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 Slump Amid Budget Impasse

NEW YORK ( TheStreet) -- Stock futures were pointing to a weaker open on Wall Street Monday as investors remained concerned the government was poised for a shutdown by midnight as the budget negotiations in Washington appear to have hit at an impasse.

The Republican-controlled House of Representatives voted over the weekend for federal funding measures tied to a one-year delay to the Patient Protection and Affordable Care Act and the repealing of a medical device tax. The Democrat-led Senate is expected to convene at about 2 p.m. Monday, during which the House proposals are anticipated to be rejected.

Futures for the S&P 500 were trading lower by 15.5 points, or 13.75 points below fair value, to 1,671. Futures for the Dow Jones Industrial Average were sinking by 142 points, or 125.24 points below fair value, to 15,053. Futures for the Nasdaq were declining by 29.75 points, or 28.40 points below fair value, to 3,193.25.

"The animosity between the two parties runs deep and there is no obvious middle ground to which both could easily move," Brian Hillard, a London-based economist at Société Générale, wrote in note. "A government shutdown could interrupt the flow of economic data. At such a critical time when the Fed has made clear that any decision on tapering will be data dependent, that means no data, no decision."

A weaker-than-expected increase in a Chinese manufacturing gauge from HSBC and Markit Economics also worried investors heading into what's expected to be a week of light global trading volumes as China begins its Golden Week holiday.

Achillion Pharmaceuticals ( ACHN) was plummeting 53% to $3.45 after the company said the U. S. Food and Drug Administration won't remove the clinical hold on its drug sovaprevir.

eBay ( EBAY) was shedding 0.93% to $55.26 after failing to get a removal of the U.S. antitrust lawsuit triggered by its hiring agreements with Intuit ( INTU ).

Colgate-Palmolive (CL - Get Report) was also garnering investor attention after Morgan Stanley boosted its view on the consumer staples stock to "overweight" from "equal weight," predicting sales growth that will exceed its competitors.'

Panera Bread (PNRA - Get Report) was slipping 2.04% to $160.69 after the franchise-operated bakery-café stock was cut to "equal weight" from "overweight" by Morgan Stanley analysts who were concerned about its same-store sales growth momentum.

The U.S. economic calendar on Monday includes the September Chicago Purchasing Managers Index expected at 9:45 a.m. EDT. An increase to 54 from 53 the prior month is expected.

-- 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
ACHN $8.55 -2.80%
CL $70.94 -0.31%
EBAY $24.42 -0.79%
PNRA $214.60 0.95%
AAPL $93.75 -1.10%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs