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US STOCKS-Futures down as Washington stalemate continues
October 7, 2013 / 11:29 AM / 4 years ago

US STOCKS-Futures down as Washington stalemate continues

* Futures off: Dow 131 pts, S&P 16 pts, Nasdaq 27.75 pts

By Chuck Mikolajczak

NEW YORK, Oct 7 (Reuters) - U.S. stock index futures fell on Monday, as the partial government shutdown continued with no signs of a thaw in negotiations among politicians.

* Republican House Speaker John Boehner vowed on Sunday not to raise the U.S. debt ceiling without a “serious conversation” about what is driving the debt, while Democrats said it was irresponsible and reckless to raise the possibility of a U.S. default.

* The United States faces a deadline of Oct. 17 to raise its $16.7 trillion debt limit, which could result in a default if not increased.

* The S&P 500 has fallen two straight weeks and is down 2 percent from its all-time closing high of 1,725.52 on concerns about the effect of dysfunction in Washington on the economy.

* S&P 500 futures fell 16 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 131 points, and Nasdaq 100 futures dropped 27.75 points.

* Apollo Tyres of India and U.S.-based Cooper Tire & Rubber Co disagree over whether Apollo should pay a lower price in its $2.5 billion takeover, the latest hurdle in a deal beset by lawsuits, labor issues and unhappy Apollo investors. Cooper Tire shares slumped 10.2 percent to $26.50 in premarket trade.

* Private equity firm KKR & Co LP is nearing a deal to acquire lifting equipment company Crosby Group LLC for around $1 billion, two people familiar with the matter said on Sunday.

* Former Dow component Alcoa Inc as well as Yum! Brands Inc are scheduled to report results after the close as corporate earnings season gets underway.

* European stocks dropped in early trade, with one benchmark index hitting a four-week low, as the lack of progress in resolving Washington’s budget standoff kept investors on edge.

* Asian shares also declined, as Japan’s Nikkei share average dropped 1.2 percent, hitting a one-month low and extending last week’s 5 percent tumble.

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