US stocks-futures flat on auto rescue unease
Friday, 12 December 2008
NEW YORK, Dec 11 (Reuters): United States (US) stock futures were little changed Thursday due to caution ahead of a likely vote in the Senate on the rescue package for US automakers.
The proposal, providing up to $14 billion in loans to the beleaguered US automakers was passed by the House of Representatives late Wednesday but its prospects look grim in the Senate where supporters face an uphill struggle to keep it alive.
Shares of General Motors and Ford were little changed before the bell.
"The House passed the bill last night, and now it's in the Senate where it appears that the chances are somewhat slim," said Peter Cardillo, chief market economist at Avalon Partners in New York.
S&P 500 futures SPc1 rose 0.20 points but were below 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 DJc1 climbed 15 points, and Nasdaq 100 NDc1 gained 4.75 points.
The proposal, providing up to $14 billion in loans to the beleaguered US automakers was passed by the House of Representatives late Wednesday but its prospects look grim in the Senate where supporters face an uphill struggle to keep it alive.
Shares of General Motors and Ford were little changed before the bell.
"The House passed the bill last night, and now it's in the Senate where it appears that the chances are somewhat slim," said Peter Cardillo, chief market economist at Avalon Partners in New York.
S&P 500 futures SPc1 rose 0.20 points but were below 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 DJc1 climbed 15 points, and Nasdaq 100 NDc1 gained 4.75 points.