Stocks Trade Lower ahead of Senate Vote/Dollar Gains
Stocks Trade Lower ahead of Senate Vote/Dollar Gains
U.S. equity markets were moving lower as investors await the results of the Senate’s vote on a modified bailout plan. Several new parts have been added to the bill in the hope of receiving support for the overall package in the House.
The Senate bill temporarily allows the FDIC to borrow unlimited amounts of money from the Treasury in addition to raising insurance on deposits from the current $100.000 per account to $250,000. The additional coverage amount would be in effect until the end of next year. The Senate is expected to vote today sometime after 19:30 EDT. “We appreciate the work by Senators Reid and McConnell to modify the bill and bring it to the floor for a vote tonight,” White House spokesman Tony Fratto said. “We look forward to the debate, and hope to see strong support.”
In recent trade, the DOW was moving lower by 1.18%. The broader S&P 500 was lower by 1.37% and the NASDAQ by 1.25%. The dollar was gaining 0.33% against the euro and 0.11% on the pound, but was well off session highs. The yen was gaining 0.09% against the dollar as equities weakened. Crude oil futures were recently trading 3.21% lower after the weekly report on inventories said demand for gasoline declined 4.5% from the same period last year while gold futures gained 1.36%.
Today’s report on manufacturing from the Institute of Supply Management said the sector contracted at a faster pace during September as the index fell by the most in 6 years. The report also said employment within the sector continued to contract at a faster pace and that prices increased more slowly than in August.
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