Dow Jones Futures: No End To Stock Market Woes; Infrastructure Bill

Dow Jones futures edged higher late Thursday, along with S&P 500 futures and Nasdaq futures, with a possible infrastructure bill vote and Tesla deliveries in focus. The stock market made another lackluster rebound attempt Thursday, reversing lower and closing at session lows once again, despite Congress avoiding a government shutdown.

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Retailers were big losers Thursday, amid weak earnings from CarMax (KMX) and Bed Bath & Beyond (BBBY). But there were broad-based losses once again.

Among the tech titans, Apple (AAPL) and Facebook (FB) are starting to live below the 50-day line, while Amazon.com (AMZN) is below the 200-day line. Microsoft stock and Google parent Alphabet (GOOGL) are starting to get comfortable under the 50-day line, looking a lot like the Nasdaq composite.

Snap (SNAP), Nvidia (NVDA) and AMD (AMD) rebounded toward their 50-day lines but all closed below that key level.

Tesla (TSLA) could report third-quarter deliveries as soon as Friday, with buzz building about about a strong figure. Nio (NIO) will likely report September sales on Friday, with Xpeng (XPEV) and Li Auto (LI) also possible that day. China EV and battery giant BYD (BYDDF) will likely report next week.

Tesla stock dipped but is holding strong in a buy zone. Nio stock, Xpeng and Li Auto are all near multi-month lows. BYD stock has pulled back in the past few weeks but is still near record highs. All four China EV stocks rose Thursday.

Tesla stock, Snap, Nvidia, Microsoft, Google and Microsoft (MSFT) are on IBD Leaderboard. Google and Microsoft stock are on IBD Long-Term Leaders. Google stock is on the IBD 50 as well.

Government Shutdown Averted

The Senate and House have approved a short-term funding bill. It’s going straight to the White House for President Joe Biden’s signature, averting a partial government shutdown by a matter of hours. Congress still needs to approve a debt limit hike to avoid a government default, with Republicans insisting that Democrats pass it on their own. Treasury Secretary Janet Yellen said this week that Oct. 18 is the deadline, though the Congressional Budget Office suggests late October or early November is the drop-dead date for a default.

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Infrastructure Vote?

But the fate of the bipartisan $1 trillion infrastructure bill is in doubt. House Speaker Nancy Pelosi continued to say Thursday afternoon that the House would vote on the package tonight. But many progressives are vowing to oppose the deal. They want significant progress, or outright passage, of another, partisan tax-and-spending bill first. With Democrats holding only a three-seat majority in the House, and only a handful of Republicans likely to back the infrastructure bill, the odds of a high-profile defeat seem high. So Pelosi could pull the infrastructure bill at the last minute, unless she aims to send a message to some of her members.

Reports Thursday evening suggested that the House would cast votes, if at all, after 9 p.m….