Closing Bell: Wall Street Rebounds on Modest Optimism About Shutdown

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Trading On The Floor Of The NYSE As S&P 500 Falls Most In A Month On Federal Shutdown
Scott Eells/Bloomberg via Getty Images
Stocks rose Friday on Wall Street, recovering from recent losses even as investors remained focused on the ongoing budget stalemate in Washington, where a partial shutdown of the federal government has weighed on markets all week. It appears that investors foresee the legislative bickering over the budget and debt limit coming to an end sooner rather than later, despite the rhetoric from Capitol Hill.

The Dow Jones industrial average (^DJI) rose 76. points, or 5 percent, to 15,073, the Standard & Poor's 500 index (^GPSC) gained 12 points, or 0.7 percent, to 1,690 and the Nasdaq composite index (^IXIC) advanced 33 points, or 0.9 percent, to 3,808.

Washington appears no closer to resolving the government shutdown or the looming deadline later this month to increase the government's borrowing limit so it can continue to pay its bills. On Friday, Republicans in the House of Representatives said they would continue to pass small spending bills that would fund select parts of the government, such as Head Start, but that tactic has inspired no interest from Democrats in the Senate.

The political noise out of Washington has come to dominate nearly all conversations on Wall Street. Under normal circumstances, traders would have the government's monthly jobs report to parse through on the first Friday of the month. But the shutdown has forced the Labor Department to postpone the release of September's data for at least the foreseeable future.

The S&P's biggest loser was struggling retailer J.C. Penney (JCP), which fell to a 31-year low earlier in the day, hitting $7.82 a share. The stock ended Friday's session down 6.7 percent at $7.85 a share.

In commodities trading, U.S. benchmark crude for November delivery rose 30 cents to $103.61 a barrel, while gold lost $7.60 to close the week at $1,309.80 an ounce.

In corporate news, Twitter Inc. gave potential investors their first glance at its financials Thursday when it publicly filed documents for an initial public offering. The information showed that revenue at the social networking company almost tripled in 2012, though it posted a loss in the first half of 2013.

Tweeter Home Entertainment Group, a specialty consumer electronics company that went bankrupt in 2007, saw its most active day of trading in more than six years Friday, even though it has nothing to do with the social media site. The stock, which trades over the counter, closed Thursday at a price of less than a penny a share, and Friday hit a high of 15 cents a share, before paring gains to trade at 5 cents, a 669 percent rise. More than 11.7 million shares had traded by midday. Tweeter trades over the counter, under the "TWTRQ" symbol, while Twitter in its IPO proposed using "TWTR."

Shares of electric car maker Tesla Motors (TSLA) made a partial recovery Friday after two days of big declines following news of a fire in one of its $70,000 Model S cars. Tesla's stock, which has risen 400 percent so far this year, advanced 4.4 percent to $180.95. The carmaker's shares lost more than 10 percent of their value after news of the fire broke Wednesday.

More Stocks in the News:
  • Shares of sandwich maker Potbelly (PBPB) more than doubled in their Nasdaq trading debut Friday, soaring soared 123.5 percent to $31.29. The company priced its initial public offering of 7.5 million shares at $14 a share, above the projected range of $12 to $13 each.
  • Pharmacyclics (PCYC) rose 2.9 percent to $139.80 after a Wells Fargo (WFC) analyst said he expects the biotechnology company's potential drug, ibrutinib, to become one of the most common primary treatments for blood cancer and generate billions of dollars in annual sales.
  • Taser (TASR) fell after the company lowered prices for some of its Axon police cameras and Evidence.com service. Shares of Taser, best known for its stun guns, fell 5.8 percent to $14.04.
  • Shares of Constellation Brands (STZ) hit a 52-week high, continuing to gain after the wine, beer and liquor company reported higher quarterly results that topped expectations. Shares ended Friday trading up 3 percent to $61.96.
  • Cherry Hill Mortgage Investment (CHMI) fell 8.5 percent to $18.30 in its trading debut Friday after the company raised $130 million in its initial public offering. The mortgage investment company priced its IPO at $20 a share.
  • Railroad company CSX (CSX) fell 0.5 percent to $25.55 after an analyst cut his rating on the stock, uncertainty over demand for coal.
What to Watch Monday:
  • Polling firm Gallup releases its measure of U.S. consumer spending for September at 8:30 a.m. Eastern time.
  • The Federal Reserve releases consumer credit data for August at 3 p.m.
Note: Many scheduled government reports have been postponed indefinitely because of the partial government shutdown.

