Money Minute: Yahoo Reduces Outlook; Fitch Places U.S. on Ratings Watch

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A potentially costly warning to the U.S. That's one of six money stories you need to know this Wednesday.

The credit ratings agency Fitch has placed the United States on its watch list with the chance of a downgrade if officials in Washington fail to break the budget and debt ceiling deadlock. You'll remember the market reaction two years ago when Standard & Poor's cut its rating on U.S. debt: the Dow plunged more than 600 points in one day. Fitch says the failure to end the standoff would cast "doubt over the full faith and credit of the U.S." A ratings downgrade could cost the government tens of billions of dollars in extra interest rate payments.

The Dow Jones industrial average (^DJI) lost 133 points Tuesday, as investor concern ramped up when the U.S. House threw up new obstacles to a compromise deal. At the same time, the uncertainty has sent the yield, or interest rate, on short-term Treasury bills to the highest level in nearly five years. And the closer we get to tomorrow's debt ceiling deadline, the higher the anxiety level will go.

Key Speakers At The TechCrunch Disrupt SF 2013 Summit
David Paul Morris/Bloomberg via Getty ImagesYahoo CEO Marissa Mayer
Yahoo's (YHOO) recovery still has a ways to go. The Internet company reported lower earnings and sales in the third quarter. Yahoo also reduced its outlook for the year. Marissa Mayer has now been CEO for more than a year -- and her honeymoon with Wall Street may be coming to an end.

Walmart Stores (WMT) has cut its sales outlook. It's worried about the impact of the government shutdown on consumer spending, especially during the holiday season.

Twitter has decided to list its much-ballyhooed initial public offering at the NYSE, instead of the Nasdaq. The company didn't say so, but the Nasdaq's fumble on Facebook's (FB) IPO last year may have been a factor.

And, are you ready for some more football? The Wall Street Journal reports the National Football League is considering a second game on some Thursday nights. The double-header game could be sold to a new TV partner, boosting revenue for the league. Thursday has always been a big night for TV viewing, but the games now being shown on the NFL Network haven't generated the buzz the league had hoped for.

-Produced by Drew Trachtenberg.

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12 Comments

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vidya.devadiga

hi

October 17 2013 at 4:43 AM Report abuse rate up rate down Reply
jskemp4you

We do not need to default. What is needed is a plan. I'm fed up of seeing so called gurus on the TV who NEVER say that they have an alternative "solution " to just kicking cans down a road. How can anyone get excited at the expected solution to the current "crisis". It is just BS of the highest order.
We need a leader. Someone with the ability to create a meaningful plan and then ensure it is carried out.

October 16 2013 at 2:11 PM Report abuse rate up rate down Reply
TINKDAY

We need to default, the debt in thie country is far greater than the 18 trillion the government reports and the debt is not due to the social programs, like SS, which has always payed for it self until the government started borrowing the excess SS money in 1976. The plan was set up to build excess, to cover the higher costs coming do to a older population and increased benefits, but the politicians screwed that,now they do not want to repay what they should never have taken out in the firest place. And lets not forget the losses we have do to the crooks running the banks, wall street, and the insurance companies, even the government, put the losses at at least 14 trillion and still growing and gues who is paying that. The SEC is a total wast of money, the politicians protect the real crooks and the bond rating agencies, that committed tons of acounting fraud nothing happened to them, still getting paychecks and bonuses and we are still using them to rate commercial paper, wow.All of this debt will be dumped on the middle and poor classes until their is nothing left and than we will finally get the changes we need, first and formost, every demo. and G.O.P holding office needs to be fired and than we need to go back and have real accountability on who caused the losses.

October 16 2013 at 12:32 PM Report abuse -3 rate up rate down Reply
gtemplene

I dont know what planet your on but as I look the market is up 156 points.

October 16 2013 at 11:00 AM Report abuse rate up rate down Reply
1 reply to gtemplene's comment
TINKDAY

The stock market no longer is a measure of the true economy in this country.

October 16 2013 at 12:34 PM Report abuse +1 rate up rate down Reply
Ray

Why don't the Dems tell the truth. Money will still be coming into the government every day. Investors will still get paid they won't be in default. It just that the funds received will have to be prioritized as they come in. There should never be a "default" as BO and the DEMS say. Think about it. The total misinformation spewed by the Socialists is amazing.

October 16 2013 at 10:44 AM Report abuse +1 rate up rate down Reply
1 reply to Ray's comment
sales5ralls

Because fear mongering is their main leverage.

October 16 2013 at 11:56 AM Report abuse -1 rate up rate down Reply
joejyoti

Have to agree with you tomjohnraus 100% talk about throwing good money after bad, this is the ultimate example!!

October 16 2013 at 9:48 AM Report abuse rate up rate down Reply
bobbsafe

America was built on hope not greed.Here we are at the brink of disaster - and Wall Steet is Rallying. Do you think the average invester is saying - we might default on our debt - I think I will buy stocks today? No - it is the behind the sceens forces in conjunction with our own government (Federal Reserve) making the rich richer at the future expense of main street America.
I miss the days of accountability, working through problems through effort, and rules that were actually applied.

October 16 2013 at 9:40 AM Report abuse +5 rate up rate down Reply
joejyoti

Don't sweat it they will raise the debt ceiling and the stock market will be over 16,000, it's all a bunch of baloney anyway. The US economy is being propped up on monopoly money anyway.

October 16 2013 at 9:29 AM Report abuse +4 rate up rate down Reply
crazychris379

how many times are you going to beat this dead horse
the people already know better

October 16 2013 at 9:27 AM Report abuse +1 rate up rate down Reply
tomjohnkraus

Anybody who is foolish enough to loan the U.S. money, will eventually get what they deserve.

October 16 2013 at 9:24 AM Report abuse +5 rate up rate down Reply