Closing Bell: Stocks Fall Again as Federal Budget Deadline Draws Nearer

new york stock exchange traders government shutdown budget battle
Richard Drew/AP

Stocks fell again Friday to close out Septembers first down week as investors fretted over the looming possibility of a government shutdown.

The Dow Jones industrial average (^DJI) lost 70 points, or 0.5 percent, to 15,258, the Standard & Poor's 500 index (^GPSC) fell 7 points, or 0.4 percent, to 1,691 and the Nasdaq composite index (^IXIC) dropped 6 points, or 0.2 percent, to 3,781.

The Senate passed legislation to keep the federal government operating beyond midnight Monday. It remains unclear, however, whether the Democratic-led Senate and the Republican-run House will be able to craft a compromise and rush it to President Barack Obama for his signature before the government has to tell hundreds of thousands of federal workers to stay home, starting Tuesday.

In the latest comments from Fed officials after last week's surprise decision by the central bank to continue its stimulus measures at full power, the president of the Federal Reserve Bank of Chicago, Charles Evans, said the Fed could still start reducing its asset purchases this year based on economic forecasts, but that the decision to wind down stimulus could be pushed into next year

Investors also dealt with mixed economic signals from two new reports Friday.

Data from the Commerce Department showed U.S. household spending rose in August rose as incomes increased at their fastest pace in six months, a sign that momentum could be picking up in the U.S. economy despite months of harsh government austerity.

On the other hand a University of Michigan survey showed that consumer confidence declined in September as Americans worried about the possible government shutdown and their own finances. The survey also found that half of households expect no pay increase in the year ahead.

In commodities news, benchmark U.S. crude fell 16 cents to close at $102.87 a barrel, while gold rose rose $15.10 an ounce to $1,339.20.

In corporate news, BlackBerry (BBRY) said it was committed to completing a series of major changes quickly after reporting Friday that it lost $965 million on revenue of $1.6 billion. The troubled smartphone company's financial results were in line with the the figures it released last week, when it warned investors to expect dismal earnings and announced 4,500 layoffs. Fairfax, BlackBerry's largest shareholder, subsequently announced it plans to make an offer for Blackberry and is trying to attract other investors. BlackBerry canceled its conference call with analysts Friday in light of that overture. It gained 1 percent, to close at $8.03.

More Stocks in the News:

  • J.C. Penney (JCP) shares slid almost 14 percent to $8.97 after the struggling retailer said it would raise about $811 million through a stock offering, which means current shares will diminish in value as the pool of public shares grows.
  • Shares of Finish Line (FINL) jumped 9 percent to $24.41 after the company reported a 6 percent jump in second-quarter profits, as the retailer cut costs and sales at comparable stores rose. A deal cut last year with Macy's (M) is helping to drive business.
  • Lumber Liquidators (LL) dropped 5.2 percent to $107.13 after it disclosed that federal authorities had searched its corporate offices in an action related to imports of some wood flooring products.
  • United Continental Holdings (UAL) fell 9.3 percent to $30.91 after it projected third-quarter revenue would come in below Wall Street expectations.
  • Nike (NKE) shares jumped another 4.7 percent to $73.64 after the shoe and apparel company reported a quarterly profit Thursday that was higher than financial analysts expected.
What to Watch Monday:
  • Toyota Motor Corp. (TM) chairman, Takeshi Uchiyamada, speaks at the Economic Club of Washington.
  • The Institute for Supply Management releases its survey of business condition in the Chicago area in September at 9:45 a.m. Eastern time.
  • At 10:30 a.m., the Federal Reserve Bank of Dallas releases its survey of Texas manufacturers for September.
-Compiled from staff and wire reports.

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I do estimating in construction. Domestic raw material cost are going up 30% over next year due to this health care nonsense and manufactures having to cover the cost. You don't hear about that in the news. That of course will trickle down to the taxpayer.

