US STOCKS-Futures fall as shutdown enters second day

Wed Oct 2, 2013 8:02am EDT
 
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* Govt shutdown enters second day with no end in sight

* ADP report may hold extra weight as some data delayed

* Top Microsoft investors urge Gates to step down

* Futures down: Dow 100 pts, S&P 8.3 pts, Nasdaq 10.5 pts

By Ryan Vlastelica

NEW YORK, Oct 2 (Reuters) - U.S. stock index futures fell on Wednesday as a partial government shutdown in Washington entered a second day, adding to concerns about when the issue might be resolved.

There were few signs that Congress was making progress in agreeing on a spending bill that would reopen operations. The Democratic-led U.S. Senate voted Tuesday to kill Republicans' latest attempts to modify an emergency funding bill, and sent a "clean" measure back to the House of Representatives that would extend funding for government agencies until Nov. 15.

U.S. Treasury Secretary Jack Lew late Tuesday said the Treasury had started using its last tools to push back the date when the government will run out of legal borrowing authority.

The shutdown's impact on economic growth and market volatility will likely increase the longer it continues. Market participants are also watching the situation for an indication of how an impending debate on the debt ceiling might play out. That issue is considered far more important for the economy, as it could result in an unprecedented debt default if not passed.   Continued...