Thursday November 10th

10-11-2016

Dow set to open at record high as traders continue to digest election result

U.S. stock index futures pointed to a higher open on Thursday as traders digested Tuesday's presidential election. Dow futures rose about 106 points, putting the index on track to hit a new all-time intraday high at the open. S&P and Nasdaq futures gained 11.2 and 29 points, respectively. It was widely expected that if Donald Trump — who is set to meet with President Barack Obama on Thursday — won, there would be chaos in markets since Wall Street had been seemingly expecting a Clinton win. While there's still an edge of uncertainty, on Wednesday markets chose to focus on elements from Trump's acceptance speech, in which he discussed spending on infrastructure projects that could boost growth. That drove industrials and infrastructure stocks higher, and raised speculation about inflation. That helped drive bond yields higher, as well as bank stocks. On the data front, jobless claims came in at 254,000, with the Federal budget due at 2:00 p.m. On the earnings front, Kohl's, Macy's and Ralph Lauren all reported before the bell. Disney, Michael Kors, Nordstrom and Petrobras are due to report after the bell. In Europe, the pan-European Stoxx-600 index was around 0.34 percent higher on Thursday. In Asia, the Shanghai Composite in China closed 1.36 percent higher, while the Nikkei in Japan closed 6.72 percent higher. In oil markets, Brent crude traded at $46.12 a barrel on Thursday, down 0.52 percent, while U.S. crude was around $44.75 a barrel, down 1.1 percent. Gold steadied on Thursday as uncertainty regarding the economic policies of new U.S. President-elect Donald Trump helped support the precious metal even as some investors returned to riskier assets such as stocks. Trump's plans call for new infrastructure and massive tax cuts could boost the U.S. budget deficit. Coupled with protectionist trade policies, some are concerned the policy mix would ultimately hit the dollar and increase inflation. Spot gold was down 0.08 percent at $1,276.51 an ounce at 8:27 a.m. EDT, while U.S. gold futures climbed 0.27 percent to $1,276.90 per ounce.