Tuesday November 8th

8-11-2016

Wall Street set for pause as Election Day arrives

U.S. stock index futures indicated a flat open with investors focused firmly on the elections as voters head to the ballot box on Tuesday. The Dow Jones industrial average rose approximately 370 points on Monday after the FBI again cleared Democratic nominee Hillary Clinton over her use of a private server. "Markets are certainly going into today in a much better mood now after that FBI news on Sunday night saw risk assets claw their way back following a near two-week sell-off," Jim Reid, a strategist at Deutsche Bank, said in a morning note. Financial markets in the U.S. and around the world had been largely pricing in a victory for Clinton over Republican nominee, Donald Trump. However, market expectations for Congress, had been for the House to remain under GOP control while the Senate flips in favor of the Democrats. The S&P 500 advanced more than 2 percent on Monday. It snapped a nine-day losing streak, its longest since December 1980. The Nasdaq composite outperformed, rising 2.4 percent. The three major indexes also posted their best day since March 1. But investors are set for a bout of caution after the rally Monday. In Europe, the pan-European Stoxx 600 was slightly higher and most Asian bourses eked out modest gains overnight. In Japan, the Nikkei 225 finished down 0.03 percent, or 5.83 points, at 17,171.38, while South Korea's Kospi ended up 0.29 percent, or 5.8 points, at 2,003.38. The Hang Seng was up 0.3 percent as of 3:19 pm local time. Chinese shares were higher, the Shanghai composite closed up 0.47 percent, or 14.69 points, at 3,148.02 and the Shenzhen composite ended up 0.659 percent, or 13.626 points, at 2,080.435. On the data front, the Job Openings and Labor Turnover Summary (JOLTS) is due at 10.00 a.m. ET. Companies of note that reported Tuesday include Valeant Pharma and Momo. Oil prices were stable on Tuesday as financial investors and traders were cautiously positioning themselves for a win by Hillary Clinton in the U.S. presidential elections. U.S. West Texas Intermediate (WTI) crude futures were at $44.66, slightly lower from their previous settlement. The contract gained nearly 1.9 percent in the previous session. International Brent crude were down 21 cents at $45.94 per barrel. Gold stuck to a narrow range during Asian hours on Tuesday as investors remained wary of the implications of the outcome of the U.S. presidential election. Spot gold was up 0.3 percent at $1,281.71 an ounce by 7:01 am EDT. The metal touched a low of $1277.70 on Monday. U.S. gold futures were up 0.2 percent at $1,282.30 per ounce.