US STOCKS-Wall St struggles for direction as uncertainty around U.S. election grows

Phunware

04/11/2024 15:29

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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 
    

        * 
      Indexes: Dow down 0.26%, S&P 500 up 0.04%, Nasdaq down
0.11%
    

  
 (Updated at 10:01 a.m. ET/1401 GMT)
    By Lisa Pauline Mattackal
       Nov 4 (Reuters) - U.S. stock indexes were trading flat
to lower on Monday, as investors braced for a pivotal week for
global markets in which Americans will elect a new president and
the Federal Reserve is likely to cut its benchmark policy rate.
    Caution prevailed as the winner of the tightly contested
election between Democratic candidate Kamala Harris and
Republican Donald Trump might not be known for days after the
voting ends on Tuesday. 
    Some of the so-called "Trump trades" lost ground after a
recent poll showed Harris leading in Iowa, triggering a retreat
in dollar, bond yields and bitcoin. 
    Harris' odds have improved on several betting sites, an
election indicator that many market participants keep a close
watch. 
    "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. 
    Choppy trading is likely in the wait for the election
outcome and due to a lack of clarity on the policy implications.
  
    "We're bracing for volatility and maybe looking for some
opportunities around the edges." 
    CBOE's VIX measure of expected equity volatility  .VIX  is
trading at 22.39, well above its 30-day moving average of 19.44.
It is, however, still significantly below the range of 31.8 to
41 it was trading at in the week ahead of the 2020 election. 
    Stocks viewed as bets on a Trump win slipped. Trump Media &
Technology Group  DJT.O  was last down 2% and software developer
Phunware  PHUN.O  that designed an app for Trump's campaign in
2020 fell 8.3%.

  
    Investors, meanwhile, remained largely sure of a 25 basis
point interest-rate cut by the Fed in its November meeting,
whose decision is expected on Thursday. 
    The Dow Jones Industrial Average  .DJI  fell 108.63 points,
or 0.26%, to 41,943.56, the S&P 500  .SPX  gained 2.54 points,
or 0.04%, to 5,731.34 and the Nasdaq Composite  .IXIC  lost
20.00 points, or 0.11%, to 18,219.92. 
    An index of energy stocks  .SPNY  rose 1.6% as oil prices
rose more than 2% after OPEC+ delayed plans to increase output.
 O/R  
    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. 
    Most megacap stocks lost ground on Monday, with Tesla
 TSLA.O  dropping 2.4% as the EV maker's China-made vehicle
sales fell in October. 
    
    However, chip heavyweight Nvidia  NVDA.O  rose 1.1%, after
S&P Dow Jones Indices said on Friday the company would replace
Intel  INTC.O  in the Dow Jones Industrial Average. Intel shares
tumbled 3%. 
    Hotel operator Marriott International  MAR.O  lost 2% after
cutting its 2024 profit forecast on weak domestic travel demand
in the U.S. and China. 
    Constellation Energy  CEG.O  was the biggest loser on the
S&P 500, slumping 12.4% after its results. Its losses dragged
the Utilities sector  .SPLRCU . 
    On the data front, U.S. factory orders declined 0.5% in
September on a monthly basis, as expected. 
    Advancing issues outnumbered decliners by a 2.26-to-1 ratio
on the NYSE, while declining issues outnumbered advancers by a
1.03-to-1 ratio on the Nasdaq.  
    The S&P 500 posted seven new 52-week highs and four new lows
while the Nasdaq Composite recorded 32 new highs and 83 new
lows.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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;))