Market Minute: Investors Assess Budget Battle; Auto Stocks Hum Along

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Investors assess the impact of the budget stalemate, and auto stocks are hitting on all cylinders. Those stories and more are what's in Tuesday's Market Minute.

The Dow Jones industrial average (^DJI) fell 128 points Monday, as the budget showdown rattled investors. The Standard & Poor's 500 index (^GPSC) and the Nasdaq composite index (^IXIC) both lost 10 points.

Despite the recent selling, the major averages still closed out the third quarter with solid gains. The Dow added 1.5 percent and the Nasdaq soared nearly 11 percent.

The last government shutdown -- back in 1995 -- led to small market losses. But in the month after the impasse was resolved, the S&P 500 rallied by 10 percent.
Detroit Struggles To Re-Build A Bankrupt City Amidst Poverty And Blight
Andrew Burton/Getty Images
We're watching auto stocks today with monthly sales reports starting to roll in. Sales have been running at their best levels since before the financial crisis began, but we're expected slight declines for September -- partly because of a calendar quirk.

Meanwhile, stock prices have soared. General Motors (GM) is up 58 percent over the past year; Ford Motor (F) shares have jumped 71 percent; and luxury carmaker Tesla Motors (TSLA) has soared by more than 500 percent.

Also keep an eye on health insurers such as UnitedHealth Group (UNH), Aetna (AET), Wellpoint (WLP) and Humana (HUM), as consumers start to check out the plans available under the Obamacare exchanges.

Amazon (AMZN) is planning to add 70,000 jobs for the holiday shopping season. That's up from 50,000 last year. And Walmart (WMT) is planning its biggest ever warehouse, in Bethlehem, Pa., to fulfill online orders.

Shares of J.C. Penney (JCP) continue to slide. They closed Monday at $8.80 a share, their lowest level in more than 30 years. Penney is having trouble attracting investors and customers.

Facebook (FB) will soon allow users to search the site for status updates and posts. It will roll out the new tool slowly, first to a select group of users.

And Walt Disney (DIS) and Dish Network (DISH) have agreed to a short-term extension in their current round of talks, without blacking out any ESPN, ABC or other Disney-owned programming.

-Produced by Drew Trachtenberg.


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ngagnon558

in that case, the libs should be ecstatic about the shutdown if i will affect the EVIL Wall Street....
so no story here

October 01 2013 at 12:51 PM Report abuse rate up rate down Reply
c12cnt41

Don't see an immediate impact on the shutdown.

October 01 2013 at 12:48 PM Report abuse rate up rate down Reply
indking

we are to blame for this mess.... The same old coots keep getting voted back in instead of being voted out for their grandstand tactics! Dem as well as Rep!!! Term limits!!!!!!

October 01 2013 at 12:15 PM Report abuse rate up rate down Reply
toosmart4u

In the next election it is time to get rid of the republicans, they really want to hurt this country.

October 01 2013 at 11:41 AM Report abuse -2 rate up rate down Reply
1 reply to toosmart4u's comment
ngagnon558

you need to change your moniker to toodumbtosee

October 01 2013 at 12:52 PM Report abuse rate up rate down Reply
Big John

Can anyone tell me why my GM stock is worth no more than the initial stock offering I bought it at?

October 01 2013 at 10:39 AM Report abuse +2 rate up rate down Reply
1 reply to Big John's comment
ngagnon558

because it sucks???

October 01 2013 at 12:51 PM Report abuse rate up rate down Reply
Judith

Thank you GOP/TP for again slowing, if not impeding, economic growth. (read sarcasm)

October 01 2013 at 9:34 AM Report abuse -1 rate up rate down Reply