Stock Market News
US pre-open: Stocks seen up despite government shutdown worries; Senate vote key
US futures pointed to firmer open on Wall Street on Friday following a downbeat close the day before, as investors put aside their concerns about a possible government shutdown ahead of a key Senate vote.
At 1215 GMT, Dow Jones Industrial Average and S&P 500 futures were up 0.3% and 0.4%, respectively, while Nasdaq futures were 0.5% higher.
Stocks in the US closed down on Thursday amid worries about a possible government shutdown. Although the House of Representatives voted 230-197 to pass a one-month spending bill, it could be derailed if there is enough opposition in the Senate.
The Senate has taken an initial vote but needs an additional procedural step that requires 60 votes, which means the Republicans need the help of at least nine Democrat votes to pass the bill.
IG analyst Joshua Mahony said: "Tensions are rising amid a potential government shutdown in the US, with the senate failing to even schedule a vote, let alone pass a vote to stave off another shutdown. Despite a proposition from the House to provide a stopgap solution, there is clear opposition from the Democrats in the Senate, with the immigration policy DACA at the centre of the fight. With an agreement needed by midnight, there is a real possibility that we will see a shutdown, helping drive the US dollar lower once more."
In corporate news, IBM was under the cosh in pre-market trade after reporting a fourth-quarter loss late on Thursday on the back of a one-off $5bn charge from the new US tax system.
American Express was also likely to be in focus after posting its first quarterly loss in more than a quarter-century and saying it would suspend its share buybacks.
Schlumberger was set for an active day after the oilfield services company's fourth-quarter adjusted profit and revenue beat analysts' expectations.
Earnings were still due from SunTrust Banks and Citizens Financial Group.
Still to come, Atlanta Federal Reserve president Raphael Bostic is due to appear in a moderated discussion about the economy, while the Michigan consumer sentiment index for January is at 1500 GMT.
At 1215 GMT, Dow Jones Industrial Average and S&P 500 futures were up 0.3% and 0.4%, respectively, while Nasdaq futures were 0.5% higher.
Stocks in the US closed down on Thursday amid worries about a possible government shutdown. Although the House of Representatives voted 230-197 to pass a one-month spending bill, it could be derailed if there is enough opposition in the Senate.
The Senate has taken an initial vote but needs an additional procedural step that requires 60 votes, which means the Republicans need the help of at least nine Democrat votes to pass the bill.
IG analyst Joshua Mahony said: "Tensions are rising amid a potential government shutdown in the US, with the senate failing to even schedule a vote, let alone pass a vote to stave off another shutdown. Despite a proposition from the House to provide a stopgap solution, there is clear opposition from the Democrats in the Senate, with the immigration policy DACA at the centre of the fight. With an agreement needed by midnight, there is a real possibility that we will see a shutdown, helping drive the US dollar lower once more."
In corporate news, IBM was under the cosh in pre-market trade after reporting a fourth-quarter loss late on Thursday on the back of a one-off $5bn charge from the new US tax system.
American Express was also likely to be in focus after posting its first quarterly loss in more than a quarter-century and saying it would suspend its share buybacks.
Schlumberger was set for an active day after the oilfield services company's fourth-quarter adjusted profit and revenue beat analysts' expectations.
Earnings were still due from SunTrust Banks and Citizens Financial Group.
Still to come, Atlanta Federal Reserve president Raphael Bostic is due to appear in a moderated discussion about the economy, while the Michigan consumer sentiment index for January is at 1500 GMT.
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