US Futures Gain as Government Shutdown Seen Short-Lived; US PMI Short of Views

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US stock futures rose Tuesday, even as lawmakers in Washington failed to reach a deal on spending legislation, forcing a partial shutdown that put some 800,000 government employees on furloughs while another million are asked to work without pay. The shutdown is the first in the U.S. in 17 years but the market reaction suggested investors are confident it will be short-lived.

Meanwhile, the next fiscal crisis looming over the U.S. government is the debt limit, which must be raised by Oct. 17.

The September Purchasing Managers Index fell to 52.8, slightly missing the 52.9 consensus and later this morning, data may show that the September ISM manufacturing index rose to its highest level in over two years.

In equities, Merck ( MRK ) gained 3% before the market open after saying it is cutting 8,500 jobs in an effort to realize about $2.5 billion in annual net cost savings and Edgen ( EDG ) rose 56.18% on reports that Sumitomo plans to buy the company for $12 per share in cash.

U.S. PRE-MARKET INDICATORS

-Dow Jones Industrial up 0.30%

-S&P 500 futures up 0.26%

-Nasdaq 100 futures up 0.17%

-Nasdaq-100 Pre-Market Indicator up 0.11%

GLOBAL SENTIMENT

Nikkei up 0.20%

Hang Seng down 1.50%

Shanghai Composite up 0.68%

FTSE-100 down 0.32%

DAX-30 up 0.49%

PRE-MARKET SECTOR WATCH

(+) Large cap tech: higher

(+/-) Chip stocks: unchanged

(+) Software stocks: higher

(+) Hardware stocks: higher

(+) Internet stocks: higher

(+) Drug stocks: higher

(+) Financial stocks: higher

(+/-) Retail stocks: unchanged

(+/-) Industrial stocks: unchanged

(+/-) Airlines: mixed

(+) Autos: higher

UPSIDE MOVERS

(+) LXRX (+23.53%) Type 2 diabetes drug meets primary endpoint

(+) ALU (+4.53%) Co is rolling out CloudBand Ecosystem to wider circle of businesses

(+) NOK (+2.17%) Low and mid-range phones drive MSFT platform gains in Europe

DOWNSIDE MOVERS

(-) WAG (-1.34%) Q4 EPS in line with views, sales miss forecasts

(-) UN (-0.32%) Expects Q3 sales will slow down



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: EDG , MRK

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