Day 3 Of The U.S. Government Shutdown

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As a U.S. government shutdown enters its third day, Wall Street was on track to start the week slightly lower, while investors assessed a bout of multi-billion corporate mergers and acquisitions.

During premarket trading on Monday, Juno Therapuetics) increased nearly 27 percent following Celgene’s agreement to purchase the biotech for roughly $9 billion in cash.

In other pharma news, shares in U.S. hemophilia specialist Bioverativ skyrocketed 63 percent following French healthcare group Sanofi deal to purchase the drugmaker for $11.6 billion.

Insurer AIG agreed to purchase reinsurer Validus Holdings for $5.56 billion, sending Validus’ shares up 16 percent.

On Monday, the Senate is scheduled to vote around noon after the failed efforts of Democrats and Republicans to come to an agreement on Sunday to fund government operations until February 8.

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At 7:00 a.m. EST, Dow e-minis were down 48 points, or 0.18 percent, with 17,075 contracts traded.  S&P 500 e-minis were down 2 points, or 0.07 percent, with 85,984 contracts traded.  Nasdaq 100 e-minis were down 3.25 points, or 0.05 percent, with contracts 21,978 traded.

Both he S&P 500 and the Nasdaq achieved record closing highs on Friday, while investors continued to neglect the idea of a government shutdown and concentrated on positive quarterly earnings.

Out of the fifty-three S&P 500 companies that have reported through Friday, 79.2 percent have surpassed their earnings estimates, according to data.

Halliburton Co announced a much larger-than-expected quarterly profit for the fourth quarter, profiting from a shale-driven surge in U.S. oil production. The company’s shares were up around 1 percent.

On Monday, Netflix is due to report its quarterly results after market closes. Shares of the company were up 1 percent.

The week we will see a lot of economic data. Investors will be able to get an idea of the nation’s economic health for the fourth quarter, as the GDP growth numbers as well as the Fed’s favored inflation measure, personal consumption expenditure, is due at the end of this week.

 

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