U.S. stocks declined, snapping a four-day rally in the Standard & Poor’s 500 Index, as lawmakers didnt reach to an agreement to extend the government’s borrowing limit less than two days before the deadline.
The S&P 500 fell 0.7% to 1,698.06 at 4 p.m. in New York. The Dow Jones Industrial Average declined 133.25 points, or 0.9%, to 15,168.01. About 6.2 billion shares changed hands on U.S. exchanges today, which is 6.3% above the three-month average.
“Everyone is somewhat over-caffeinated and a bit jittery in part because of politicians not doing their job,” Chad Morganlander, a Florham Park, New Jersey-based portfolio manager at Stifel Nicolaus & Co., which oversees about $130 billion of assets, said by phone to Bloomberg. “The markets are trading on every news clip and the uncertainty is increasing, which is having an unstabilizing effect in the markets.”
The House revised its plan yesterday, which would extend government funding through Dec. 15, rather than Jan. 15, 2014, said Representative Devin Nunes of California. A vote could come as soon as tonight.
A report issued yesterday showed manufacturing in the New York region grew less than projected in October as sales and hiring didnt impress. The government shutdown has delayed the publication of some closely watched economic data, including the Labor Department’s monthly jobs data.
In corporate news, Home Depot Inc. lost 1.5% to $75.18 and Procter & Gamble Co. sank 1.5% to $77.60 for the biggest slides in the Dow.
Teradata declined 18% to $42.91. The company said adjusted earnings per share were from 69 cents to 70 cents in the third quarter, compared with the average analyst estimate that called for 81 cents. Teradata cut its earnings forecast for the year to $2.70 to $2.80, down from a previous prediction of $3.05 to $3.20.
Citigroup retreated 1.5% to $48.86. The third-biggest U.S. bank reported a $3.23 billion profit that missed estimates as bond trading slumped 26% and U.S. mortgage revenue declined.
Coca-Cola gained 0.7% to $37.66. The world’s largest beverage company said third-quarter profit rose as sales volumes advanced in North America.
FedEx rose 4.1% to $120.08, highest since February 2007. The package delivery company said it would buy back about 10% of its outstanding stock as of Sept. 30. The repurchase program is a part of an existing plan to buy back 7.4 million shares.