Stock Futures Dip Amid Debt Concerns
NEW YORK (TheStreet) -- Stock futures were pointing to a lower open Monday as European contagion fears and concerns that the U.S. won't be able to raise its debt ceiling before its credit rating is lowered weighed on global investors.
Futures for the Dow Jones Industrial Average were down by 84 points, or 51 points below fair value, at 12,368. Futures for the S&P 500 were lower by 10 points, or 7 points below fair value, at 1305, and Nasdaq futures were off by 20 points, or 17 points below fair value.
A weak reading on consumer sentiment and unresolved debt issues in the U.S. put a lid on stock gains even as strong earnings from Google (GOOG) kept the Nasdaq firmly in positive territory.
Results from the European bank stress tests on Friday failed to inspire much confidence in the eurozone, while policymakers in Washington are still clashing over a deficit-reduction deal.The FTSE in London was declining 1.1%, and the DAX in Frankfurt was losing 1.2%. Hong Kong's Hang Seng shed 0.3%, and markets in Japan were closed for a national holiday. Bids for bankrupt bookseller Borders were due by 5 p.m. EDT on Sunday, but the company didn't receive any offers, according to a Wall Street Journal article that also said Borders was in discussions with Books-A-Million (BAMM) late Sunday. Shares of Hasbro (HAS) were up 1.8% to $42.10 ahead of Monday's opening bell after the company said earnings jumped 33% in the second quarter, led by gains across its Transformers and BeyBlade brands. The market will get the latest housing market data at 10 a.m. EDT with the National Association of Home Builders' housing market index for July. Investors will be looking to see whether the index improved from a reading of 13 in June.
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