Debt drama darkens investors' mood

  @CNNMoneyInvest October 8, 2013: 7:22 AM ET
sp 500 futures 7

Click on chart to track premarkets


There's a cautious mood on Wall Street as investors consider Monday's s sell-off, which was led by heightened uncertainty over the U.S. debt ceiling and government shutdown.

U.S. stock futures were barely moving ahead of the opening bell.

Tuesday marks the eighth day of the government's partial shutdown. In that time, the Dow Jones industrial average has dropped 193 points.

Tuesday is also the start of third-quarter earnings season, with results due after the closing bell from aluminum producer Alcoa (AA, Fortune 500), along with Yum! Brands (YUM, Fortune 500), the parent of KFC, Pizza Hut and Taco Bell.

Related: 4 ways a debt ceiling crisis could affect you

But investors will likely remain focused on the debt drama playing out in Washington.

"Earnings, I expect they're going to take a backseat as the impasse overshadows," said Peter Cardillo, chief market economist at Rockwell Global Capital. "We're probably going to tread water as we get closer to the Oct. 17 date [a critical debt ceiling deadline]."

Related: Fear & Greed Index still mired in fear

U.S. stocks fell Monday on the continuing political standoff.

Despite heated posturing, many hope and expect the Democrats and Republicans will be able to reach a last-minute agreement to raise the debt ceiling and avoid a default.

European markets were all moving lower in morning trading, led by declines in London's FTSE 100, while Asian markets ended with gains. The Shanghai Composite index jumped by 1% after investors returned from a long holiday. To top of page

Join the Conversation
Sponsored by
Index Last Change % Change
Dow 16,408.54 -16.31 -0.10%
Nasdaq 4,095.52 9.29 0.23%
S&P 500 1,864.85 2.54 0.14%
Treasuries 2.72 0.08 3.19%
Data as of 7:14pm ET
Company Price Change % Change
Bank of America Corp... 16.15 0.00 0.00%
Facebook Inc 58.94 0.00 0.00%
General Electric Co 26.56 0.00 0.00%
Cisco Systems Inc 23.19 -0.02 -0.09%
Micron Technology In... 23.91 0.00 0.00%
Data as of Apr 17
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.36%4.24%
15 yr fixed3.39%3.26%
5/1 ARM3.36%3.27%
30 yr refi4.34%4.22%
15 yr refi3.38%3.24%
View rates in your area
Find personalized rates:
Rate data provided
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.