News Column

Futures Slip After Default Averted

October 17, 2013

Associated Press

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A trader on the floor of the New York Stock Exchange Thursday morning (Associated Press)

NEW YORK (AP) Stock futures fell Thursday after huge rally that followed an eleventh-hour deal to avert a default on U.S. debt.

The deal reached in Congress Wednesday, however, only allows the Treasury to borrow money through Feb. 7.

Dow Jones industrial futures fell 66 points to 15,183. S&P futures gave up 3.1 points to 1,710.10. Nasdaq futures lost 1.75 points to 3,262.25.

It is a big day for corporate earnings, with a number of major players topping Wall Street estimates.

Verizon's quarterly profit jumped 40 percent as it added more than a million wireless devices to its network. Union Pacific posted a 10 percent rise in profit higher shipping rates helped the railroad offset flat volume.

Yet Goldman Sachs' third-quarter profit was flat and revenue fell sharply as trading in bonds and other securities slowed.

The Labor Department released weekly unemployment benefit claims, which were again skewed by a backlog in California.

Applications dropped 15,000 to a seasonally adjusted 358,000 last week. The less volatile four-week average rose 11,750 to 336,500.

About 70,000 furloughed federal employees sought benefits in the week ended Oct. 5, but they aren't included in the overall totals. The government opened for business on Thursday after a 16-day shutdown.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Original headline: Futures slip after US default averted


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Source: Copyright 2013 The Associated Press. All rights reserved.