Stock fervor too strong for government shutdown concerns

|By:, SA News Editor

Stocks again extended their YTD run-up, as optimism over earnings proved too much for any real worries over the threat of a government shutdown.

A late wave of buying pushed the S&P 500, Nasdaq and Russell 2000 to new record closing highs, while the Dow came in just shy; for the week, the Dow and Nasdaq both climbed 1% and the S&P rose 0.9%.

"The prospect of a government shutdown isn't putting a lid on this boiling market - investors simply aren't fazed," says E-Trade VP of investment strategy Mike Loewengart. "For traders, many are looking beyond the beltway and finding fundamentals in U.S. companies as sound as they've been in a long time."

In today's trade, nine of the 11 S&P sectors advanced, led by consumer staples (+1.1%) and consumer discretionary (+0.9%), as both groups were paced by analyst upgrades on Philip Morris and Nike, respectively.

U.S. Treasuries sold off, sending yields higher across the curve with the benchmark 10-year yield jumping 3 bps to 2.64%, its highest level since mid-2014, and the two-year yield rising 2 bps to 2.05%.

U.S. WTI crude oil fell 0.9% to settle at $63.37/bbl for its first weekly loss in five weeks.

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