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US government in shutdown as Senate fails to pass budget; stocks close higher Friday

Last updated: 16:44 21 Jan 2018 GMT, First published: 10:08 19 Jan 2018 GMT

US government in shutdown as Senate fails to pass budget; stocks close higher Friday
  • US share close higher

  • Federal gov't shutdown

  • US crude down

 

The US Federal government was partly shut down on Saturday for the first time since 2013 (when it was shut for 16 days) after a bill on the budget failed to pass in the Senate.

It came after stocks closed higher on Friday on Wall Street.

The Dow Jones added around 53 points at 26,071, while the S&P 500 gained 12.27 at 2,810.

The tech heavy Nasdaq index added over 40 points to stand at 7,336.

The bill to fund the government for the coming weeks did not receive the required 60 votes by Friday. Much has been made in the media that it is around a year to the day that President Trump was inaugurated as the 45th US president (Jan 20 last year).

There will be another vote at 01:00 in the early hours of Monday to try and break the impasse. The US budget must be approved by 1 October - the start of the federal financial year.

Essential services that protect "life or human property" will continue, but employees in the departments of housing, environment, education and commerce will not be going to work on Monday.

In 2013, around 850,000 workers were off work each day for1 6 days. It cost the government US$2bn in lost productivity.

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US stocks are in positive territory going into the close.

The Dow Jones is up 15 points at 26,033. The broader based S&P 500 is up around nine points at 2,807.

The Nasdaq is nearly 32 points higher at 7,327.

In Toronto, the largest stock index there - the TSX - is up over 74 points at 16,359.

US crude  is 0.64% lower at US$63.54.

MID-SESSION

US benchmarks were mixed at mid-session, with the Dow Jones off 58 points to stand at 25,959.

The S&P 500 added 3.97 at 2,801 and the tech heavy Nasdaq  was up 22 at 7,318.

In Toronto, the TSX added over 38 points to stand at 16,323.

In companies, among the notable gainers were Forward Industries Inc (NASDAQ:FORD), which added almost 171% to US$3.36 after the company reported the acquisition of Intelligent Product Solutions.

Elsewhere, Nucana PLC (NASDAQ:NCNA) rose over 61% to US$23.37  as the firm announced plans to begin a Phase 3 study of Acelarin in front-line advanced biliary tract cancer.

On the losing front, PAVmed Inc (NASDAQ:PAVM) shed over 28% to US$1.82 as the company reported a public offering of stock.

OPEN

US stocks started on the front foot (but only just) on Friday - as the Dow Jones added around 15  points to 26,033.

The broader based S&P 500 added 7.45 at 2,805 and the tech heavy Nasdaq added 26 at 7,322.

Wall Street shares may end up in the red by close of play, say commentators, due to the potential for a US government shut-down.

 

In London, FTSE 100 is up around 22 points at 7,723.

 

US crude - West Texas Intermediate - is down 0.59% to US$63.57 a barrel.

In stocks, Nike Inc (NYSE:NKE) added 3.38% to US$66.29 to be top gainer on S&P 500 and the Dow Jones.

IBM (NYSE:IBM) was top loser on the Dow, dropping 3.44% to US$163.31 as it finally reported a quarter of positive revenue growth.

On Thursday, IBM told investors that sales rose 4% in the fourth quarter of 2017 – or 1% when adjusted for currency fluctuations – to US$22.5bn from US$21.8bn a year earlier.

That was ahead of analysts’ estimates by some US$490mln.

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