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U.S. futures rise on U.S. budget hopes; Dow Jones up 0.20%

Published 10/15/2013, 06:49 AM
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Investing.com - U.S. stock futures pointed to a higher open on Tuesday, as hopes for progress in ongoing U.S. budget negotiations ahead of the upcoming debt ceiling deadline lifted market sentiment.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.20% rise, S&P 500 futures signaled a 0.14% gain, while the Nasdaq 100 futures indicated a 0.24% increase.

U.S. Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached.

If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.

Any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.

Tech giant Apple was expected to be active, after announcing that Burberry Chief Executive Officer Angela Ahrendts was to take up its new post of senior vice-president of retail and online stores, reporting to CEO Tim Cook.

Apple shares climbed 0.44% in pre-market trade, following the news, while Burberry dropped 4.61%.

In the same sector, BlackBerry, down 0.25% in extended trading, was also at the center of attention, as it was taking out full-page ads in newspapers worldwide in a bid to convince carriers, consumers and partners that they shouldn’t abandon the struggling smartphone maker.

In earnings news, Teradata Corp. dove 12.93% pre-market after the computer-data storage company reported third-quarter profit that missed analyst projections.

Elsewhere, Walmart, down 0.11% in after-hour trade, was also likely to be in focus as it was preparing to host a live webcast for investors, with CEO Mike Duke due to speak.

Citigroup, Coca-Cola, Johnson & Johnson, Yahoo and Intel, all scheduled to report third quarter earnings later in the day.

Across the Atlantic, European stock markets were higher. The EURO STOXX 50 gained 0.66%, France’s CAC 40 climbed 0.53%, Germany's DAX advanced 0.74%, while Britain's FTSE 100 rallied 0.77%.

During the Asian trading session, Hong Kong's Hang Seng Index climbed 0.51%, while Japan’s Nikkei 225 Index added 0.26%.

Later in the day, the U.S. was to release a report on manufacturing activity in the Empire state.


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