Market Update Report 10/15/2013

October 15, 2013
The KUIK Market Update for Tuesday, October 15:
Markets are down.
Index Direction Change Units Last Time Change
Dow Down                    (67) points           15,237 8:10 AM
S&P500 Down -0.38% percent             1,704            (6.53)
Nasdaq Composite Down -0.20% percent             3,808            (7.71)
30 Year Treasury Up                       2 Basis Points               3.76 Annual Yield
Politico reports that House Republicans will push a separate bill to reopen the federal government and raise the U.S. debt limit. The bill comes as the Senate is closing in on a deal to fund government operations through Jan. 15 and extend the borrowing limit until Feb. 7. The House bill contains the same dates but delays the medical-device tax for two years and eliminates the Treasury’s capability to use extraordinary measures accounting gimicks. 
The Federal Reserve’s large holdings of treasury securities won’t cause the central bank to deviate from the course of its monetary policy, according to  New York Federal Reserve President William Dudley. In a speech today in Mexico City, Dudley noted that some analysts think the Fed  might not hike short-term rates when necessary because that would decrease the value of the Fed’s holdings. Dudley argues that the holdings creates incentives for the Fed to keep inflation in check because inflation would cause a rise in long-term interest rates, which would put even greater pressure on the bank’s balance sheet.
Oil futures fell as politicians appeared to make progress toward a deal to end Washington’s budget standoff and avert a default, while traders also focused on the first day of talks between Iran and  the U.S., Russia, China, France, Britain, and Germany in Geneva that could lead to an easing of sanctions.
Serving the West Side first, I am Bill Roller of BR Capital for AM 1360 KUIK.
http://www.marketwatch.com/story/house-republicans-to-push-own-debt-shutdown-bill-2013-10-15-9915242
http://www.marketwatch.com/story/empire-state-index-moderates-to-15-in-october-2013-10-15http://www.marketwatch.com/story/feds-dudley-balance-sheet-wont-impact-policy-2013-10-15
http://www.marketwatch.com/story/gold-dips-as-lawmakers-toil-in-washington-2013-10-14?dist=markets
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