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Midday Market Update

Stocks Rise as Washington Remains in Focus


U.S. Market    
Stocks rose this morning as investors continued to weigh the impact of the government shutdown.

As Democrats and Republicans remained at an impasse on the Federal budget, Treasury Secretary Jack Lew warned of dire consequences if Congress didn’t raise the debt ceiling. Lew said that stocks could tumble and that the fallout could be more damaging than the 2008 financial crisis. 

The monthly payroll and unemployment rate report due today was delayed due to the shutdown.

At midday the DowS&P 500 and Nasdaq were up 0.3%, 0.4% and 0.7% respectively.

Stocks on the Move
Twitter's S-1 filing became public late Thursday, several weeks after the documents were confidentially filed with the Securities and Exchange Commission under the JOBS Act. Twitter has become a  meaningful social networking company, translating tweets (messages) among 218 million monthly active users into $448 million in revenue over the past four quarters. Advertising products delivered more than 85% of this revenue (or $389 million), more than  LinkedIn (LNKD) earned from advertising over the same period. The company is not yet generating positive GAAP profits or free cash flow, although operating cash flow turned positive over the first six months of 2013.

Foreign Markets
European stocks were mostly higher on the day. In late trading, the FTSE 100, Germany’s DAX and the Paris CAC were up 0.1%, 0.3% and 0.8% respectively.

Asian markets were lower on the day. The Nikkei 225  was off 0.9% while the Hang Seng fell 0.3%. 

Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.