This Day On The Street
Continue to site
ADVERTISEMENT
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 Sink on Fears of Messy Debt Ceiling Debates

NEW YORK ( TheStreet) -- Stock futures were sinking as the U.S. government shutdown entered its second week.

More than 800,000 federal workers are on unpaid leave as lawmakers wrangled over the Patient Protection and Affordable Care Act, popularly known as Obamacare, fueling increasing concern that the debate over the health care law will be inextricably tied to discussions about the U.S. debt ceiling, putting the country at risk of defaulting on its bills.

House Speaker John Boehner warned Sunday on ABC's "This Week" program that a budget deal won't be passed in the House without concessions to the health care law, enacted by Congress in 2010.

Futures for the S&P 500 were declining by 13.75 points, or 12.7 points below fair value, to 1,671. Futures for the Dow Jones Industrial Average were dropping 119 points, or 114.58 points below fair value, to 14,879. Futures for the Nasdaq were giving up 27.75 points, or 27.62 points below fair value, to 3,211.75.

Cooper Tire & Rubber (CTB - Get Report) was plunging more than 12% to $25.88 after the company's $2.5 billion deal to be acquired by India's Apollo Tyres hit a major roadblock whereby Apollo said resolving labor issues at Cooper's U.S. and China plants would be extremely costly. Apollo appears to be pushing for a renegotiation of the deal sparking that plans to create the world's seventh-largest tire maker could fall through.

Boeing (BA - Get Report) shares were losing 1.37% to $115.60 after  Japan Airlines revealed it will buy jets from Boeing's European rival Airbus, from the first time in its history, a big blow to Boeing. The company said its decision to endorse a 950 billion yen ($9.5 billion) deal to buy 31 A350 planes had nothing to do with the long-list of technical incidences suffered by the 787 Dreamliner planes but that the move was based on the "best match" for its current needs.

BlackBerry (BBRY - Get Report) is in talks with Cisco (CSCO), Google (GOOG) and SAP (SAP) about selling them all or parts of itself, several sources close to the matter told Reuters. Such a deal would be an alternative to the preliminary agreement reached weeks ago with a group led by Fairfax Financial Holdings, BlackBerry's biggest shareholder, to take the company private for about $4.7 billion, Reuters noted. That bid has faced some skepticism because of financing questions. BlackBerry shares were popping 3.77% to $7.98.

1 of 2

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BA $147.80 -0.40%
BBRY $10.24 -1.35%
CTB $42.20 -0.42%
AAPL $132.65 1.82%
FB $81.91 0.47%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs