Stocks rose today on the eve of a debt default despite a trench
warfare-like fiscal stalemate in Washington.
The Senate is working on yet another bill that the House of
Representatives would find palatable. The House failed to pass two
bills yesterday that would have allowed the government to re-open
and avoid a historic debt default. The Senate will meet at noon
today. The body might be able to vote on a proposal by Harry Reid
and Mitch McConnell, the top-ranking members of each party, which
is reportedly very close to completion. The deal would keep the
government funded until Jan. 15.
As the government's haplessness has already caused half a month of
anguish for furloughed workers, program beneficiaries and financial
markets, Fitch has already downgraded America's AAA debt rating to
negative from stable, saying that the debate is "undermining
confidence in the role of the US dollar as the preeminent global
reserve currency, by casting doubt over the full faith and credit
of the US."
While the government shutdown has brought a drought of economic
indicators, today we will at least get a look a the housing
market's health. The National Association of Homebuilders' housing
market index in August is expected to repeat September's level of
58. The Federal Reserve will also release its Beige Book of
anecdotal signs of economic conditions this afternoon.
US stock index futures rose this morning following Tuesday's
(INDEXDJX:.DJI) futures were up 0.40% at 15,155. Futures on the
(INDEXSP:.INX) rose 0.38% to 1,698.40 and
(INDEXNASDAQ:.IXIC) futures climbed 0.25% to 3,249.00.
Today is a big day for financial earnings.
Bank of America
), the second-largest US lender, posted a profit of $0.20 per
share, up from just a penny a year ago. Investment banking profits
helped offset the lagging market for mortgages and consumer
lending. Shares of the bank declined slightly in pre-market
PNC Financial Services Group
) saw revenue drop 4% but earnings rose to $1.79 per share from
$1.64 per share last year.
) will report after the bell.
) beat earnings expectations yesterday as the enterprise PC market
improved. Profit came in at $0.05 per share and revenue rose 0.2%
to $13.48 billion. However, shares fell in after-hours trading as
the company said it will keep inventories lean in the coming
Twitter updated its S-1, confirming that it will chose the
(NDAQ). It also revealed that losses widened in the third quarter
to $64.6 million from $21.6 million a year ago.