By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- U.S. stock futures pointed to gains at the open for Wall Street on Tuesday as investors, at least for the moment, chose to shrug off a partial government shutdown that kicked in as a deadline passed without a deal.
Data on tap includes a fresh look at the U.S. manufacturing industry and sales figures from car makers.
In a marked difference to sharp losses seen in Monday's premarket session, futures for the Dow industrials (DJZ3) rose 54 points, or 0.4%, to 15,100. Futures for the Standard & Poor's 500 index (SPZ3) gained 7.6 points, or 0.5%, to 1,681.90. Futures for the Nasdaq 100 index (NDZ3) rose 13.75 points, or 0.4%, to 3,222.75.
U.S. politicians failed at the 11th hour to agree on funding for the fiscal year that began just after midnight, owing to moves by lawmakers over the budget and President Barack Obama's health-care law. A shutdown -- the first in 17 years -- has begun, furloughing thousands of government workers in the process.
Given the increased uncertainty created by the budget impasse, and with the government needing to raise the debt ceiling by Oct. 17,, there are higher risks of a further correction in stock markets, said Allen von Mehren, chief analyst at Dankse Bank in a note.
"The reaction so far has been fairly muted. But given that markets have been technically overbought, we think it's likely we will see further declines in coming weeks," said von Mehren. "This should also add to downside pressure on bond yields. In the short term, the risk is also that the U.S. dollar could weaken further."
The shutdown means the week's biggest piece of economic data, September's monthly jobs report, won't be released on Friday. However, markets are bracing for the possibility that the data could be released as early as Tuesday. Economists polled by MarketWatch expect payrolls to rise to 185,000 in September from 169,000 in August.
On the regular schedule, the Institute for Supply Management's business survey is projected to drop to 55% in September from a more than two-year high of 55.7% in August. A number above 50% signals growth. The report will be released at 10 a.m. Eastern Time.
Ahead of that, the Markit PMI, will come out shortly before 9 a.m. Eastern. The preliminary Markit PMI totaled 52.8 in for September.
A report on construction spending for August will be postponed due to the shutdown.
On the corporate front General Motors Co. (GM.XX) and Ford Motor Co. (F) could be active as major car makers are scheduled to release monthly auto sales data. Analysts are predicting car sales could fall in September versus the year-ago period. Read GM, Ford are Tuesday's stocks to watch
Across other markets, the dollar was under pressure, while oil prices also fell and gold moved higher.
Asia stocks showed little reaction to the looming shutdown, with Japanese shares eking out a small gain after Prime Minister Shinzo Abe said he would raise the country's sales tax next year. Europe stocks logged gains, with data showing the euro-zone manufacturing sector expanded for a third month in September. The final reading came in unchanged from a preliminary reading.
Wall Street stocks dropped on Monday, with the Dow industrials (DJI) logging a triple-digit decline as the deadline for a budget deal neared.
-Barbara Kollmeyer; 415-439-6400; AskNewswires@dowjones.com
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(END) Dow Jones Newswires
10-01-13 0621ETCopyright (c) 2013 Dow Jones & Company, Inc.
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