In Business and Financial News:

Now Hiring…

The private sector added fewer jobs in September than expected. On Wednesday, the ADP (Automatic Data Processing) survey was released showing US business added 166,000 jobs in September, slightly more than July and August. Analysts, however, had expected the number to be closer to 180,000 jobs. The report also revised August to 159,000 and July to 161,000; both revisions was lower than previous estimates. Overall, the report showed hiring in the private sector slightly below the monthly average of 175,000 jobs for the year.

KJ’s Take: Normally there are two reports about jobs, the ADP and NFP (Non-Farm Payroll). Due to the government shut down, the NFP report will not be released on Friday. The ADP didn’t hold a lot of surprises. However you feel about ObamaCare, it was always common knowledge it would have some kind of effect on hiring and job creation until all of the details are ironed out.

On Fire…

Shares of electric car maker Tesla Motors (TSLA) tumbled on Wednesday after a video, posted on the internet, showed one of its models on fire. The video, posted on automobile site Jalopnik.com, showed the front of a Tesla Model S in flames after it hit debris on the road in Seattle. In a statement issued by Tesla on Wednesday, the company said that the fire was caused by substantial damage when the driver hit a large metal object. The flames were contained in the front of the vehicle, as designed.

Shares of the automotive maker soared after Tesla CEO Elon Musk said in August that the National Highway Traffic Safety Administration had given the highest safety rating in its history to the Model S sedan.

No Super Bowl Ads…

General Motors (GM) has decided not to purchase airtime during the Super Bowl. Instead, GM will be renewing its focus on getting better value from its ad budget, stating that the potential $3.5 million for a 30-second commercial wasn’t bringing in a big enough return on its investment. The move comes days after the automaker announced that it would be dropping advertising on Facebook due to a lack of effectiveness.

KJ’s Take: Could this be the first step in a shift away from 30-second movies and back to actual commercials and ad campaigns????

Leaving The Door Slightly Open..

Securities and Exchange Commission, Mary Jo White left the door opened for a potential overhaul of financial-market oversight. Saying Tuesday, the special regulatory status of U.S. exchanges may not best serve investors or public companies. Adding the SEC should review whether the oversight of exchanges “continues to meet the needs of investors and public companies,” Ms. White said.

For years Stock exchanges have been responsible for policing the trading activities they host—known as self-regulation or SRO (Self-Regulatory Organization). As competition among exchanges and other trading platforms have ramped up in recent years, critics say exchanges have fallen short in their regulatory responsibilities as they seek to engage trading to their systems. As self-regulatory organizations, exchanges write market rules and supervise trading activity, though much of the trading function has been assumed, the Financial Industry Regulatory Authority, Wall Street’s self-funded protection dog.

The SEC examination of the role of SRO’s comes as competition between exchanges and Wall Street firms intensifies for a shrinking number of stock orders. Last month, dark pools and other privately run trading venues which are lightly regulated and not required to publicly disclose trading activity traded a record 38% of all shares, cutting into the revenue exchanges make by executing buy and sell orders.

KJ’s Take: About every two years Wall Street goes through a cycle of new regulations. At the end of the day all exchanges are business. All businesses have to at some point take a step back and look at their rules and regulations to make sure they are keeping up with the ever changing demands of their customer base. It will be interesting to see what changes Ms. White will suggest and how the different exchanges will react to them. Grab your popcorn…

In The Markets:

Asia:

Asian markets were quiet as several markets are closed due to holidays. The Nikkei closed down slightly as investors took the opportunity to take profits as the dollar continue its downward slide due to the government shutdown hurting exporting stocks. The Hang Seng soared triple digits on news China’s September PMI (Purchaser Manufacturing Index) rose to 55.4 from 53.9 in August.

Europe:

European markets fell on Wednesday as investors grew increasingly jittery about how long the US government shutdown will last.

US:

US markets closed down however, a late afternoon rally helped stocks come off their session lows. Already jittery investors add a lack luster jobs report to their plate. DJIA: -60.55 15131.15  S&P 500 -1.25 1693.75 NASDAQ -2.96 3815.02

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