Reuters
Published Jul 18, 2011 07:59AM ET
* Five days left before Obama deadline for deal deal
* Halliburton's quarterly profit soars, stock higher
* News Corp falls after former top exec arrested
* Futures lower: Dow 77 pts, S&P 8.6 pts, Nasdaq 21.25 pts
* For up-to-the-minute market news see [STXNEWS/US] (Updates prices, adds analyst comment)
By Ryan Vlastelica
NEW YORK, July 18 (Reuters) - U.S. stock index futures slumped on Monday with no deal in sight on raising the U.S. debt ceiling and investors still fretting over ongoing fiscal problems in Europe.
An expected strong earnings season could lift equities this
week, though encouraging results last week from Google Inc
Halliburton Co
With five days remaining before U.S. President Barack Obama's deadline for a deal to raise the government's debt ceiling, Republicans and Democrats were still divided on a plan to cut the nation's deficit and raise the debt limit in time to avoid an unprecedented default. That outcome was seen seen as unlikely, though. [ID:nN1E76G06R] and [ID:nUSBUDGET]
"There's a perfect storm happening on a global macroeconomic basis with no debt deal here and the ongoing issues in Europe, and the market is looking at all these things and is fairly anxious," said Oliver Pursche, president of Gary Goldberg Financial Services in Suffern, New York.
S&P 500 futures SPc1 fell 8.6 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 sank 77 points, and Nasdaq 100 futures NDc1 lost 21.25 points.
European equities added to last week's losses early Monday, led lower by banks. Results from the region's regulatory stress tests late Friday failed to dispel concerns over the potential impact from the region's sovereign debt crisis.
The FTSEurofirst 300 .FTEU3 index of top shares fell 1.2
percent, while the Stoxx Europe 600 banking index <.SX7P> lost
2.2 percent. U.S.-listed shares of Barclays Plc
News Corp
Toymaker Hasbro Inc
International Business Machines Corp
"For people like myself, who are fairly optimistic about the economic outlook, we're looking for earnings to validate our optimism," Pursche said. "However, because of the macro issues, we may not see a big lift on them. They may just set us up for gains in the second half of the year."
The Nasdaq closed up 1 percent on Friday, helped by Google's blowout quarter, while the Dow and S&P posted modest gains. The advances were a bright spot in a stretch dominated by selling, driven by concerns over the U.S. and European fiscal issues. (Reporting by Ryan Vlastelica; editing by Jeffrey Benkoe)
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.