Dow Futures Slide As Shutdown Continues

Stock index futures point to a sharp fall for the Dow Jones and S&P 500 when markets open this morning.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

LONDON — Stock index futures at 7am ET indicated the Dow Jones Industrial Average (DJINDICES: ^DJI) may open down by 0.53% this morning, while the S&P 500 (SNPINDEX: ^GSPC) may open 0.67% lower, after US Treasury Secretary Jack Lew said that the government is using the last of its “extraordinary measures” to remain below the debt ceiling.

CNN’s Fear & Greed Index remains in the fear zone, and is expected to open at 42 this morning, after closing at 30 yesterday.

European markets slipped lower this morning, as uncertainty continued over the US shutdown, and investors waited for the European Central Bank’s monthly interest rate decision, at 7.45am ET, which will be followed by a statement from ECB President Mario Draghi, at 8.30am.

Should you invest £1,000 in Shell right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Shell made the list?

See the 6 stocks

No change is expected to the ECB’s current policy.

One of the biggest fallers was Europe’s largest retailer, British supermarket Tesco, which was down 3.6% after its half-yearly results missed analysts’ forecasts.

At 7am ET, the FTSE 100 was down 0.86%, the DAX was down 0.58%, and the CAC 40 was down 0.77%, while Italy’s FTSE MIB continued last night’s rally, and was up 1.0% on reports that Silvio Berlusconi will reverse his decision to withdraw from the government, following widespread disagreement within his own party.

In the US, yesterday’s construction spending report was delayed due to the government shutdown, but today’s only major economic report is September’s ADP employment report, which should be published on schedule at 8.15am ET, and is expected to show a slight rise in new private-sector hires to 180,000, up from 176,000 in August.

Tomorrow’s factory orders report and Friday’s non-farm payrolls and unemployment reports are all expected to be delayed if the government shutdown continues.

On the corporate front, agricultural giant Monsanto is expected to report a fourth-quarter loss of $0.43 per share, before the opening bell this morning. The firm reported weaker sales and higher costs during the third quarter.

Global Payments was up 6.8% in after-hours trading, and may be active after beating first-quarter earnings expectations last night.

Alcoa may also be actively traded; the aluminium giant was down 3.3% in pre-market trading this morning after lower aluminium prices prompted Deutsche Bank to cut its rating on the firm from hold to sell.

Of course, there are plenty of other passive income opportunities to explore. And these may be even more lucrative:

We think earning passive income has never been easier

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

> Roland owns shares in Tesco but does not own shares in any of the other companies mentioned in this article.  The Motley Fool owns shares in Tesco.

Pound coins for sale — 51 pence?

This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

More on Investing Articles

Investing Articles

Up 30% in weeks, does the BAE Systems share price still offer value?

The BAE Systems share price has been on a tear over the past couple of months. This writer sees limited…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

Hunting for shares to buy as the market trembles? Remember this!

After a choppy week in global stock markets, our writer goes back to basics in his hunt for bargain shares…

Read more »

Investing Articles

3 simple principles to help build wealth in an ISA

As a new tax year opens up new ISA allowances for many investors, our writer shares a trio of things…

Read more »

Investing Articles

US trade tariffs: what they could mean for UK shares like Ashtead, Compass Group, and Experian

US trade tariffs continue to rock global markets, and the UK is no exception. Our writer considers how a new…

Read more »

Mindful young woman breathing out with closed eyes, calming down in stressful situation, working on computer in modern kitchen.
Dividend Shares

The Trump slump has smashed these FTSE 100 shares!

After a rough week for US and UK shares, investors have been shaken. But now these FTSE 100 stocks have…

Read more »

Investing Articles

£10,000 invested in Rolls-Royce shares 5 years ago is now worth…

Rolls-Royce shares have been on fire since April 2020. Part of this is the result of pandemic restrictions lifting, but…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

£10,000 invested in Tesla stock at its peak in 2024 is now worth…

Over the last few months, Tesla stock has lost nearly half its value. Here, Edward Sheldon explores a few takeaways…

Read more »

Investing Articles

Is the S&P 500 heading for an epic stock market crash?

Our writer shares his thoughts on a very crazy time for the S&P 500 and the wider stock market. How…

Read more »