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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV