FOX Business: Capitalism Lives Here
U.S. stock-index futures pointed to more losses for the markets after the worst two-day retreat in a year amid ongoing worries about the U.S. fiscal cliff and the debt crisis in Europe.
As of 7:56 a.m. ET, Dow Jones Industrial Average futures fell 58 points to 12718, S&P 500 futures dipped 6 points to 1369 and Nasdaq 100 futures slumped 7.8 points to 2564.
With the U.S. elections out of the way, Wall Street is looking squarely at Washington, D.C. for answers on how politicians will overcome deep ideological schisms on how to get the nation's fiscal house back in order. Thus far, traders have sold into the uncertainty.
The Dow, S&P 500 and Nasdaq all have all shed more than 3% in the past two days. The Dow and Nasdaq are both at late July levels, while the S&P 500 is at its lowest point since early August. Conversely, the yield on the 10-year U.S. Treasury bond has slumped to its lowest level since October 3 as traders have bought up the safe-haven asset.
President Barack Obama is expected to make his first remarks from the White House since his victory in securing a second term. He is expected to discuss the economy as well as the fiscal cliff -- a painful mixture of spending cuts and tax hikes that go into effect in January. House of Representatives Speaker John Boehner, the highest ranking Republican, is also set to speak on the day. The President and Speaker have had an oftentimes contentious relationship, navigating the crisis over the debt ceiling and other highly-polarized scuffles.
On the economic front, traders will get a report on U.S. trade prices and a look at consumer sentiment. The price of American imports are forecast to have held steady in October from the month before, while export prices may have edged up 0.2% on the same basis.
The Reuters/University of Michigan gauge of consumer sentiment is forecast to have risen by 0.4 point in early November from October. The measure often has a market impact, especially within the consumer discretionary and consumer staples sectors.
In Europe, talks between Greece and the European Union and International Monetary fund over a crucial aid package dragged on. A decision may not be made next week on a $40 billion rescue package, according to a report by Bloomberg News. However, the country is still unlikely to default on a debt payment that is also due next week, the report that cites unnamed sources said.
Commodities markets were mixed. The benchmark crude oil contract fell 52 cents, or 0.61%, to $84.57 a barrel. Wholesale New York Harbor gasoline climbed 0.09% to $2.61 a gallon.
Gold rose $5.10, or 0.3%, to $1,731 a troy ounce.
The Euro Stoxx 50 slumped 0.73% to 2461, the English FTSE 100 dipped 0.5% to 5747 and the German DAX sold off by 1.1% to 7128.
In Asia, the Japanese Nikkei 225 skidded lower by 0.9% to 8758 and the Chinese Hang Seng dropped 0.85% to 2241.