Futures rise on Election Day
Investors, traders are bound to follow the extremely tight presidential race as the day unfolds.
U.S. equity futures rose in premarket trading on Election Day. Heading into the vote, the candidates are in a statistical dead heat as the margin of error on all of the tracking polls is generally wider than the difference in the surveys; thus, this is one of the closest races in history.
In other news around the markets, the Royal Bank of Australia kept rates unchanged. Economists surveyed by Bloomberg had expected a cut of 25 basis points following a cut last month also of 25 basis points. The bank noted higher than expected inflation and stabilization in China as its rationale for holding rates.
Spanish Prime Minister Mariano Rajoy spoke, saying that 2012 will be the worst year for Spain and that the country would only ask for a bailout if borrowing costs rose markedly. The statements came as the Spanish services PMI contracted less than expected in October.
The Greek austerity bill has reached the Greek parliament and now has to be approved by politicians before the Troika can release more bailout funds. Speculation has been rising that the parliament will not approve the bill and also fears have risen that a Greek court could rule some of the labor measures unconstitutional. Without the bailout cash, Greece could default.
- S&P 500 futures rose 4.2 points to 1,416.20.
- The EUR/USD was flat at 1.2795.
- Spanish 10-year government bond yields fell to 5.706%.
- Italian 10-year government bond yields fell to 4.947%.
- Gold futures rose 0.5% to $1,691.70 per ounce.
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Commodities were higher heading into election day with strength seen broadly in energy and metals. WTI crude futures rose 0.53% to $86.10 per barrel and Brent crude futures rose 0.59% to $108.37 per barrel. Copper futures rallied on the positive RBA comments, rising 0.56% to $348.95 per pound. Gold was higher and silver futures rose 0.71% to $31.35 per ounce.
Currency markets were relatively quiet overnight save for the Aussie dollar, which saw noted strength following the RBA decision. The EUR/USD was flat at 1.2795 and the dollar fell slightly against the yen to 80.18. Overall, the Dollar Index fell 0.07% on weakness against the yen and the Canadian dollar. In addition, the Aussie dollar was notably strong overnight rising markedly against the euro, the U.S. dollar, and the yen.
- Chipotle Mexican Grill (CMG) rose 1.26% in premarket trading following a 1.1% gain Monday.
- AIG (AIG) shares rose 0.88% as Barron's was positive on the company, citing that selling is overdone.
- Bank of America (BAC) shares fell 0.21% premarket along with other large financials ahead of the election.
- Deere and Co. (DE) shares fell 0.35% premarket despite positive comments on Seeking Alpha.
- CVS Caremark (CVS) is expected to report third quarter earnings per share of $0.84 vs. $0.70 a year ago.
- Discovery Communications (DISCA) is expected to report third quarter earnings per share of $0.63 vs. $0.59 a year ago.
- Dish Network (DISH) is expected to report third quarter earnings per share of $0.55 vs. $0.71 a year ago.
- Marathon Oil (MRO) is expected to report third quarter earnings per share of $0.64 vs. $0.91 a year ago.
- News Corp (NWSA) is expected to report first quarter earnings per share of $0.38 vs. $0.32 a year ago.
- OfficeMax (OMX) is expected to report third quarter earnings per share of $0.25 vs. $0.25 a year ago.
- Vivus (VVUS) is expected to report a third quarter loss $0.31 per share vs. a loss of $0.10 per share a year ago.
On the economic this election day Tuesday are same-store sales and the Redbook. Both will shed light on the state of the U.S. economy and retail following Hurricane Sandy. In addition, the Treasury is set to issue four-week bills, three-month notes, and STRIPS.
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i think we are all in agreement on those points:
1. you cannot TAX the 47% who already pay a large tax burden and spend 100% of the remainder on consumption with the profits flowing back to the 53%
2. you cannot BORROW to support huge military, ineffective old healthcare systems, ground-troop invasions, and a tax welfare system for the big corporations and the wealthy
3. you cannot SPEND on big government and entitlement programs so we must REMOVE the conservative tea party roadblock in the House
4. you cannot PRINT your way to prosperity so we need to again allow fiscal policy to be made and legislated by removing the conservative roadblock and party of no, no , no, no ....
Remember that when you vote today to Move America Forward and not backwards into the abysmal failed policy of the past ..... there is still room on the bus, even for mg .......
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The idea of US crude being a shelter from turmoil abroad may not be as far fetched as it seems.
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