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 Slip as Debt-Deal Excitement Fades

NEW YORK (TheStreet) -- Stock futures were retreating Thursday after the build-up in expectations of a last-minute congressional fiscal deal gave way to the deflating reality that this was only temporary solution and that the brinkmanship in Washington may be headed for a repeat in a few months.

Investors also were weighing the impact that the the fiscal deadlock had on U.S. economy while turning their attention to the third-quarter earnings season, which was showing mixed results Thursday.

Futures for the S&P 500 were slipping 2.75 points, or 5.24 points below fair value, to 1,710.5. Futures for the Dow Jones Industrial Average were slumping 62 points, or 116.83 points below fair value, to 15,187. Futures for the Nasdaq were dipping 1.5 points, or 11.07 points below fair value, to 3,262.5.

The House of Representatives Wednesday night passed a bill to fund the government and raise the nation's borrowing limit by a vote of 285 to 144. Republicans and Democrats upheld a bill negotiated by Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell after a nearly-three week shutdown of a vast array of government offices and services. The deal, like a litany of others, was secured shortly before the United States would have been largely unable to pay its debts.

Verizon (VZ - Get Report) was increasing by 2.43% to $48.40 reporting strong third-quarter earnings Thursday of 77 cents a share on revenue of $30.3 billion. The big takeaway, as usual, was the number of Apple AAPL iPhones activated during the quarter, and it was a lot.

Must Read: Stocks Jump as Congress Gets Some Sense

UnitedHealth (UNH - Get Report) shares were skidding by 3.05% to $72.90 after the healthcare provider posted in line third quarter earnings of $1.53 a share and lifted the lower end of its full-year guidance, though it remained short of Wall Street estimates.

Goldman Sachs (GS - Get Report) was down 3.19% to $157.08 as the nation's largest standalone investment bank beat third-quarter earnings expectations while seeing its revenue fall sharply from a drop off in the firm's trading and investment banking activity.

IBM IBM shares were sinking nearly 6% to $175.67 in premarket trading after the technology giant reported better-than-expected third-quarter earnings but missed on the top line following a negative currency hit and as key growth markets trailed the majors for the first time. "Clearly we need to improve performance predominantly in the key growth markets," IBM Chief Financial Officer Mark Loughridge said during IBM's earnings call. "But we are confident this can get back on track by 2014," with mid-single digit growth in the growth markets by mid-2014.

The Labor Department reported Thursday that initial jobless claims fell by 15,000 to 358,000 in the week of October 12, which was above the 335,000 figure economists were expecting. The four-week moving average, indicative of longer-term trends, rose 11,750 to 336,500. Gennadiy Goldberg, a New York-based strategist at TD Securities wrote in a note that while Federal workers are not reflected in the higher initial claims total, part of the ongoing increase in claims likely remains attributable to some non-government workers being impacted by the government shutdown. It was also noteworthy that the numbers may have been skewed somewhat by computer system upgrades affecting claims processing.

Other economic data releases scheduled for Thursday include the Philadelphia Fed's Business Outlook Survey at 10 a.m. The report is expected to show a decline to 15 in October from 22.3 in September.

Federal Reserve speakers that were expected to make appearances Thursday included Dallas Fed Bank President Richard Fisher beginning at 8 a.m and Chicago Federal Reserve Bank President Charles Evans at starting at 12:45 p.m.

The FTSE in London was off 0.3% while the DAX in Germany was down 0.69%. The Nikkei 225 in Japan finished up 0.83% and the Hong Kong Hang Seng dipped 0.57%.

November crude oil contracts were off 43 cents to $101.86 a barrel. December gold futures were adding on $23.90 to $1,306.20 an ounce.

The benchmark 10-year Treasury was gaining 10/32, diluting the yield to 2.628%. The dollar was off 0.69% to $79.92 according to the U.S. dollar index.

-- 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
GS $163.27 -0.62%
IBM $145.69 -0.94%
UNH $130.63 -1.10%
VZ $50.78 -0.47%
AAPL $93.28 -1.60%


Chart of I:DJI
DOW 17,711.19 -119.57 -0.67%
S&P 500 2,055.29 -20.52 -0.99%
NASDAQ 4,754.2870 -51.0040 -1.06%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs