US pre-open: Futures edge higher as investors look ahead to Q3 earnings

Wall Street futures were in the green ahead of the bell on Friday as the Federal government shutdown gets set to drag into its tenth day.

New York Stock Exchange

Source: Sharecast

As of 1230 BST, Dow Jones futures were up 0.13%, while both the S&P 500 and Nasdaq-100 futures had the indices opening 0.07% higher.

The Dow closed 243.36 points lower on Thursday as investors continued to digest minutes from the Federal Reserve's September meeting, which confirmed a 25-basis point rate cut and revealed a split among policymakers over the path ahead.

The US Federal government remained shut down on Friday after the Senate failed for a seventh time to pass a stopgap funding bill on Thursday, with little sign of progress in negotiations between Republicans and Democrats, with the ongoing stalemate delaying key economic data releases.

Positive earnings updates from Delta Air Lines and PepsiCo offered some reassurance on consumer demand, but failed to spark a broader rally, with attention now turning to next week and the beginning of Q3 earnings season, with major banks including Citigroup and JPMorgan set to report throughout the week.

Rostro's Joshua Mahony said: "The standoff in Washington remains unresolved, though some lawmakers have signalled a willingness to compromise on healthcare subsidies to end the impasse. Crucially, there have been some claims that next week's CPI inflation reading will still be released by the BLS irrespective of whether an agreement is reached in time.

"With a degree of hesitancy being shown in US futures, there is likely to be some caution as we weigh up the potential implications of the third quarter earnings season."

On the macro front, a preliminary reading of the University of Michigan's consumer sentiment index will be published at 1500 BST.

No major earnings were scheduled for release on Friday.

Reporting by Iain Gilbert at Sharecast.com

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