September 30 2013 at 12:08 AM Report abuse rate up rate down Reply

It is sad that America has come to this. They will NEVER shut the government down. They just keep spending more and more money that we don't have. It is sad that the liberals don't have a clue.

September 29 2013 at 10:00 PM Report abuse -1 rate up rate down Reply
1 reply to betty_brock's comment

America has a bad problem, no conservative values anymore. The Chinese are taking over and America soon will become a communist nation ,as most seem to embrace communism.

September 29 2013 at 10:10 PM Report abuse -1 rate up rate down Reply

I can't help but notice more ignorance in America.
Example : Badsomey responds to a post ; " What does did have to do America shutting down ? such a turkey."
Here you go America, this is a prime example of what is wrong with your country. You fail to educate your citizens to be competitive in all fields that require the basic instincts of survival and the promotion of excellence. Your children are lazy and disrespectful of their ancestors, they lack honorable traits. It's no wonder your country is in the state of chaos. You chose a leader with no skills to lead a nation of such stature. America used to be a great nation. Your ancestors would be shocked to see what state it is in now. I came to America to become free to do what I choose to do in life. Now Obama wants to be a dictator like Hideki Tojo.

September 29 2013 at 9:51 PM Report abuse +1 rate up rate down Reply
1 reply to samuri.sansui's comment

Here, here.

September 29 2013 at 9:54 PM Report abuse -1 rate up rate down Reply

I'm badevan / swissmiss / somey.
My attitude is really crummy.
I hate America, it is true.
I guess I just don't have a clue.

September 29 2013 at 9:38 PM Report abuse rate up rate down Reply
1 reply to betty_brock's comment

I'm evan / bachman / gopy / bad.
Capitalism makes me really sad.
Communism makes me sing.
They'll give me food stamps and everything.

September 29 2013 at 9:43 PM Report abuse rate up rate down Reply

I no apologize for anyone, but America's leader is apologizer to the whole globe. He has no honor for his country. Him big Ku sottare.

September 29 2013 at 8:05 PM Report abuse rate up rate down Reply

American government give all taxpayers money to world banks and Wall street, instead of investing money in its people to create positive cash flow on main street, to rebuild businesses. Very bad investment.

September 29 2013 at 1:26 PM Report abuse -1 rate up rate down Reply

Chinese very smart, wait until leader make country worthless and then go in and buy up what is left. No more America, very simple.

September 29 2013 at 1:14 PM Report abuse -1 rate up rate down Reply

Go ahead America rip each other apart while China buys your whole country. I watch and laugh, silly Americans.

September 29 2013 at 11:53 AM Report abuse +4 rate up rate down Reply
1 reply to samuri.sansui's comment

Beijing is also laughing. Never in our wildest dreams did we think that America would so willingly dismantle her infrastructure one factory at a time. It was as simple as waving a few dollars in the face and the promise of an endless supply of cheap labor. The greed of a few has destroyed your country.

September 29 2013 at 12:38 PM Report abuse +1 rate up rate down Reply
2 replies to mchairmanmao's comment

Obama gave keys to America to Xi Jinping, soon Obama borrow more money, he will lose more American manufacturing jobs. Worse than dropping bombs on Hiroshima.

September 29 2013 at 12:47 PM Report abuse +1 rate up rate down

American cities are crumbling, look like bomb hit some places. Silly Americans fight over eggs while stranger steals chickens. Not to smart.

September 29 2013 at 1:04 PM Report abuse +3 rate up rate down

You some funny people

September 29 2013 at 9:57 AM Report abuse +1 rate up rate down Reply

Todd and I are moving to Switzerland soon so I don't care if it all gets shut down. Maybe the shutdown will slow down my ethics violation investigation and I'll have time to move all my money to Switzerland too.

September 29 2013 at 9:57 AM Report abuse +2 rate up rate down Reply
1 reply to swissmissbachmann's comment


September 29 2013 at 10:56 AM Report abuse -10 rate up rate down Reply