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Market Update

U.S. Indexes Trade Higher, Rating Agencies Quiet on U.S. Debt Downgrade

Author: Nichole Harper
Last Update: 1:44 PM ET October 04 2013

1:45 PM New York – U.S. market indexes gained higher but political leaders showed no interest in compromising. Rating agencies also appear conflicted and under political pressure not to downgrade U.S. debt. Twitter files to raise as much as $1 billion.

Market indexes in trading gained as the White House and Congressional leaders open talks and the U.S. government remained shut for the fourth day in a row.

S&P 500 index gained 11.29 to 1,689.95 and the Nasdaq Composite Index increased 34.81 to 3,809.15.

World markets are increasingly worried as the U.S. debt default deadline approaches in two weeks and U.S. political leaders appear more concerned about ideological wars than the welfare of the nation.

The U.S. Treasury Department warned in a report released on its website said “political brinkmanship” heightens the prospect of a default than can lead to larger troubles later.

In 2011, when the government closure appear to be imminent, the rating agency Standard & Poor’s stripped the U.S. of its AAA rating by one notch.

U.S. based rating agencies are known for their double standards when evaluating sovereign debt ratings.

If emerging markets were in similar kind of trouble, rating agencies would have already downgraded the debt rating of the nation ahead of the government closure and impending debt default.

Twitter Plans to Raise $1 Billion in IPO

The popular microblogging site operator Twitter Inc filed with the U.S. regulator to raise as much as $1 billion.

The stock is expected to trade with the symbol TWTR and underwriters are planning to price the deal in the next six weeks.

Twitter said in its filing sales in the six-month period ending in June increased to $253.6 million from $122.4 million.

Net loss in the period widened to $69.3 million from $49.1 million a year ago period and number of active users increased to 215 million at the end of March from 135 million a year ago month.

U.S. Stocks in Review

Computer Services, Inc, gained 1.6% or 50 cents to $30.75 after the technology solution provider said revenues in the second-quarter ending in August climbed 11.1% to $54 million.

Net income in the quarter jumped 6.8% to $6.5 million or 45 cents a diluted share compared to $6.1 million or 41 cents.

Chief Executive Officer Steven A. Powless said “This quarter marked our 37th consecutive quarterly revenue growth and outlook for the fiscal 2014 second-half remains positive.”

IDT Corporation (IDT) dropped 7.9% or $1.48 to $17.22 after the telecommunication group reported sales in the fourth-quarter ending in July jumped 7.1% to $412.1 million.

Net in the quarter swung to a loss $3.7 million or 17 cents diluted share compared to a net income of $37.3 million or $1.69 per share.

Union Pacific Corporation (UNP) fell $1.15 to $154.11 after the freight and logistic expects operating revenue in the third-quarter to increase between 4% and 4.5% and diluted earnings per share in the range of $2.45 to $2.48, double-digit increase compared to last year.

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