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Stocks slump on day two of shutdown

Wednesday, October 02, 2013 - 01:56

Oct. 02 - Summary: Stocks fell on second day of U.S. government shutdown; ADP payrolls lower than forecasts; Obama meets with business leaders; Microsoft's Gates role in question; BlackBerry beaten up again. Bobbi Rebell reports.

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Day two of the government shutdown- and a disappointing ADP payroll report- sinking stocks in Wednesday's trading. Payrolls processor ADP said U.S. private employers added 166,000 jobs in September- below forecasts. Friday's monthly government jobs report will be delayed if there is no budget deal by then. With no deal on the budget- worries about the upcoming debt ceiling debate were rising. President Obama met with leaders of the banking community including Goldman Sachs' Lloyd Blankfein: SOUNDBITE: LLOYD BLANKFEIN, CHAIRMAN & CEO, GOLDMAN SACHS (ENGLISH) SAYING: "There is precedent for a government shutdown. There is no precedent for a default. We are the most important economy in the world. We are the reserve currency of the world. Payments have to go out to people. If money doesn't flow in, then money doesn't flow out. So we really haven't seen this before and I'm not anxious to be a part of the process that witnesses it." There are fears that if the shutdown isn't resolved soon- it could take a toll on consumer confidence- and hurt economic growth. Three of the top 20 investors in Microsoft want Bill Gates out as Chairman. Sources tell Reuters they are concerned that in his role he effectively blocks the adoption of new strategies, and would limit the power of whomever replaces exiting CEO Steve Ballmer. Microsoft declined to comment. Shares of Monsanto fell after it reported a larger quarterly loss. But total sales for the leading developer of engineered corn, soybeans and other crops rose- and the company says it is well positioned for 2014. BlackBerry fell to an 11-month low. The smartphone maker disclosed in a regulatory filing it will take a $400 million pre-tax charge related to cost cutting- that's four times the previous estimate. In Europe, the major country indexes were all lower on Wednesday- rattled by the continued U.S. government shutdown.

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Stocks slump on day two of shutdown

Wednesday, October 02, 2013 - 01:56