U.S. equity futures rose in pre-market 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 did not cut rates as expected
overnight. 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 a
stabilization in China as its rationale for holding rates.
- Spanish Prime Minister Mariano Rajoy spoke overnight saying
that 2012 will be the worst year for Spain and that Spain 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
- 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 percent to $1,691.70 per ounce.
Asian shares were mostly lower overnight as weakness from
European and American trading Monday spilled over into Asia. The
Japanese Nikkei Index fell 0.36 percent and the Shanghai
Composite Index fell 0.38 percent while the Hang Seng Index fell
0.28 percent in Hong Kong. In addition, the Korean Kospi rose
1.05 percent and Australian shares rose 0.24 percent following
the hawkish comments from the RBA.
European shares were all higher in early trading as the
eurozone services PMI was released roughly in line with estimates
but did miss slightly. Spain's Ibex Index rose 0.47 percent and
Italy's MIB Index rose 0.64 percent while Greek shares rose 0.75
percent. Also, the German DAX rose 0.77 percent and the French
CAC rose 0.73 percent while U.K. shares rose 0.57 percent.
Commodities were higher heading into election day with
strength seen broadly in energy and metals. WTI Crude futures
rose 0.53 percent to $86.10 per barrel and Brent Crude futures
rose 0.59 percent to $108.37 per barrel. Copper futures rallied
on the positive RBA comments, rising 0.56 percent to $348.95 per
pound. Gold was higher and silver futures rose 0.71 percent 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 percent 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
Stocks moving in the pre-market included:
- Chipotle Mexican Grill (NYSE:
) rose 1.26 percent in pre-market trading following a 1.1
percent gain Monday.
- AIG (NYSE:
) shares rose 0.88 percent as Barron's was positive on the
company, citing that selling is overdone.
- Bank of America (NYSE:
) shares fell 0.21 percent pre-market along with other large
financials ahead of the election.
- Deere and Co. (NYSE:
) shares fell 0.35 percent pre-market despite positive comments
on Seeking Alpha.
There are several notable companies expected to report
earnings Monday, including:
- CVS Caremark (NYSE:
) is expected to report third quarter EPS of $0.84 vs. $0.70 a
- Discovery Communications (NASDAQ:
) is expected to report third quarter EPS of $0.63 vs. $0.59 a
- Dish Network (NASDAQ:
) is expected to report third quarter EPS of $0.55 vs. $0.71 a
- Marathon Oil (NYSE:
) is expected to report third quarter EPS of $0.64 vs. $0.91 a
- News Corp (NASDAQ:
) is expected to report first quarter EPS of $0.38 vs. $0.32 a
- OfficeMax (NYSE:
) is expected to report third quarter EPS of $0.25 vs. $0.25 a
- Vivus (NASDAQ:
) 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 calendar Tuesday, it's election day… Also,
same store sales and the Redbook will shed light on the state of
the U.S. retail economy following Hurricane Sandy. In addition,
the Treasury is set to issue 4-week bills, 3-month notes, and
Good luck and good trading.
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