Dow Futures Gain As Investors Wait For Shutdown Solution

Stock index futures rose, indicating the Dow Jones and S&P 500 may open higher after House Speaker Boehner said he would not allow a US default.

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 by 0.19% this morning, while the S&P 500 (SNPINDEX: ^GSPC) may open 0.26% higher. Market sentiment may be helped by House Speaker John Boehner’s comments that he would not allow a default, and would force through an increase to the debt ceiling if needed before the October 17 deadline. However, CNN’s Fear & Greed Index remains in the fear zone, and is expected to open at 28 this morning, after closing at 35 yesterday.

European markets moved higher this morning, as investors shrugged off the risk of a US default, although most markets are expected to close below this week’s opening levels. In London, Barclays failed to rise despite a broker upgrade and news that 95% of shares offered in its £6bn rights issue had been accepted, but fellow financial Standard Life topped the leaderboard, and was up by 2.3% at 7am ET, when the FTSE 100 was up 0.14%, the DAX was up 0.05%, and the CAC 40 was up 0.54%.

Today’s nonfarm payroll reports have been delayed by the government shutdown, depriving investors around the world of their normal monthly guidance on US employment growth and the unemployment rate — two key elements of economic recovery and of the Fed’s tapering plan. A Bloomberg survey of economists suggests that the government shutdown could reduce GDP growth by 0.1% for each week of closure, as 800,000 federal employees remain temporarily out of work.

In company news, auto retailer Sonic Automotive is scheduled to report its latest quarterly earnings, and Facebook may be active after announcing that it will start displaying advertising on its popular Instagram image-sharing service. Facebook shares were up nearly 1.0% in pre-market trading this morning, while Forest Oil is likely to surge after gaining 12% in after-hours trading last night following news that it is to sell its Texas Panhandle oil and gas assets for $1.0bn. Sandwich chain Potbelly could start trading today, after raising its initial offering price to between $12 and $13 per share. Meanwhile, railroad operator Union Pacific was down 1.5% in after-hours trading and may fall when markets open, after the firm issued third-quarter guidance below analysts’ expectations.

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. 

More on Investing Articles

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »

Investing Articles

Are HSBC shares a FTSE bargain? Here’s what the charts say!

There are plenty of dirt-cheap FTSE 100 banking stocks for investors to choose from today. Our writer Royston Wild believes…

Read more »

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

Just released: Share Advisor’s latest ‘Hold’ recommendation [PREMIUM PICKS]

In our Share Advisor newsletter service, we provide buy, sell, and hold guidance for our universe of recommendations.

Read more »

Investing Articles

Investing £5 a day could help me build a second income of £329 a month!

This Fool explains how £5 a day, or one less takeaway coffee, could help her build a monthly second income…

Read more »