Stock Futures Steadfastly Flat as Concern Shifts to U.S. Budget
NEW YORK ( TheStreet) -- U.S. stock futures were holding firm to sideways trading Wednesday, reflecting a cautious tone given the outstanding questions about Federal Reserve tapering and the fast-approaching Oct. 1 deadline for reaching a deal on the federal budget.
Futures for the S&P 500 were down 1.75 points, or 0.63 points above fair value, to 1,690.75. Futures for the Dow Jones Industrial Average were down 3 points, or 27.41 points above fair value, to 15,283. Futures for the Nasdaq were unchanged, or 3.49 points above fair value, to 3,213.25.
Mark Newton, chief technical analyst at Greywolf Execution Partners, said in a note that the number of stocks making new 52-week highs on all exchanges as of Tuesday of last week lagged by far the levels hit in early August, May and January.
"Markets are still in the midst of one of the bigger cycle periods of the month and quarter for trend change," Newton said. "It's also worth noting that momentum continues to register extraordinarily low readings compared to either early August or May highs in the U.S. indices."
In corporate news, AutoZone
Durable-goods orders rose by a slightly better than expected 0.1% in August versus expectations that it would come in flat and after falling by a downwardly revised 8.1%, the Census Bureau reported. Orders excluding the transportation component fell 0.1% versus the expectation of a 1% rise and after declining by an upwardly revised 0.5%. Andrew Wilkinson, the New York-based chief economic strategist at Miller Tabak, said in a note that while the report was not weak overall, it does not point to an acceleration of activity and argues in favor of the FOMC's recent decision to await further data points that might indicate sustainability of demand.