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 Rise Modestly on Hopes of Debt-Ceiling Resolution

NEW YORK (TheStreet) -- Stock futures were rising modestly Tuesday on hopes the impasse over debt-ceiling talks in government will be resolved as Senate Majority Leader Harry Reid prepares to unveil a standalone bill to increase the government's borrowing caps.

Reid's bill would allow the U.S. at least $1 trillion in additional borrowing room beyond the $16.7 trillion debt limit expected to be breached on October 17, providing the government with enough borrowing ability to pay its bills through next year's general elections in November.

Yet as the third quarter earnings season begins, investors remain cautious about how the economic uncertainties spurred by the drawn-out fiscal debates in Washington might have impacted corporate earnings outlook.

"If it gets off the ground, it ends the threat of a debt default for the immediate future," said Peter Cardillo, chief market economist at Rockwell Global Capital in Manhattan, in an emailed comment about Senate's expected move. "We think earnings sentiment remains neutral as the political impasse overshadows for now. However, that's not to say individual companies will not be punished," he added.

Futures for the S&P 500 were up 2 points, or 0.43 points above fair value, to 1,669.75. Futures for the Dow Jones Industrial Average were higher by 15 points, or 8.76 points above fair value, to 14,866. Futures for the Nasdaq were up 5.5 points, or 2.96 points above fair value, to 3,210.5.

Must Read: Stocks Fall as Shutdown, Debt Ceiling Rattle Investors

Alcoa (AA) will be reporting after the market close, while JPMorgan Chase (JPM) and Wells Fargo (WFC) will be releasing their quarterly results on Friday.

Nuance Communications (NUAN - Get Report) was popping 2.27% to $18.91 after billionaire activist investor Carl Icahn tweeted that the speech-recognition technology maker's board will bringing on his two of his choices consisting of his son Brett Icahn as well as David Schechter, both of whom are co-managers of Sargon Portfolio which is a component of the private investment funds operating under Icahn Enterprises L.P.

Procter & Gamble (PG - Get Report) was gaining 0.61% to $76.11 after the consumer staples giant was raised to "outperform" from "market perform" by Wells Fargo analysts based on the company's increased productivity and market share, and its decision to bring A.G. Lafley back to the helm.

The FTSE 100 in London was down 0.79% and the DAX in Germany was off by 0.26%. The Hong Kong Hang Seng closed higher by 0.89% while the Nikkei 225 in Japan settled up 0.3%.

The benchmark 10-year Treasury was falling 5/32, raising the yield to 2.65%. The dollar was rising 0.11% to $80.03 according to the U.S. dollar index.

November crude oil futures were rising 81 cents to $103.84 a barrel. December gold futures were down $1.60 to $1,323.50 an ounce.

-- 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
NUAN $16.70 0.72%
PG $81.30 -0.37%
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs