Thursday, October 10, 2013

Stocks Slip as Budget Impasse Keeps Fed Employees Grounded

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NEW YORK (TheStreet) -- Major U.S. stock markets opened weaker Friday in the absence of a government jobs report and as investors chose to maneuver cautiously heading into the weekend given that Washington still hasn't found a way to break a budget impasse that is keeping hundreds of thousands of federal employees furloughed.

Because of the halt in many government services, the Bureau of Labor Statistics is operating with a skeleton crew and said Thursday that it won't publish the September jobs report, which was scheduled for Friday.

As the threat of a U.S. public default mounts, House Speaker John Boehner is reportedly proposing there be a combined fiscal package that addresses both the budget legislation and raising the debt ceiling ahead of the Oct. 17 deadline. There reportedly also has been talk of getting a budget negotiation done in exchange for the repeal of a medical device tax tied to the Patient Protection and Affordable Care Act provided that there would be an agreement to keep the government funded for the next six months.

The S&P 500 was down 0.07% to 1,677.55. The Dow Jones Industrial Average was off 0.12% to 14,978.69. The Nasdaq was flat at 3,774.20. Twitter, the microblogging site led by CEO Dick Costolo, filed plans with the Securities and Exchange Commission to go public. Twitter could raise up to $1 billion, a number that for now is just a placeholder used to calculate fees. According to the filing, Twitter's revenue in 2012 was $316.9 million. Revenue for the first six months of 2013 was $253.6 million. The benchmark 10-year Treasury was falling 4/32, lifting the yield to 2.623%. Follow @atwtse -- Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.>

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