October 15, 2013- Sentiment Reverts to Caution as Negotiations Continue

The exuberance that was visible in the afternoon session on Monday seems to be slowly vaporizing, as Wall Street pensively looks ahead to negotiations on to clinch a deal. The major U.S. index futures are pointing to a slightly higher opening on Tuesday. Along with this major risk event, traders may also focus on the results of a regional manufacturing survey, which would give us the first glimpse into manufacturing conditions in October and earnings from bellwether companies such as Citi (C), Johnson & Johnson (JNJ) and Coca-Cola (KO). The Dow futures are rising 28 points, the S&P 500 futures are moving up 2.30 points and the Nasdaq 100 futures are adding 7 points. U.S. stocks staged a remarkable turnaround by mid-day on Monday, ending higher for the third straight session, as signals emerging from Washington hinted that lawmakers are inching closer to an agreement. On the economic front, the New York Federal Reserve is scheduled to release the results of its manufacturing survey for October at 8:30 am ET. Economists expect the index to improve to 7 from 6.29 in September. New York Federal Reserve Bank President William Dudley is scheduled to speak to a Bank of Mexico conference in Mexico City at 10 am ET. San Francisco Federal Reserve Bank President John Williams will speak on the economy in San Franscisco at 11:10 am ET.