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Lasting effects of the government shutdown

Althea Chang

The government may be back up and running, at least for now, but the 16-day shutdown will have some lasting impacts on the markets as well as on consumer confidence, according to one analyst.

"We're seeing a dropoff in industrials, a dropoff in telecom and really seven of the 10 S&P 500 sectors have seen really a pullback in earnings growth," said Rich Peterson, market strategist at S&P Capital IQ.

Earnings estimates for industrials, the sector worst hit by the shutdown, fell 8.6 percent since Sept. 30, according to S&P Capital IQ's data. Telecoms were the second-worst hit, with earnings estimates for those companies falling 2.7 percent.

And since the agreement to reopen the government lasts only until Jan. 15, consumer confidence will likely lag during the holiday season, Peterson added.

--By Althea Chang

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