Thanks a lot, Washington! Stocks fall again
POSTED: Friday, September 27, 2013 - 7:59am
UPDATED: Friday, September 27, 2013 - 2:09pm
NEW YORK (CNNMoney) — Political leaders in Washington are not inspiring much confidence lately. And that's keeping investors on the sidelines.
With several Congressional crises brewing, the Dow Jones Industrial Average, the S&P 500 and Nasdaq fell slightly. Markets are on track for a losing week. Stocks were up Thursday, but that was after a five-day losing streak.
A possible government shutdown and a rapidly approaching debt limit could prevent the government from paying all its bills.
But while stocks have stalled a bit lately, investors aren't exactly panicking. The recent slump comes just a week after the Dow and S&P 500 hit record highs. All three major indexes are still up between 17% and 25% for the year.
Most investors expect Congress will strike a last-minute deal to raise the debt limit.
What's moving: Shares of new Dow component Nike jumped 6% following quarterly results that beat expectations.
J.C. Penney shares sank 10% on news that the struggling retailer will raise $810 million via a public offering of 84 million shares. While this money will give J.C. Penney a cash cushion for its attempted turnaround, current shareholders will see their stock diluted.
BlackBerry, which announced plans this week to go private, released dismal earnings Friday morning, including a $965 million quarterly loss. Still, these losses were widely anticipated, since BlackBerry had preannounced results late last week. The company's stock rose nearly 2%.
Related: Fear & Greed Index back in fear mode
European markets were drifting lower in afternoon trading. Asian markets closed higher Friday after China announced that it is establishing a free trade zone in Shanghai, driving up the shares of companies with Shanghai in their names. The Nikkei finished lower.
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