US STOCKS-Wall St slips as uncertainty surrounds U.S. election

Phunware

04/11/2024 21:18

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

        * 
      Nvidia up on inclusion to the Dow Jones Industrial Average
    

        * 
      Russell 2000 outperforms, benefiting from lower bond
yields
    

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      Indexes down: Dow 0.61%, S&P 500 0.28%, Nasdaq 0.33%
    

  
 (Updated at 4:03 p.m. ET/ 2003 GMT)
    By Chuck Mikolajczak
       NEW YORK, Nov 4 (Reuters) - U.S. stocks closed slightly
lower after a choppy session on Monday, as investors prepared
for a crucial week in which Americans will elect a new president
and the Federal Reserve will announce its policy statement.
    Presidential candidates Donald Trump and Kamala Harris both
scrambled for an edge in the last full day of a race that polls
show as extremely close. It could take days to determine the
victor. 
    Some of the so-called "Trump trades" unwound after a recent
poll showed Harris, the Democratic vice president, leading in
Iowa, sparking a drop in the U.S. dollar  USD= , Treasury yields
 US10YT=RR  and bitcoin  BTC= . Trump Media & Technology Group
 DJT.O  closed up 12.37%, bouncing back from early losses of
nearly 6%. 
    In light of the Iowa poll, Harris' odds against the
Republican former president improved on several betting sites,
which many market participants eye as election indicators. 
    "Since we're going to take until Thursday or so, at least,
to figure out who won, unfortunately this is going to be a
pretty volatile week," said Sam Stovall, chief investment
strategist at CFRA Research in New York. 
        "Earnings are going well, the Fed is still likely to cut
interest rates, the only true uncertainty is the election, and
hopefully that will be finalized sooner rather than later so
investors can go back to investing."
  
        The Dow Jones Industrial Average  .DJI  fell 257.59
points, or 0.61%, to 41,794.60, the S&P 500  .SPX  lost 16.11
points, or 0.28%, to 5,712.69 and the Nasdaq Composite  .IXIC 
lost 59.93 points, or 0.33%, to 18,179.98. 
    The benchmark 10-year Treasury note was last off 6.4 basis
points (bps) at 4.299%, after initially dropping as much as 10
bps. Volatile trading was expected until the election is decided
and investors are clearer on government policy. The 10-year
yield had fallen for five straight months before surging about 
48 bps in October. 
    The Russell 2000  .RUT  rose 0.4% as falling yields
supported small cap stocks, seen as more likely to benefit from
lower rates. 
    CBOE's Volatility Index,  .VIX  also known as Wall Street's
"Fear Gauge," inched up to 21.94 and remained above its
long-term average of 19.46 as it hovered close to a near-two
month high hit last week of 23.42.     
     

  

    Investors were largely pricing in a Fed interest rate cut of
25 bps at its policy announcement on Thursday, with CME's
FedWatch Tool showing markets pricing in a 98% chance of a cut,
with only a 2% chance the central bank keeps rates steady.  
    The biggest gainer among the 11 major S&P sectors was energy
 .SPNY , up 1.87% as oil prices climbed after OPEC+ decided to
delay plans for an output increase.  
    Chip heavyweight Nvidia  NVDA.O  advanced 0.48%. On Friday,
S&P Dow Jones Indices said the company would replace Intel
 INTC.O  in the Dow Jones Industrial Average. Intel shares
slipped 2.93% to weigh on the Dow.  
    Hotel operator Marriott International  MAR.O  lost 1.59%
after cutting its 2024 profit forecast on weak domestic travel
demand in the U.S. and China. 
    Constellation Energy  CEG.O  was the worst performer on the
S&P 500, tumbling 12.46%. On Friday, the Federal Energy
Regulatory Commission rejected an agreement to increase the
power capacity of an Amazon data center connected directly to
Talen Energy's nuclear power plant in Pennsylvania. The decision
weighed on the utilities sector  .SPLRCU , which fell 1.21%.
        Advancing issues outnumbered decliners by a 1.37-to-1
ratio on the NYSE and by a 1.01-to-1 ratio on the Nasdaq.
  
        The S&P 500 posted 10 new 52-week highs and four new
lows while the Nasdaq Composite recorded 66 new highs and 128
new lows. 
  
        Volume on U.S. exchanges was 11.31 billion shares,
compared with the 11.71 billion average for the full session
over the last 20 trading days.
  

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 (Reporting by Chuck Mikolajczak; additional reporting by Lisa
Mattackal and Shashwat Chauhan in Bengaluru; Editing by David
Gregorio)
 ((charles.mikolajczak@tr.com; @ChuckMik;))