US stock futures rattled by budget impasse

AP News
Posted: Sep 27, 2013 9:03 AM
US stock futures rattled by budget impasse

NEW YORK (AP) — Stock futures slid Friday with the path to a U.S. budget resolution growing more convoluted by the day.

Dow Jones industrial futures fell 54 points to 15,207. S&P futures have lost 7.4 points to 1,685.10. Nasdaq futures are down 13 points to 3,213.

The budget fight on Capitol Hill overshadowed a report from the Commerce Department showing that income for Americans grew at its fastest pace in six months.

Rising income helped to drive consumer spending up 0.2 percent last month, up from 0.2 percent in July.

That is crucial because consumer spending drives about 70 percent of all U.S. economic activity.

That did not ease angst in U.S. markets, which appear to be headed for a weekly loss.

The Senate on Friday plans to send a bill to the fractious House that would keep the government operating through mid-November and head off a partial shutdown at midnight Monday.

But already, leading House Republicans are vowing to reject any bill in which the Senate has stripped away language to dismantle President Barack Obama's health care law.

That's exactly what the Senate did and what they are sending to the House.

Also on Friday, the struggling retailer J.C. Penney Co. said it expects to raise about $811 million through a stock offering and projected that by the end of the year, it would have about $1.3 billion in cash or assets that can readily be converted to cash.

Shares of J.C. Penney slumped more than 7 percent.