Money Minute: IBM Awaits Investor Reaction; Budget Deal Reopens Gov't

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What will investors focus on now that Congress has finally allowed the government to reopen? That's one of seven money stories you need to know this Thursday.

The crisis in Washington has been averted, at least for another few months, so investors can turn their attention back to the Federal Reserve, economic growth and corporate earnings.

Who are the winners and losers in this dragged out Washington saga? Texas Sen. Ted Cruz, House Speaker John Boehner and other hardline conservatives are facing some heat right now. And it's hard to find many winners -- even though investors may have escaped unscathed.

The Dow Jones industrial average (^DJI) soared 205 points Wednesday, as the Senate's 11th hour agreement triggered a relief rally. The Nasdaq composite index (^IXIC) jumped 45 points and the Standard & Poor's 500 index (^GPSC) moved back within 4 points of the record high set last month.

Standard & Poor's says the government shutdown will cut 0.6 percent from the nation's GDP in the fourth quarter. That's about $24 billion.

This is a big day on the earnings calendar. This morning we're getting upbeat reports from Verizon (VZ), Goldman Sachs (GS) and United Healthcare (UNH). After the closing bell, Google (GOOG) takes center stage.

ibm earnings
Yasuyoshi Chiba, AFP/Getty Images
IBM (IBM) shares are likely to take a big hit after Big Blue reported that sales fell well short of expectations, partly because of weakness in its business in China. Analysts say the prospects for a quick turnaround aren't good.

Fewer homeowners than expected have benefited from the $25 billion agreement worked out last year with five leading banks. The government monitor of the fund also says more people chose to give up their homes in short sales than the number who reduced the amount they owe on their homes.

And Facebook (FB) has some parents up in arms. The social networking company is easing its privacy rules for teenage users that will open their postings to a much wider group. Since teens don't always exercise the best judgment, the move is raising concerns that kids will become more vulnerable to bullying and to sexual predators. For Facebook, it's all about winning back teens and getting more money from advertisers. Don't be surprised to see this new policy revised.

-Produced by Drew Trachtenberg.


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TINKDAY

We get good earnings reports from health care, no surprise,we have the highest cost for health care by far, we rank at the bottom of the list for developed countries for health care and our costs continue to go up, Goldman Sachs can thank the Fed for their good fortune and the tax payer that will have to pay for the trillions of dollars added to the national debt, to continue to bail out the financial markets, Verizon is part of a monopoly, and the only company that really depends on business and idividuals for its survival is seeing its sales go south as is many business that depend on the consumer.

October 17 2013 at 12:32 PM Report abuse rate up rate down Reply
bobnpath

17% was "shutdown" and much of this was subject to offers form states and others to continue operations...the drama queens in DC needs the "show" to stampede opinion...they drive their constituencies as wolves drive a herd.

October 17 2013 at 11:33 AM Report abuse -1 rate up rate down Reply
gkruth

jrb359 echoed my sentiments exactly. This shutdown had no affect on my household, and shows there are a lot of federal bean-counters and navel contemplators drawing checks from the federal gov't who are totally unnecessary. Maybe we should consider most of them "working welfare."
To those few of you who actually produce something of subsance, my apologies.

October 17 2013 at 10:32 AM Report abuse +2 rate up rate down Reply
jrb359

One thing that the shutdown proved was that we really don't need a big, bloated, corrupt, intrusive and inefficient tax payer funded government! The shutdown had absolutely NO impact on my life, but it showed the disrespect the government has toward our Veterans. Good to see those barriers being torn down and dumped in front of the White House. Maybe we Americans still have something to hope for!

October 17 2013 at 10:06 AM Report abuse rate up rate down Reply