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Jan 25, 2019

CNBC I Before the Bell: Dow futures rise triple digits on hopes for an end to the government shutdown

Alexandra Gibbs



U.S. stock index futures rose ahead of Friday's open, as investors grew more optimistic about an end to the government shutdown and geared up for another batch of corporate earnings.
Around 6 a.m. ET, Dow futures indicated a positive open of more than 100 points. Futures on the S&P 500 and Nasdaq were also pointing to a higher start to trading.

GP: NYSE traders
Traders work on the floor of the New York Stock Exchange (NYSE) on November 28, 2018 in New York City.
Spencer Platt | Getty Images
The U.S. Senate, after rejecting two shutdown-ending bills, was searching for a way to end a government closure entering its 35th day and threatening the economy, as hundreds of thousands of federal workers missed a second paycheck on Friday.
Afterward, a bipartisan group of lawmakers said they were introducing an amendment in the Senate to temporarily reopen the roughly one-quarter of the federal government affected by the longest shutdown in U.S. history. Senator Ben Cardin, one of the Democratic co-sponsors, said he did not think it contained any wall funding.
Trump said on Thursday that if Republican Senate Majority Leader Mitch McConnell and Senate Democratic leader Chuck Schumer reached an agreement to end the shutdown, he would support it.
As another week draws to a close, a number of fresh company earnings will be keeping investors busy. Some of the major brands set to report include AbbVie, Colgate-Palmolive, and D.R. Horton — all of which are due to come out before the bell.
Meanwhile, investors continue to monitor concerns surrounding a trade deal with China.
On Thursday, markets came under pressure after Commerce Secretary Wilbur Ross said that trade negotiations with China were far from complete. "We would like to make a deal but it has to be a deal that will work for both parties," Ross told CNBC. "We're miles and miles from getting a resolution."
Ross' comments come as Washington and Beijing try to remedy their trade disputes, during a tariff cease-fire which is slated to finish at the start of March.
Elsewhere, the government shutdown continues to weigh. In the latest surrounding the subject, the Senate blocked bills on Thursday that would fund the government.
A Republican-backed proposal and a measure supported by Democrats didn't acquire the 60 votes they needed to be cleared. This comes as 800,000 federal workers face another round of missed paychecks, and government services suffer due to the shutdown.
— CNBC's Jacob Pramuk and Reuters contributed to this report.

Source: CNBC

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