Good morning. US stock futures moved lower in Monday morning trading as investors digested news of a change in ratings outlook on the US.
🛑 US government shutdown averted…for now
The proposal, which omits new funding for Israel and Ukraine, would extend funding for some government agencies to January, and others to February.
The extensions until January 19th will apply to funding for the departments of Veterans Affairs, Energy, Agriculture, Transportation, as well as Housing and Urban Development.
Illustrating the critical implications of a pending government shutdown, Moody’s Investor Services lowered the US’ credit rating outlook to negative from stable.
💡 So what: A U.S. government shutdown is a bit like an unexpected office closure but on a much larger scale. If lawmakers can't agree on a budget or a temporary funding measure, certain federal agencies and programs might go into hibernation. That means non-essential government services could pause, federal employees might be furloughed (sent on unpaid leave), and things like national parks, museums, and immigration courts might temporarily close their doors.
Monday - Fed Governor Cook Speaks
Tuesday - US Consumer Price Index, Fed Vice Chair Jefferson Speaks
Wednesday - New York Fed President John Williams Speaks
Thursday - Initial Jobless Claims (wk end Nov 10th), Philadelphia Fed Manufacturing Survey, Fed Governor Waller Speaks
Friday - No Major Economic News
🎥 Hollywood actors union close out strike with new deals
💸 Moody’s switches tone on US credit rating outlook
WHY: Moody’s is the only of the three main credit companies with a top rating on the US after Fitch Ratings downgraded the US government in August following the latest debt ceiling battle. S&P Global Ratings stripped the US of its top score in 2011 amid that year’s debt limit crisis.
💰 Americans continue to dip into their savings
WHY: There are many tax implications for making withdrawals from retirement accounts. A withdrawal from a 401K account is typically taxed as ordinary income.
🚫 US Treasury Secretary warns Chinese firms of consequences for Russia support
WHY: Yellen added that the Chinese firms in question were private and said she was not suggesting that this was occurring with knowledge from the Chinese government.
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