* J.C.Penney stock slides after pricing of offering
* Nike shares jump a day after strong earnings
* Futures off: Dow 44 pts, S&P 7 pts, Nasdaq 11 pts
By Rodrigo Campos
NEW YORK, Sept 27 U.S. stocks were set to fall
at the open, with the S&P 500 and Dow poised to drop for the
first week in four, as concerns grew over a lack of compromise
in debt and budget negotiations by congressional lawmakers in
The lawmakers have yet to forge an agreement that would keep
the U.S. government running and avoid a debt default. Investors
are concerned about the implications of a shutdown and possible
default on an already-fragile economic recovery.
"Concerns about a government shutdown are starting to create
some tension and hesitation approaching the weekend," said Andre
Bakhos, managing director at Janlyn Capital LLC in
Bernardsville, New Jersey.
"Until there's greater visibility, the market is going to be
choppy and erratic."
U.S. House of Representatives Republicans refused on
Thursday to give in to President Barack Obama's demand for
straightforward bills to run the government beyond Sept. 30 and
to increase borrowing authority to avoid a historic default.
The Republican-controlled House and the Democratic Senate
are bouncing back bills, with each party anxious to pin
responsibility for any economic damage on the other.
Meanwhile, the president of the Federal Reserve Bank of
Chicago, Charles Evans, said the Fed could start reducing its
asset purchases this year based on economic forecasts but the
decision to wind back stimulus could be pushed into next year.
Several Federal Reserve officials are due to speak Friday,
and markets will peruse their remarks with interest for clarity
on the immediate future of the Fed's stimulus program.
Influential New York Fed President William Dudley will speak
on the economy in Syracuse, New York at 2:00 p.m. (1800 GMT).
Data showed U.S. household spending rose in August as
incomes increased at their fastest pace in six months, signs
that momentum could be growing in the U.S. economy despite
months of harsh government austerity.
S&P 500 futures fell 7 points, dropping 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 fell 44
points, and Nasdaq 100 futures lost 11 points.
J.C.Penney announced the pricing of its public
offering of 84 million common shares priced at $9.65 per share.
The stock fell 8 percent in premarket trading.
Nike Inc shares jumped 7.3 percent in premarket
trading a day after the maker of sports clothes and shoes
reported a stronger-than-expected quarterly profit.