US stocks rise despite government shutdown

US stocks today moved higher in early trade despite the uncertainty generated by the US government's first shutdown in 17 years.
After 45 minutes of trade, the Dow Jones Industrial Average was up 6.09 points (0.04 per cent) at 15,135.76.
The broad-based S&P 500 tacked on 4.28 (0.25 per cent) at 1,685.83, while the tech-rich Nasdaq Composite Index rose 12.07 (0.32 per cent) to 3,783.55.
The gains followed recent losses as investors grew nervous about a looming government shutdown amid a political impasse over striking a budget deal.
Art Hogan, head of product strategy for Lazard Capital Markets, said investors are likely assuming the shutdown will be short.

"The market is reflecting the assumption it is going to be over in 48 hours," Hogan said. "I don't know if it is going to be the case."

"The longer this situation persists, the more of an adverse effect it is going to have on the economy and the market," Hogan added.
Dow component Merck rose 2.2 per cent after announcing 8,500 more job cuts in an effort to save USD 2.5 billion in costs by the end of 2015. The pharmaceutical giant has been under pressure following the expiration of patents on some key drugs.
Automaker Ford added 1.7 per cent after posting September US sales 6 per cent higher over the year-ago period. Ford said the month marked its best September since 2006.

Online retail giant Amazon tacked on 1.7 per cent after announcing it would hire more than 70,000 full-time temporary workers for the holiday retail season, a 40 per cent rise over last year.
Drugstore chain Walgreens jumped 3.3 per cent after earnings of 73 cents per share bested expectations by a penny.
Campbell Soup Company advanced 0.6 per cent after announcing it reached a definitive agreement to sell its European simple meals business to CVC Capital Partners for 400 million euros (USD 542.2 million).
Cree, which manufactures and sells light emitting diode (LED) and other lighting products, shot up 8.7 per cent after Canaccord Genuity upgraded the stock to "buy" due to the company's success in cutting costs and developing strong technology.

Bond prices were mixed. The yield on the 10-year Treasury was unchanged from yesterday at 2.62 per cent, while the 30-year rose to 3.70 per cent from 3.68 per cent. Prices and yields move inversely.