Dow Futures Rise Despite Debt Ceiling Stalemate

Stock index futures suggest a strong start for the Dow Jones, despite the ongoing failure of US lawmakers to agree a deal to raise the nation’s borrowing limit.

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 indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI) may open up 0.35% this morning, while the S&P 500 (SNPINDEX: ^GSPC) may open up 0.32%, as investors remain bullish despite politicians’ continued failure to raise the debt ceiling, and the decision by Fitch Ratings to put the USA’s AAA credit rating on negative watch for a potential downgrade. However, CNN’s Fear & Greed Index remains in the fear zone, and is expected to open at 34 this morning, after closing at 39 yesterday.

European stock markets were mostly lower this morning, as investors turned cautious, following US lawmakers’ continued failure to reach a deal that will enable the US government to continue borrowing money to meet its obligations from Friday onwards. However, there were no sharp falls, suggesting that investors believe that a solution will be found before the deadline. In Europe, luxury goods giant LVMH, which owns the Louis Vuitton and Moet Hennessey brands, dropped 5.7% after markets opened after the firm said that sales of fashion and leather goods rose by 4% on an organic basis in the first nine months of this year, missing analysts’ forecasts for a 6% gain. Elsewhere, European monthly car sales reached the highest level since 2011, and UK unemployment fell by the most since 1997. At 7am ET, the FTSE 100 was down 0.59%, the DAX was down 0.20%, and the CAC 40 was down 0.91%.

Today’s US consumer price index inflation reports will be delayed by the government shutdown, but October’s home builders’ index is expected to remain unchanged at 58 at 10am ET, while the Fed’s Beige Book is expected at 2pm.

Passive income stocks: our picks

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

On the corporate front, PNC Financial Services Group, Keycorp, Comerica, US Bancorp, PepsiCo, Bank of America, Abbott Laboratories and BlackRock are all due to report quarterly results before this morning’s opening bell, while eBay, IBM and American Express are expected to report after the closing bell. Yahoo! was up 1.5% in pre-market trading and may be in demand after beating analysts’ earnings forecasts last night, while chipmaker Intel was down 0.7% at 7am ET and may be weaker in trading today, after investors were unimpressed by its third-quarter earnings of $0.58 per share, despite consensus forecasts for just $0.53 per share.

Is this a top choice for growing wealth now?

Before deciding, we think this pick is another must-see.

Discover ‘One Top Growth Stock from The Motley Fool’ absolutely FREE.

Though past performance does not guarantee future results, over the past 5 years, it’s seen consistent double-digit revenue growth. ‘Return on capital’ - a key measure of business quality - is a colossal 57%. That’s almost 6 times higher than the UK average!

Best of all, it has a cult-like following. Customers who’re raving fans, potentially spending more money, more often - whatever the economy.

In our experience, discoveries like this are extremely rare.

So please, don’t leave without seeing, ‘One Top Growth Stock from The Motley Fool’, which includes both the Risks and opportunities.

Claim your FREE copy now

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 does not own shares in any of the companies mentioned in this article. The Motley Fool owns shares in eBay.

More on Investing Articles

Investing Articles

2 FTSE 100 and FTSE 250 stocks to consider as stock markets plummet!

Looking for lifeboats as growth-crushing trade tariffs loom? Here are two (including a FTSE 100 gold stock) I think merit…

Read more »

Number three written on white chat bubble on blue background
Investing Articles

Just released: the 3 best growth-focused stocks to consider buying in April [PREMIUM PICKS]

Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due…

Read more »

Happy young plus size woman sitting at kitchen table and watching tv series on tablet computer
Investing Articles

£10,000 invested in Watches of Switzerland shares 1 year ago is now worth…

Watches of Switzerland shares have been decimated by Trump’s tariffs on Switzerland. Dr James Fox explores whether this is an…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Investing Articles

Growth stocks are crashing! Here’s what I’m doing now

Our writer shares his thoughts as growth stocks get crushed, as well as a favourite from the Nasdaq that he…

Read more »

Investing Articles

What’s going on with the Nvidia share price now?

The Nvidia share price is tanking. Once the most valuable listed company, Nvidia has seen more than $1trn wiped off…

Read more »

Investing Articles

This FTSE AIM stock has £2.3bn in net cash, and a market cap of £2.4bn!

I love this FTSE AIM stock, but it really hasn’t delivered for me yet. The stock trades with crazily low…

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

Down 15% in a week! Are these 5 FTSE 100 fallers screaming buys as markets plunge?

Five of Harvey Jones's favourite FTSE 100 stocks all have the same thing in common – they've fallen around 15%…

Read more »

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

2 stocks that have been crushed and now offer a ton of value

Edward Sheldon has been scanning the market for stocks that offer value after the sell-off. Here are two shares he…

Read more »