Stocks are in danger of bumping into a another Washington wall. We're talking about a budget battle as the fiscal year comes to an end. It could lead to a government shutdown in just a week. What do traders need to know as the budget deadline nears? Yahoo Finance Senior Columnist Mike Santoli has more in the video above.
Bill Clinton is backing Janet Yellen for Fed Chair. In an interview that aired yesterday, the former president said Yellen has, "been right on everything that's happened in this whole aftermath of the financial crisis." Clinton also defended Larry Summers, his former Treasury Secretary who has withdrawn his name from consideration for the job.
Summer was not a hot time at Citi (C). The Financial Times reports the bank had a significant decline in trading revenues. Sources tell the paper the problem was a worse-than-expected slowdown in markets business. Citi's investments are particularly weighted towards interest rates and foreign exchange. It also has the largest exposure of any U.S. bank to emerging markets. Citigroup stock is up 53% over the past year. The company reports earnings on October 15th.
There are more woes for Boeing (BA). One of the Dreamliners it just sold to Norwegian Air is grounded, and the other needed repairs yesterday. Both planes have experienced a number of troubles since they went into service several weeks ago. One of the jumbo jets needs service for problems with the oxygen supply in the cockpit. The other plane had to have a valve replaced before it could fly to New York. For its part Boeing stock is up 67% over the past year and hit a new 52-week high on Thursday.
STOCKS TO WATCH
Blackberry (BBRY) has been down more than 6% in early trading. The move lower follows a 17% plunge on Friday afternoon. Shares fell off a cliff as the company said it would report a quarterly loss of nearly a-billion dollars and lay off 4,500 workers. When you include Friday's losses, BlackBerry stock is down 38% over the last three months. All this is of course a sign that BlackBerry's Z10 and Q10 phones have failed to compete effectively with Android phones and the iPhone.
Speaking of the iPhone, Apple (AAPL) is up more than 4% in early trading. This stock also tumbled on Friday, opening up about $6 a share, but closing down nearly $5. The day brought the debut of the 5S and lower-cost 5C, both of which drew long lines at Apple stores worldwide. We are likely to get an announcement today that sales set a new record. Apple shares are now up 16% over the past three months, when the stock was bouncing off its recent bottom, below $400 a share. The stock remains down 15-percent in 2013.
Red Hat (RHT) is set to report earnings after the closing bell. The software maker is expected to post profits of 33-cents a share, up a nickel from a year ago on revenue that's risen $50-million to about $372-million. Red Hat stock is about 3% in the red since the start of the year, although it has climbed nicely in the last quarter.