The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019 {{ new Date().getDay() }}

New York City (AFP) – U.S. stocks Monday finished lower as a partial U.S. government shutdown entered its second week with no sign of resolution.

At the closing bell, the Dow Jones Industrial Average fell 135.76 (0.90 percent) to 14,936.82.

The broad-based S&P 500 tumbled 14.31 (0.85 percent) to 1,676.19, while the tech-rich Nasdaq Composite Index gave up 37.36 (0.98 percent) at 3,770.40.

The paralysis in Washington continued to weigh on markets. Analysts have expressed particular concern that the fight over the budget will stymie efforts to raise the budget ceiling, resulting in a U.S. default with damaging economic consequences.

However, the market still considers a U.S. default unlikely, said Peter Cardillo, chief market economist at Rockwell Global Capital.

“If the markets were really fearful of a default…. we wouldn’t be down a half a percent or three-quarters of a percent,” Cardillo said. “We would be down a heck of a lot more.”

Banking equities were among the hardest-hit. Dow component JPMorgan Chase fell 1.6 percent, Citigroup dropped 2.0 percent and Wells Fargo dipped 1.7 percent.

Dow component Boeing dropped 0.4 percent after Japan Airlines announced a massive $9.5 billion aircraft order with competitor Airbus. The decision challenged Boeing’s dominance in the Japanese market.

Dow component IBM took a 1.1 percent hit after Barclays downgraded the stock to “equal weight” due to the lack of near-term catalysts for the stock.

Other technology companies also suffered, including Microsoft (down 1.7 percent), Amazon (down 2.8 percent), Priceline (down 1.9 percent) and eBay (down 1.8 percent).

An exception was Apple, which advanced 1.0 percent after Jefferies upgraded the stock to “buy” following meetings with Asian suppliers who were enthusiastic about upcoming Apple products.

Cooper Tire & Rubber tumbled 12.8 percent as doubts rose over the prospects of a $2.5 billion takeover of the company by India’s Apollo Tyres. Apollo has sought a reduction in the price of the transaction, but Cooper maintains no cut in price is warranted.

Defense contractor Lockheed Martin rose 0.9 percent after the company reduced the number of workers sent home without pay to 2,400 from 3,000 following the Pentagon’s decision to recall most of its furloughed employees.

Bond prices rose. The yield on the 10-year U.S. Treasury slipped to 2.63 percent from 2.65 percent Friday, while the yield on the 30-year Treasury dropped to 3.70 percent from 3.73 percent. Prices and yields move inversely.

 

AFP Photo/Stan Honda

Advertising

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Donald Trump

Image via Twitter

A year after former President Donald Trump left the White House and Joe Biden was sworn in as president of the United States, Trump continues to have considerable influence in the Republican Party. Sen. Lindsey Graham of South Carolina, a former Trump critic turned Trump sycophant, recently told Fox News that having a “working relationship” with Trump must be a litmus test for anyone in a GOP leadership role in Congress. But an NBC News poll, conducted in January 14-18, 2022, finds that many Republican voters identify as Republicans first and Trump supporters second.

Analyzing that poll in the New York Times on January 21, reporters Leah Askarinam and Blake Hounshell, explain, “Buried in a new survey published today is a fascinating nugget that suggests the Republican Party may not be as devoted to Trump as we’ve long assumed. Roughly every month for the last several years, pollsters for NBC News have asked: ‘Do you consider yourself to be more of a supporter of Donald Trump or more of a supporter of the Republican Party?’ Over most of that time, Republicans have replied that they saw themselves as Trump supporters first.”

Keep reading... Show less

Ivanka Trump, right

Image via @Huffington Post

As House Speaker Nancy Pelosi’s select committee on the January 6, 2021 insurrection moves along, it is examining Ivanka Trump’s actions that day — especially the former White House senior adviser urging her father, then- President Donald Trump, to call off his supporters when the U.S. Capitol Building was under attack. This week, Ivanka Trump’s importance to the committee is examined in a column by liberal Washington Post opinion writer Greg Sargent and an article by blogger Marcy Wheeler.

Sargent notes that the committee’s “new focus on Ivanka Trump” shows that it “is developing an unexpectedly comprehensive picture of how inextricably linked the violence was to a genuine plot to thwart a legitimately elected government from taking power.”

Keep reading... Show less
x
{{ post.roar_specific_data.api_data.analytics }}