Stock futures flat on uncertainty over "fiscal cliff" talks
By Ryan Vlastelica | December 20, 2012 11:42 PM EST
Stock futures were flat on Thursday amid uncertainty over U.S. fiscal negotiations, as President Barack Obama threatened to veto a controversial Republican plan, suggesting a deal wouldn't come as soon as many investors had hoped.
* Equities have been volatile this week, though they notched strong gains Monday and Tuesday as the latest offers from President Barack Obama and Republican Speaker of the House John Boehner indicated progress was being made in negotiations.
* On Wednesday, however, shares sharply fell as a rise in tensions in budget negotiations threatened to unravel recent progress. While many investors continue to expect a deal to avert the so-called fiscal cliff, steep tax hikes and spending cuts due to take effect in 2013 that may tip the economy into recession, a deal may not come as quickly as had been previously anticipated.
* Boehner, in a brief press conference Wednesday, said his chamber would pass a proposal that Obama had already threatened to veto, which spares many wealthy Americans from tax hikes needed to balance the budget. Obama has already agreed to reductions in benefits for senior citizens.
* Stocks have rallied recently on any sign of progress in the negotiations, led by banking and energy shares, which tend to outperform in times of economic expansion.
* S&P 500 futures rose 0.6 point and were above 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 added 1 point and Nasdaq 100 futures rose 4 points.
* Stocks ended a two-day rally with Wednesday's decline, though they remain near a two-month high.
* IntercontinentalExchange Inc
* Google Inc
* Investors await the latest economic data, including weekly jobless claims and the final estimate on third-quarter gross domestic product, both due at 8:30 a.m. ET (1330 GMT) The pace of growth is likely to be revised up to 2.8 percent from 2.7 percent, while claims are expected to rise to 357,000 in the latest week, from 343,000.
* November existing home sales are due at 10:00 a.m. and are seen rising 1.3 percent, compared with 2.1 percent in October, while the Philadelphia Federal Reserve Bank's December business activity survey is forecast to come in at -3.0 compared to -10.7 in November.
(Editing by Bernadette Baum)
Most Popular Slideshows
- Top 5 Richest Tennis Athletes
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- 2014 US Open Update (Day 4 - Men's Singles): Murray, Djokovic, Raonic and Isner Advance to 3rd Round [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
Join the Conversation
- Apple iWatch is iPhone 6 Accessory on Sept 19 Release Date: 6 Confirmed Specs & Features
- iPhone 6 Release Date Update: 4.7-Inch Model Scores 65.8% In Screen-To-Size Ratio; A Surprise Entry Scales Top Spot [List Attached]
- Canada Vs Russia War Erupts Via Twitter on Russia-Not Russia Maps
- Product Recall Alert: Hewlett-Packard Pulls Out 6M Power Cords from US, Canada Over Fire Hazard Concerns, Australia Also Affected
- ISIS Wants $6.6M and Release of Aafia Siddiqui in Exchange of Head of Female US Humanitarian Aid Worker, 1st American Fighting for Jihadis Dead
- Ukraine Ceasefire Looks Remote As Putin Talks Tough At Meeting With Poroshenko
- Windows 9 To Include Interactive Live Tiles and Notification Center in Metro 2.0