in the prior year month.

NYSE Euronext (NYX) increased 26 cents to $42.23 after the trading platform provider sold its 12% stake in Qatar Exchange to the Qatar Investment Authority a subsidiary of Qatar sovereign fund.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc