This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stock Futures Point to Slightly Higher Wall Street Open

NEW YORK ( TheStreet) -- Stock futures were a touch higher Tuesday amid further signs of gridlock in talks over the "fiscal cliff" in the U.S. and as investors awaited more clarity on the issue of a single banking supervisor for the European Union.

Futures for the Dow Jones Industrial Average were rising 14 points, or 15.40 points above fair value, at 12,964. Futures for the S&P 500 were up 1.60 points, or 1.14 points above fair value, at 1408. Futures for the Nasdaq were up 2.75 points, or 3.31 points above fair value, at 2672.

In one of the latest developments in the U.S. budget negotiations, the White House rejected a counteroffer by Republicans Monday on tax and spending cut proposals, explaining that it would not fulfill President Barack Obama's promise to increase tax rates on the richest Americans.

"In recent years, negotiations over fiscal policy have followed a familiar pattern," said Jeremy Lawson, senior economist at BNP Paribas. "Phase 1 (the honeymoon) involves Democrats and Republicans making soothing noises about the importance of working together and expressing guarded optimism about getting a deal done. This quickly gives way to Phase 2 (the confrontation), during which both parties' rhetoric hardens as they play to their bases and seek to gain the upper hand in the court of public opinion. Phase 3 (the bargain) only begins at the 11th hour when the two sides take negotiations more seriously as they try to avoid an outcome that neither party really wants."

"The latest news on the fiscal cliff negotiations suggests that we have moved into the confrontation phases," said Lawson.

The major U.S. stock averages fell Monday after a slump in manufacturing outweighed upbeat eurozone developments and manufacturing data from China.

No major U.S. economic releases were scheduled for Tuesday.

The FTSE 100 in London was up 0.04% on Tuesday, while the DAX in Germany was rising by 0.32% as investors awaited developments from the European Union finance ministers meeting in Brussels on the topic of a European Union single banking supervisor. Reportedly, so far there has been much friction between member states over the details of the plan.

Asian markets finished mixed as investors digested the weak U.S. manufacturing report from Monday and the stalemate in the budget negotiations. Japan's Nikkei average closed down 0.27% and Hong Kong's Hang Seng index finished up by 0.15%.

Gold for February delivery was plunging $16.90 at $1,704.20 an ounce at the Comex division of the New York Mercantile Exchange, while January crude oil contracts were down 75 cents at $88.34 a barrel.

The benchmark 10-year Treasury was down 2/32, pushing the yield up to 1.632%. The dollar was off 0.25%, according to the U.S. dollar index .

In corporate news, Oracle (ORCL) accelerated its upcoming dividend payments for three quarters.

Shares were down 0.5%.

Geron (GERN) said it would end development of GRN1005, an experimental brain cancer drug, and plans to undergo a restructuring that includes cutting its work force by 40%. It also said it plans to replace its chief financial officer.

Shares were declining more than 18%.

Cerberus Capital Management is in talks to join Virtu Financial's bid for brokerage Knight Capital Group (KCG), The Wall Street Journal reported, citing people familiar with the discussions.

Knight Capital shares were rising more than 2%.

Qualcomm (QCOM) plans to invest about $120 million in Sharp, the struggling Japanese TV maker.

Shares were up 0.36%.

Big Lots (BIG - Get Report) posted a third-quarter loss of 10 cents a share on sales of $1.13 billion. Analysts forecast a loss of 24 cents a share on revenue of $1.14 billion. The retailer raised its outlook for the year.

Shares were jumping more than 10%.

AutoZone (AZO) reported Tuesday first-quarter earnings of $5.41 a share on revenue of $2 billion; analysts were expecting earnings of $5.39 a share on revenue of $2.02 billion. Margins improved at AutoZone during the quarter, but domestic same-store sales increased by a mere 0.2%. .

AutoZone also announced that it has entered into an agreement to purchase the assets and select liabilities of AutoAnything, an online retailer of specialized automotive products.

Shares were sliding over 2%.

Pep Boys (PBY) said on Monday it swung to a third-quarter loss as revenue in the quarter fell 2.4% to $509.6 million. Same-store sales during the quarter decreased 2.7%.

Shares were slumping over 6%.

Struggling Finnish mobile-phone maker Nokia (NOK) plans to put its head office up for sale for €170 million as it aims to reduce costs and strengthen profitability.

ADRs were up more than 1.5%.

Toll Brothers (TOLL) shares were jumping by over 4% after the homebuilder booked stronger-than-anticipated fourth-quarter sales as the company saw cancellation rates decline and net signed contracts rise.

-- Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BIG $46.05 -1.90%
AZO $763.51 -0.52%
AAPL $93.47 -1.40%
FB $117.07 0.29%
GOOG $694.46 0.50%


Chart of I:DJI
DOW 17,777.48 -53.28 -0.30%
S&P 500 2,064.97 -10.84 -0.52%
NASDAQ 4,775.5350 -29.7560 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs