Stocks ticked higher on Monday as investors weighed the risks of a potential U.S. government shutdown delaying the release of the highly anticipated labor market report due out later this week.
The broader market S&P 500 Index
Market participants are closely monitoring developments out of Washington on Monday as Congressional leaders meet with President Donald Trump ahead of the Wednesday deadline for a new federal budget.
The Department of Labor late Friday said that the Bureau of Labor Statistics will "suspend all operations" if the government shutdowns, stating that "economic data that are scheduled to be released during the lapse will not be released" as part of its contingency plan. That means the government will no longer release several key reports that could inform the Federal Reserve's next policy decision in October, including September's non-farm payrolls report on Friday.
If Congress does pass a stopgap bill to maintain federal funding, investors are looking for monthly jobs numbers that are "just right," meaning not too many additions that would move policymakers to hold a hawkish stance but not too weak as to signal a labor market slowdown. Economists polled by Dow Jones expect September's report to show 51,000 payroll additions with the unemployment rate remaining steady at 4.3%.
In the news, President Trump announced Monday plans to impose a 100% tariff on movies produced outside the United States, potentially impacting major production studios such as Warner Bros. Discovery
"Our movie making business has been stolen from the United States of America, by other Countries, just like stealing 'candy from a baby,' the president wrote in a post on his social media platform Truth Social. "California, with its weak and incompetent Governor, has been particularly hard hit! Therefore, in order to solve this long time, never ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States."
Shares of Electronic Arts
Affinity CEO Jared Kushner highlighted on the company's "bold vision for the future" in a statement announcing the deal.
"I've admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games -- and now enjoys them with his kids -- I couldn't be more excited about what's ahead," Kushner said.
On the economic front, pending home sales unexpectedly rose in August, the National Association of Realtors (NAR) reported Monday, offering a positive sign that lower mortgage rates are attracting both sellers and buyers back into the housing market.
The Pending Home Sales Index rose 4% in August month-to-month to a reading of 74.7, while contract signings increased 3.8% annually.
"Lower mortgage rates are enabling more homebuyers to go under contract. In the Midwest, low mortgage rates combined with high levels of affordability are attracting more buyers compared to other regions," said Lawrence Yun, chief economist at NAR, in a statement.
For Tuesday, market participants will continue to watch the latest news out of Washington D.C. regarding the potential government shutdown, alongside job openings numbers for August and September's consumer confidence reading.