-Compiled from staff and wire reports.



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37 Comments

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fromme.stutes

my best friend's aunt makes $63/hour on the computer. She has been fired for 7 months but last month her check was $20522 just working on the computer for a few hours. important link ....

Jobs23.Cℴℳ

October 06 2013 at 10:10 AM Report abuse +1 rate up rate down Reply
betty_brock

It is awful that the liberals want to destroy America with their gimme, gimme, gimme attitude.

October 05 2013 at 10:23 PM Report abuse -7 rate up rate down Reply
betty_brock

Poopy ole Evan is at it again. Copy and post doesn't cut it. Think for yourself.

October 05 2013 at 10:20 PM Report abuse -8 rate up rate down Reply
ds3inc

So the prez gets to delay the law by postponing the employer mandate for a year, but congress can't do the same for the individual mandate which if it wasn't for SPOTUS redefining it as a tax would be completely against the commerce laws of the constitution.
Most people I know could use the Tax relief...thanks congress keep on fighting

October 05 2013 at 1:53 AM Report abuse -10 rate up rate down Reply
ds3inc

but the prez told them to worry, a melt down would a good twist to this man made disaster

October 05 2013 at 1:48 AM Report abuse -9 rate up rate down Reply
Capt:Kurt Elwood

Sitting here thinking...If the Hawaiian people take back there isalnd and deside not be the 50th state anymore to get out of this obomba health care. { they half to get it to } Would and could the other states follow suit?

October 04 2013 at 11:43 PM Report abuse -9 rate up rate down Reply
1 reply to Capt:Kurt Elwood's comment
hugh_geenormous

All 57 of them?

October 05 2013 at 1:06 AM Report abuse -6 rate up rate down Reply
betty_brock

It is disgraceful that the liberals want to destroy this country.

October 04 2013 at 10:52 PM Report abuse -10 rate up rate down Reply
betty_brock

Don't you liberal deadbeats have anything to do but stay on this board 24-7? Get jobs.

October 04 2013 at 10:51 PM Report abuse -8 rate up rate down Reply
chris1011

the tea party fueled government shutdown is costing America $300 million dollars a day - nothing conservative about that.

October 04 2013 at 8:10 PM Report abuse +10 rate up rate down Reply
2 replies to chris1011's comment
teaparty2implode

Not to mention millions of dollars to repeal the ACA 43 times.

October 04 2013 at 8:36 PM Report abuse +12 rate up rate down Reply
1 reply to teaparty2implode's comment
ds3inc

and 6.2 trillion to implement it according to the GOA (Government Office of Accounting)

October 05 2013 at 1:56 AM Report abuse -6 rate up rate down
betty_brock

Commie

October 04 2013 at 10:51 PM Report abuse -8 rate up rate down Reply
1 reply to betty_brock's comment
betty_brock

You can't deny that you and all libs are Commies, Evan.

October 05 2013 at 10:22 PM Report abuse -4 rate up rate down
chris1011

Let me explain what's going on with the shutdown. You have to know the monty python movie 'monty python and the holy grail'. There's a scene where two knights are fighting. One loses and arm, then a leg, then the other arm, then the other leg and he's just a torso. So the first knight walks away and says he's won and the torso says 'no you haven't, i can still bite you on the ankle.' and THAT is how the republicans are: armless, legless, brainless but insisting (stupidly) that they've 'won'.
The lesson is that you cannot talk a delusional idiot out of their beliefs. They are not smart enough to understand logic

October 04 2013 at 8:02 PM Report abuse +4 rate up rate down Reply
1 reply to chris1011's comment
hugh_geenormous

STFU....you didn't get the movie title or.the line correct. You people hear something that you think sounds cool, then spread misinformation, taxing your brain cell.

I like the fight. It's good to see the Repubs doing what's right and ignoring tbe politics and the praetorian media.

October 05 2013 at 1:11 AM Report abuse -4 rate up rate down Reply