MW: Stock futures flat as Senate weighs autos' bailout
Costco same-store sales rise; Sprint Nextel debt cut to 'junk' status
LONDON (MarketWatch) -- U.S. stock market futures erased early gains to stand little changed Thursday as legislation on an auto-industry bailout faced stiff opposition in the Senate after achieving passage in the House of Representatives.
S&P 500 (SPY:
90.11, +0.61, +0.7%) futures were down 2 points to 893.90, while Nasdaq 100 (QQQQ:
87.64, +0.53, +0.6%) futures were up 15 points at 8,730.
Stocks closed higher Wednesday on Wall Street, boosted by progress on the bailout for the auto industry, though opposition to the plan from several Senate Republicans shaved earlier gains. The Dow Jones Industrial Average ended the session up 70 points, while the S&P 500 gained 10 points and the Nasdaq Composite Index climbed 18 points.
The House late Wednesday approved the $14 billion federal loan package in a 231-170 vote, but at least one key lawmaker, Sen. Richard Shelby, R-Ala., has threatened a filibuster to block the legislation. See full story.
Shares of General Motors Corp. (GM:
4.60, -0.10, -2.1%) were up more than 3% in off-hours trading, while Ford Motor Co. (F:
3.25, +0.02, +0.6%) also rose.
On the economic front, the latest figures on initial unemployment claims are expected to show a further rise last week from the previous level of 509,000.
The dollar fell against its main rivals, losing 1.5% to stand at 91.38 Japanese yen, while the euro rose 1.7% to $1.3234.
Oil stepped higher as the dollar declined, with light crude for January delivery gaining $2.05 to reach $45.57 a barrel in electronic trading.
Costco Wholesale Corp. (COST:
53.69, +0.59, +1.1%) reported on Thursday that fiscal first-quarter net income was about flat, reflecting bargain-hunting shoppers looking for deals in a downbeat economy. Same store sales edged up 1% and total sales rose 3.6%. See full story.
Shares of Sprint Nextel Corp. (S:
2.42, -0.12, -4.7%) are likely to be in focus after Moody's Investors Service cut the company's unsecured debt to "junk" status. The downgrade comes as the telecom carrier's market position has weakened significantly and as Sprint Nextel continues to seek a turnaround in its wireless operations, the debt-rating agency said.
Also on the telecom front, the $41 billion leveraged buyout of Canadian carrier BCE Inc. (BCE:
18.29, +0.48, +2.7%) ended after auditors KPMG concluded the company that would have emerged from the deal wouldn't be solvent.
Overnight, Japan's Nikkei 225 average rose 0.7%, while London's FTSE 100 index recently was up 0.2%.
