US Futures Get Respite From Debt Limit Debacle as Obama to Nominate Yellen for Fed Chair

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US stock futures were pointing higher Wednesday after the White House said President Barack Obama will nominate Janet Yellen as the next chair of the U.S. Federal Reserve, replacing Ben Bernanke, whose term ends on Jan. 31.

Yellen, expected to be confirmed by the U.S. Senate, is considered a so-called dove, who would be careful about pulling back from policies that have supported the markets, including the $85-billion-a-month asset purchasing program. The market had expected tapering of the program to start in September but the Fed unexpectedly pulled back, citing data that didn't exclusively point to economic recovery. Minutes from the Sept. 17-18 Fed meeting, out today at 2 pm, should provide more details on the Fed's decision.

Meanwhile, the stalemate continued in Washington, with Obama saying he won't give in to "extortion" by Republicans with regards to the debt limit that will be reached on Oct. 17. Increasingly, Republicans have said they don't think that reaching the debt limit will be a financial catastrophe.

In equities, Ariad Pharmaceuticals ( ARIA ) shed 58.23% after saying it has paused enrollment in its Iclusig trial for the treatment of leukemia. Ariad will reduce dosages in patients already enrolled, after adverse side-effects. The Men's Wearhouse( MW ) added 32% after Jos. A. Bank said it had made a $48-per-share takeover offer for the company.

U.S. PRE-MARKET INDICATORS

-Dow Jones Industrial up 0.22%

-S&P 500 futures up 0.25%

-Nasdaq 100 futures up 0.26%

-Nasdaq-100 Pre-Market Indicator up 0.19%

GLOBAL SENTIMENT

Nikkei up 1.03%

Hang Seng down 0.63%

Shanghai Composite up 0.62%

FTSE-100 down 0.13%

DAX-30 up 0.16%

PRE-MARKET SECTOR WATCH

(+) Large cap tech: higher

(+) Chip stocks: higher

(+) Software stocks: higher

(+) Hardware stocks: higher

(+) Internet stocks: higher

(+) Drug stocks: higher

(+) Financial stocks: higher

(+/-) Retail stocks: unchanged

(+) Industrial stocks: higher

(+) Airlines: higher

(+) Autos: higher

UPSIDE MOVERS

(+) JCP (+2.96%) Saks CEO Stephen Sadove joins board

(+) KYTH (+3.03%) Prices 2.6 million share sale at $45.75 per share

(+) AA (+2.77%) Q3 results tops expectations

DOWNSIDE MOVERS

(-) CYTR (-18.98%) Prices 10 million share offer at $2.25 per share

(-) FDO (-2.66%) Q4 earnings beat but 2014 guidance disappoints market

(-) YUM (-6.99%) Q3 results were below expectations



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: ARIA , MW

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