US STOCKS-Wall St set to open flat as US polls, Fed decision loom large

Phunware

04/11/2024 13:54

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        * 
      Harris leads, Des Moines Register/Mediacom Iowa Poll shows
    

        * 
      Nvidia up on inclusion to the Dow Jones Industrial Average
    

        * 
      Marriott, Constellation Energy fall after results 
    

        * 
      Futures: Dow down 0.04%, S&P 500 up 0.12%, Nasdaq up 0.08%
    

  
 (Updated at 8:30 a.m. ET/1230 GMT)
    By Lisa Pauline Mattackal
       Nov 4 (Reuters) - U.S. stocks were set to open flat on
Monday, as traders stayed away from large bets in an
action-packed week in which Americans will elect a new president
and the Federal Reserve is likely to cut its benchmark policy
rate.
    With a latest poll showing Democratic candidate Kamala
Harris leading in Iowa ahead of a Tuesday vote, the so-called
"Trump trades" lost ground, triggering a retreat in dollar, bond
yields and bitcoin.
    Stocks viewed as bets on Republican candidate Donald Trump's
win were choppy in premarket trading, while a drop in the
benchmark 10-year Treasury yield  US10YT=RR  from its recent
high eased pressure on the broader equity market.  
  
  Trump Media & Technology Group  DJT.O  reversed early losses
to add 1%, while software developer Phunware  PHUN.O  that made
apps for Trump campaign in 2020 fell 3.7%.
    Harris' odds improved on several betting sites. PredictIT
showed contracts betting on a Harris victory at 53 cents versus
52 cents on former president Trump. 
    "This is the biggest event for markets for the year...but we
think it's wisest not to make big (investment) bets," said
Michael Reynolds, vice president, Investment Strategy at
Glenmede. 
    Dow E-minis  1YMcv1  were down 17 points, or 0.04%, S&P 500
E-minis  EScv1  were up 6.75 points, or 0.12%, and Nasdaq 100
E-minis  NQcv1  were up 16.5 points, or 0.08%. 
    The winner of the presidential race might not be known for
days after voting ends on Tuesday and could result in choppy
trading as investors await clarity on the policy implications.
    "Usually post-election volatility subsides once investors
get a sense of the rules of the road, but there's so much
uncertainty right now," Reynolds said. 
    CBOE's VIX measure of expected equity volatility  .VIX  is
trading at 22.38, well above its 30-day moving average of 19.44.
It is, however, still way below the range of 31.8 to 41 it was
trading in the week ahead of the 2020 election. 
    Meanwhile, investors remained largely sure of a 25 basis
point interest-rate cut by the Fed in its November meeting,
whose decision is expected on Thursday. 
    A sharply lower-than-expected October nonfarm payrolls
number on Friday did little to change the bets on the size of
the rate cut. 
    All three major indexes had declined for the week on Friday,
as mixed earnings from technology megacaps led to losses in some
of Wall Street's largest companies. 
    
    Chip heavyweight Nvidia  NVDA.O  jumped 2%, after S&P Dow
Jones Indices said on Friday the company would replace Intel
 INTC.O  in the Dow Jones Industrial Average. Intel shares
dropped 1.5%. 
    Hotel operator Marriott International  MAR.O  lost 2.1%
after cutting its 2024 profit forecast on weak domestic travel
demand in the U.S. and China. 
    Constellation Energy  CEG.O  dropped 7.6% after its results,
while nuclear-powered utility Talen Energy  TLN.O  lost 9% after
regulators rejected an amended pact for an Amazon data center
connected directly to a nuclear power plant in Pennsylvania. 
    On the data front, September U.S. factory orders are due at
10:00 a.m. ET.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
The Trump Trade    https://tmsnrt.rs/3YeC3tB
Magnificent Seven Q3 earnings a mixed bag for equities    https://tmsnrt.rs/4ehJRiH
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Lisa Mattackal and Shashwat Chauhan in Bengaluru;
Editing by Arun Koyyur)
 ((LisaPauline.Mattackal@thomsonreuters.com;))