Thursday, October 3, 2013

Government Shutdown Day 3: Wall Street Still Doesn't Get It

As the federal government shutdown slid into its third day, evidence that people are beginning to get a little nervous over not only the continuing budget/continuing resolution/ObamaCare impasse, but also with the looming deadline on the debt ceiling, has begun to emerge.

Beginning with Warren Buffet's declaration this morning on CNBC, that the debt ceiling issue was nothing worrisome (meaning: he's really concerned and selling select shares of select companies), word around Wall Street and in Washington continued to forecast a longer and longer government shutdown, possibly extending through two weeks.

The problem is that the politicians have backed themselves into corners from which they cannot escape, especially the president, who steadfastly is sticking with his pledge that he won't negotiate over ObamaCare.

The Republicans and Democrats will not move from their well-staked-out positions, so America suffers.

Here's hoping that they forget how to start it back up again.

Consequently, stocks took a hit for the second straight session; bonds caught a bit of a bid.

Somewhat of a correction from yesterday's post, where Money Daily stated the government was losing $100 million a day for each day of the shutdown. Make that, more like $300,000. As for productivity, well, it's government work, so it's actually not productive at all.

Dow 14,996.48, -136.66 (0.90%)
Nasdaq 3,774.34, -40.68 (1.07%)
S&P 500 1,678.66, -15.21 (0.90%)
10-Yr Note 2.61%, -0.02
NYSE Volume 3,224,199,000
Nasdaq Volume 1,825,629,875
Combined NYSE & NASDAQ Advance - Decline: 1310-4257
Combined NYSE & NASDAQ New highs - New lows: 217-63
WTI crude oil: 103.31, -0.79
Gold: 1,317.60, -3.10
Silver: 21.79, -0.111

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