With a little over half an hour to the close in New York, the Dow was trading down 109 points or 0.73% at 14,827, with the S&P 500 off 0.81% and the NASDAQ 100 1.55% lower on the day. The Dow is now down almost 6% from its record high, which was achieved in the middle of September.
President Obama asserted that the US will pay its bills but acknowledged creditors will not be calmed until Congress takes action, saying until that happens there will be a ‘cloud over US economic credibility’.
He said that members of the Senate and Congress seeking to downplay the consequences of a default made him nervous, but that he believed there would be enough votes in Congress ‘to take this drama off the table.’
President’s Obama’s claims that he is willing to negotiate echo earlier comments from House Speaker John Boehner, but we are yet to see action from either sides to back up these words.
The government shutdown has caused the postponement of several economic reports, including today’s US trade balance data. This puts added importance on quarterly reports from corporate America, which will begin to come in thick and fast in the next few weeks. We begin tonight with Alcoa, which reports after the stock market closes in New York and things will pick up pace at the end of the week when we hear from banking giants JP Morgan and Wells Fargo.