Stocks Fall After US Hiring Report Disappoints

by Lance Turner  on Wednesday, Oct. 2, 2013 11:23 am  

Treasury Secretary Jacob Lew told Congress that unless lawmakers act in time, he will run out of money to pay the nation's bills by Oct. 17. Congress must periodically raise the limit on government borrowing to keep U.S. funds flowing, a once-routine matter that has become locked in battles over the federal budget deficit.

"I'm not going out there and beating my chest and saying the world is coming to an end here," said McMillan. "But we face the possibility for significantly greater disruptions than the market is currently pricing in."

The last time there was an impasse over the borrowing limit, in August 2011, it led to a downgrade of the United States' credit rating by Standard & Poor's and a plunge in the stock market.

In government bond trading, the yield on the 10-year Treasury note fell to 2.60 percent from 2.65 percent on Tuesday. The yield, which moves inversely to its price, is at its lowest in almost two months as investors seek to buy less risky assets amid concern about the strength of the economy.

In commodities trading, the price of oil climbed $1.48, or 1.4 percent, to $103.51 a barrel. Gold rose $28, or 2.2 percent, to $1,314 an ounce.

The dollar fell against the euro and the yen.

Among stocks making big moves:

  • Monsanto fell $1.40, or 1.3 percent, to $103.60, after the company reported a wider loss than analysts were expecting because of weak sales of genetically engineered seeds.
  • Global Payments rose $5.27, or 10.4 percent, to $54.96, after the company named a new CEO, sped up share repurchase plans and increased its profit outlook. The company provides electronic transaction processing services for retailers, financial institutions and government agencies.
  • Empire State Realty Trust rose 36 cents, or 2.8 percent, to $13.36 after the company's initial public offering raised about $754 million. The company owns the Empire State Building and other office properties in New York and Conneticut.
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