ECONOMIC INDICATORS

U.S. stock-index futures drop on concern over budget agreement

BLOOMBERG FILE PHOTO/TIM BOYLE
U.S. STOCK FUTURES FELL over concerns on the fiscal cliff and a lack of a budget deal before the Dec. 31 deadline.
Posted 12/28/12

ATHENS - U.S. stock futures fell, indicating the Standard & Poor’s 500 Index will drop for a fifth day, amid concern talks between President Barack Obama and Republican lawmakers may not yield a budget deal by the year-end deadline.

Bank of America Corp. and Citigroup Inc. tumbled more than 1 percent as financial shares dropped. Home Depot Inc. and Lowe’s Cos. slid at least 0.7 percent amid a looming strike by dockworkers.

S&P 500 index futures expiring in March dropped 0.5 percent to 1,403.5 at 8:41 a.m. in New York. The benchmark index has slipped 0.8 percent this week. Dow Jones Industrial Average futures lost 58 points, or 0.5 percent, to 12,945 today.

“It’s crunch time,” said Mike Lenhoff, chief strategist at Brewin Dolphin Securities Ltd. in London. “I think somebody has got to give. Otherwise things look pretty bad.”

Obama summoned Republican and Democratic leaders to a White House meeting three days before a year-end deadline to avoid $600 billion in spending cuts and tax increases, amid increasing concern that the time is too short to reach a deal.

The president, who had been negotiating one-on-one with House Speaker John Boehner, will meet today with Republicans Boehner and Senate Minority Leader Mitch McConnell, and Senate Majority Leader Harry Reid and House Minority Leader Nancy Pelosi, both Democrats. The meeting will be held at 3 p.m. Washington time.

The S&P 500 pared losses to 0.1 percent yesterday as the House of Representatives planned a session on Dec. 30. The gauge has rallied 13 percent this year, its largest annual gain since 2009.

Home sales

A report from the National Association of Realtors at 10 a.m. New York time may show that pending sales of existing houses climbed 1 percent in November from the previous month, when it increased 5.2 percent, according to the median forecast of 35 economists in a Bloomberg News survey.

Financial shares tumbled. Bank of America dropped 1 percent to $11.35, and Citigroup erased 1.1 percent to $38.83.

Home Depot fell 1 percent to $60.47 and Lowe’s declined 0.7 percent to $34.90. The home-improvement chains have the most at stake among retailers facing a dockworkers’ strike, with possible port closings cutting off shipments right before the lucrative gardening season. The International Longshoremen’s Association has vowed to walk out if a deal isn’t reached before the Dec. 29 expiration of its contract with the U.S. Maritime Alliance.

Calendar
PBN Hosted
Events

See the List of 2014 Winners. And save the date - September 10th - for the 3rd Annual Fastest Growing & Innovative Companies program at Rosecliff Mansion in Newport.
  • Healthiest Employers
    Thank you to all who attended the 3rd Annual Healthiest Employers Luncheon today ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement