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Stock futures fall as Washington debt deadlines approach
September 26, 2013 / 12:13 AM / 4 years ago

Stock futures fall as Washington debt deadlines approach

3 Min Read

NEW YORK (Reuters) - U.S. stock index futures fell on Friday as deadlines for a political agreement in Washington that would keep the U.S. government running and avoid a debt default loom, with no clear solution in sight.

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 September 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 the responsibility for any economic damage on the other.

Investors are concerned about the implications of a shutdown and possible default on the struggling economic recovery.

A trader works on the floor of the New York Stock Exchange shortly after the start of trading in New York, September 23, 2013.Lucas Jackson

Federal Reserve officials, closely watched by markets due to the confusion over the immediate future of Fed's current stimulus program, are due to speak on Friday. Boston Fed President Eric Rosengren will speak in New York at 8:30 a.m. (1230 GMT) and New York Fed President William Dudley speaks on the economy before the Syracuse University Whitman School of Management, Syracuse, New York at 2 p.m. (1800 GMT).

Data on tap for Friday include the Commerce Department's personal income and consumption data for August at 8:30 a.m. (1230 GMT) and the Thomson Reuters/University of Michigan Surveys of Consumers September consumer sentiment index at 9:55 a.m. (1355 GMT).

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 50 points, and Nasdaq 100 futures lost 11 points.

Nike Inc (NKE.N) shares jumped 5.2 percent in premarket trading after the maker of sports clothes and shoes report a stronger-than-expected quarterly profit.

J.C.Penney (JCP.N) announced the pricing of its public offering of 84 million common shares priced at $9.65 per share. The stock fell 6.7 percent in premarket trading.

Reporting by Rodrigo Campos; Editing by Theodore d'Afflisio

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