Stocks edge higher and dollar weakens amid government shutdown

Stocks rose modestly Wednesday after the government shut down. Gold futures set another high, hitting $3,900, while Treasury yields and the dollar slipped. The open was lower, reflecting shutdown concerns.

Stocks perked up modestly later, driven in part by sharp gains across the pharmaceutical sector following Tuesday’s announcements. Wednesday morning’s ADP employment report showed private employers shed about 32,000 positions last month, undershooting consensus forecasts that they would add roughly 45,000 jobs.

Key economic data that the Federal Reserve would typically consider for policy is likely to be disrupted. That includes the September jobs report from the Bureau of Labor Statistics, which was scheduled for release Friday.

A prolonged shutdown could also delay the release of the consumer-price index due in mid-October, though generally speaking investors are not expecting a ton of fireworks.

“Shutdowns tend to raise noise more than change trend,” said Larry Adam, chief investment officer at Raymond James. The White House withdrew its nominees to lead the Bureau of Labor Statistics and the Commodity Futures Trading Commission. The BLS has lacked a permanent leader since President Trump fired Erika McEntarfer.

Pfizer and Merck rose for a second day after the White House unveiled a direct to consumer drug buying website for Americans. So while the government shutdown is likely to negatively affect certain aspects of the economy, others may continue to thrive.

The length of the government shutdown will likely have an effect on how acutely certain elements of the stock market are hit, but for now, the stock market looks in healthy shape.