Futures indices are down ahead of today’s trading on Wall Street as nerves persist over the anemia in the credit market and concerns regarding the fate of the $700 billion U.S. government bank bailout plan.
The Dow Jones futures index is currently down 96 points, while the Nasdaq index is down 13 points. The S&P futures index is down 12 points and below its fair value, a mathematical formula that determines prices taking into account interest rates, dividends, and the maturity of the futures contract. There is nervousness in the market, although the Senate approved a bill yesterday that is supposed to stabilize the financial system, as the decision of the House of Representatives is awaited, which has already rejected this government proposal once. Nothing is certain in the re-vote, which is most likely to be held on Friday, analysts say.
"I wouldn’t bet on anything right now because I don’t know how the House of Representatives will vote. If this bill doesn’t pass, the game is over. Congress has a chance tomorrow to prevent a possible total collapse of the U.S. economy," says Paul Mendelsohn, a strategist at Windham Financial Services. This is the most important, but not the only reason for investors’ concerns. The hotel chain Marriott International warned today that, due to rising unemployment and falling consumer and corporate spending, 2009 will be a very difficult year.
