STOCKS TUMBLE, DOW LOSES 136 POINTS: Here's What You Need To Know, October 7, 2013

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		Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life Monday, October 7, 2013 Advertisement It's day seven of the government shutdown. First, the scoreboard: Dow: 14,936.2, -136.3, -0.9% S&P 500: 1,676.1, -14.3, -0.8% NASDAQ: 3,770.3, -37.3, -0.9% And now the top stories: The government remains shut down because Congress still doesn't have a budget deal. Even worse, the debt ceiling is approaching and there's still no resolution. "We're not going to pass a clean debt limit increase," said House Speaker John Boehner ABC's George Stephanopoulos on Sunday. "I told the president, there's no way we're going to pass one. The votes are not in the House to pass a clean debt limit. And the president is risking default by not having a conversation with us." "If the debt limit is not raised before the Treasury depletes its cash balance, it could force the Treasury to rapidly eliminate the budget deficit to stay under the debt ceiling," wrote Goldman Sachs Alec Phillips and Kris Dawsey this weekend. "We estimate that the fiscal pullback would amount to as much as 4.2% of GDP (annualized). The effect on quarterly growth rates (rather than levels) could be even greater. If this were allowed to occur, it could lead to a rapid downturn in economic activity if not reversed very quickly." "The S&P 500 likely drops to about 1650 if convincing signs of an imminent deal do not emerge by Friday, but not under 1625 as a deal should come before Treasury exhausts its funds," wrote Deutsche Bank's David Bianco. "A multi-week shutdown will drag on GDP, but 4Q GDP & EPS growth will still be decent. We see missed interest payment risk as nonexistent and would use any weakness next week to buy non-financials." Thanks to the government shutdown, most of the economic stats published by the public data agencies are being delayed.  However, the Federal Reserve is still open and they published the August consumer credit report today. Total credit expanded by $13.6 billion (or 5.4%) in August, this was more than the $12.0 billion expected by economists. Don't Miss: 7 Unreliable Economic Indicators That Move Markets » Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Markets RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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