U.S. stock-index futures rose, signaling the Standard & Poor’s 500 Index will rebound from a three-week low, as investors weighed the impact of the first partial government shutdown in 17 years.
S&P 500 futures expiring in December increased 0.5% to 1682.5 at 9:56 a.m. in London. Lawmakers in Washington failed to agree on a federal budget by the midnight deadline, starting a shutdown that will put as many as 800,000 federal employees out of work temporarily and halt some government services. Congress faces a discussion over raising the $16.7 trillion debt ceiling. Dow Jones Industrial Average contracts gained 64 points, or 0.4%, to 15,110 today.
“The market is not panicked about this,” Alexander Friedman, chief investment officer at UBS AG’s wealth-management unit, told Anna Edwards and Mark Barton on Bloomberg Television in London. “It sets up the political wrangling to take place now as opposed to in two weeks, making a debt default less likely. Between now and Oct. 17 is more of a buying opportunity. We haven’t reached any inflection point where investors should give up confidence.”
If the administration remains closed the Labor Department won’t release its monthly employment report on Oct. 4, the day of the scheduled release, according to an Obama administration official. The official, who spoke on condition of anonymity, couldnt say how the report might be affected if the government re-opens before the end of the week.
In corporate news, Under Armour added 1.2% to $80.39 as JP Morgan raised its rating on the stock to neutral from underweight. The shares jumped 33% last quarter.
Citigroup slipped 1.1% to $48 in early New York trading. The stock rose for a fifth consecutive quarter, bringing this year’s gains to 23%.
General Motors Co. and Ford Motor Co. could be active as major car makers are scheduled to release monthly auto sales data. Analysts are predicting car sales could fall in September versus the year-ago period. Read GM, Ford are Tuesday’s stocks to watch.
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