Stock Futures Cautious as Investors Await Budget Deal, Citigroup Slips
NEW YORK (TheStreet) -- Stock futures were little changed Tuesday as investors digested a disappointing earnings report from Citigroup (C - Get Report)against comments on CNBC by influential hedge fund manager David Tepper that markets should go higher amid signs Senate leaders were closer to reaching a deal to extend negotiations on the debt ceiling and funding the U.S. government.
Investors have been cheering the possibility that congressional leaders were moving closer to achieving a temporary fix after President Barack Obama postponed a meeting with lawmakers amid signs of constructive talks between Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell.
The draft proposal would allow for a temporary funding bill that could reopen the government through January 15, suspend the debt-ceiling deadline until February 7 and create a blueprint for formal budget talks to end by December 15 with long-term recommendations regarding funding levels and reducing the U.S. deficit.
Futures for the S&P 500 were off 1.5 points, or 1.49 points below fair value, to 1,702.75. Futures for the Dow Jones Industrial Average were down 3 points, or 6.26 points below fair value, to 15,222. Futures for the Nasdaq were up 3.5 points, or 3.73 points above fair value, to 3,251.75.
Citigroup (C - Get Report) shares were slipping 0.87% to $49.23 after reporting worse-than-expected third-quarter profit as declining revenue was only partially offset by improvements in credit quality and expense reduction.Tesla Motors (TSLA - Get Report) was advancing 3.41% to $185.85 following an upgrade based on higher-than-expected appeal for the upcoming third-generation model. The October Empire State manufacturing index report on Tuesday came in lower than expected showing an edge down to 1.5 so far this month from 6.29 in September. An edge up to 7 was expected by economists, on average. The benchmark 10-year Treasury was falling 10/32, lifting the yield to 2.728%. The dollar was rising 0.39% to $80.58 according to the U.S. dollar index. November crude oil futures were off 63 cents to $101.78 a barrel and December gold futures were sinking by $19.70 to $1,256.90 an ounce.
-- Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.>
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