By Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stock futures edged higher on Tuesday after the previous session's selloff, with investors monitoring developments in Washington for signs of any progress in resolving the budget stalemate that has shut down the government for more than a week.
Futures for the Dow Jones Industrial Average (DJZ3) rose 20 points to 14,871, while those for the Standard & Poor's 500 index (SPZ3) rose 3.20 points to 1,670.90. Futures for the Nasdaq 100 index (NDZ3) rose 7.50 points to 3,212.50.
"Everyone is focusing on the politicians, and last night we saw a slight improvement in negotiations among Republicans and Democrats. It's nothing close to a final solution, but still a slight improvement," said Henrik Drusebjerg, strategist at Nordea.
Bloomberg News reported that Senate Democrats are planning a test vote on a measure that would allow President Barack Obama the power to raise the debt ceiling for a year. If all Senate Democrats and six Republicans vote to give Obama that authority, a debt-limit increase free of policy conditions could be sent to the House of Representatives just ahead of the debt-ceiling deadline of Oct. 17, pressuring House Speaker John Boehner. The report said four Republicans said they wouldn't rule out this option.
Closed-door meetings will also take place on Capitol Hill on Tuesday, with House Republicans and Democrats meeting separately, said media reports.
The Wall Street Journal reported Monday that the U.S. administration has begun warning consumers that it can't guarantee benefits will be paid in full if the debt limit is breached.
The S&P 500 (SPX) closed at a four-week low on Monday at 1,676.12, a drop of 14.38 points. The S&P 500 and other major benchmarks closed the day around 1% lower.
The International Monetary Fund on Tuesday warned that downside risks are building and urgent policy actions are needed to keep the global economy from getting mired in sub-par growth.
IMF economist Olivier Blanchard urged U.S. lawmakers to raise the debt ceiling, noting that a failure to do so would be "a major event."
While investors remain distracted by the shutdown and debt-ceiling worries, earnings season kicks off Tuesday with Alcoa Inc. (AA) and Yum Brands Inc. (YUM) both due to report earnings after the closing bell. Big banks such as J.P. Morgan Chase & Co. (JPM) report on Friday.
Shares of Talisman Energy Inc. (TLM) rose 8% in premarket after activist investor Carl Icahn disclosed a big stake in the oil and natural-gas producer Monday.
Shares of Tower Group International (TWGP) plunged 26% in premarket, matching losses in Monday's late trading session on Monday after Fitch Ratings cut the company's issuer default rating to B from BBB.
Shares of J.C. Penney Co. (JCP) rose 8% in premarket after the company said it's made "solid progress" on its turnaround, saying it saw an improving trend in September same-store sales.
Europe stocks slipped after data showed slowing growth in China's service sector.
Oil was pushing higher, while gold prices slipped.
-Barbara Kollmeyer; 415-439-6400; AskNewswires@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
10-08-13 1118ETCopyright (c) 2013 Dow Jones & Company, Inc.
|UPDATE: Stock futures edge up ahead of Fed; Oracle, FedEx off (2014/3/19)|
|UPDATE: Stock futures shrug off shutdown; Cars in focus (2013/10/1)|
|UPDATE: Stock futures edge up; earnings in focus ()|
|UPDATE: Stock futures edge up ahead of jobs data ()|
|UPDATE: Stock futures edge up on durable-goods data (2013/12/24)|
|UPDATE: Stock futures edge up ahead of retail sales ()|
|UPDATE: Stock futures edge up before house prices, confidence (2013/12/31)|
|UPDATE: Stock futures edge up, RF Micro, Jos. A. Bank gain (2014/2/24)|
|UPDATE: Stock futures edge up ahead of payrolls data ()|
|UPDATE: Stock futures edge up; retailers gain on results (2013/8/20)|
|Start Premium Trial||Register For Free|
|P||F||Fund Financial Data (13,000+ funds)|
|P||F||Stock Financial Data (7,000+ stocks)|
|P||F||Stock and Fund Screeners (basic)|
|P||F||Investing Articles and Market Commentary|
|P||F||Articles Archive (>30 days)|
|P||F||Discuss (dozens of stock, fund, bond, and general bulletin boards)|
|P||F||Portfolio Manager (basic)|
|P||F||Morningstar Investment Classroom|
|P||F||Access Your Portfolio Anytime, Anywhere via Your Mobile Device|
|P||Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)|
|P||Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)|
|P||Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)|
|P||Portfolio Monitor (monthly and on-demand personalized portfolio statements)|
|P||Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)|
|P||Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters|
|P||Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)|
|P||Discounts on Morningstar newsletters, books, seminars, and more|
Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.
Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.