MARY REICHARD, HOST: Coming next on The World and Everything in It, the Monday Moneybeat.
NICK EICHER, HOST: Well, government is open for business today, and the numbers are in on the estimated economic costs of the historic partial shutdown:
The firm S&P Global Ratings estimated the dispute cost the economy $171 million per day. Multiply that by 35 days and that’s a $6 billion hit to GDP, the gross domestic product. Turns out that’s more than the wall money Congress and the president had locked horns about.
But in relative terms, the GDP impact is negligible: just 3/100s of a percent of a $19-trillion-plus U.S. economy.
One other way to think about the economic cost: If U.S. annual GDP is a gallon of milk, the shutdown impact does not quite fill a quarter-teaspoon.
The financial markets were calm last week. The Dow Jones Industrials, the Nasdaq, and the Russell 2000 stock indexes posted very small gains, and the Standard & Poor’s 500 registered a very small loss.
Big company fourth-quarter earnings reports are due this week: Apple reports tomorrow, Microsoft Wednesday, and Amazon Thursday. These are three of our four biggest publicly traded companies.
Earnings week coincides with three other events the markets are paying attention to: One, another meeting of the Federal Reserve — what happens with interest rates? Two, scheduled trade talks between U.S. and Chinese officials, who are searching for ways to end a trade war between the two biggest economies on the planet. And three, the January jobs report from the Labor Department. That’s where we’re most likely to notice the impact of the government shutdown. American employers have posted 99 straight months of job growth. The 100th may be in jeopardy.
And that is today’s Monday Moneybeat.