US STOCKS-Wall St struggles to gain as uncertainty around U.S. election grows

Phunware

04/11/2024 17:15

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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 
    

        * 
      Russell 2000 outperforms, benefiting from lower bond
yields
    

        * 
      Indexes down: Dow 0.95%, S&P 500 0.48%, Nasdaq 0.41%
    

  
 (Updated at 11:55 a.m. ET/1555 GMT)
    By Lisa Pauline Mattackal
       Nov 4 (Reuters) - U.S. stock indexes slipped in choppy
trading 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. 
    Stocks turned lower despite a drop in the yield for the
benchmark U.S. 10-year Treasury, with volatile trading expected
in the run-up to the election outcome as investors await clarity
on the policy implications.
    "It's a bit of calm before the storm this week ... the bond
market may be fading a little bit from the highs last week on
some of the new poll numbers coming out, suggesting a tighter
race," said Adam Turnquist, chief technical strategist for LPL
Financial. 
    "The playbooks of the 2016 and 2020 (elections) might be
thrown out the window... what dictates the level of volatility
will be when we get results." 
    CBOE's VIX measure of expected equity volatility  .VIX  is
trading at 22.54, well above its 30-day moving average of 19.45.
    
    Stocks viewed as bets on a Trump win also jumped between
losses and gains. Trump Media & Technology Group  DJT.O  was
last up 1.4%. 
    Lower bond yields boosted rate-sensitive small-cap stocks,
with the Russell 2000  .RUT  gaining 0.5%. 

  

    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 397.83 points,
or 0.95%, to 41,654.14, the S&P 500  .SPX  lost 27.52 points, or
0.48%, to 5,701.28 and the Nasdaq Composite  .IXIC  lost 73.98
points, or 0.41%, to 18,165.94. 
    An index of energy stocks  .SPNY  rose 1.4% as oil prices
rose after OPEC+ delayed plans to increase output.  O/R  
    Most megacap stocks lost ground, with Tesla  TSLA.O 
dropping 1.8% as the EV maker's China-made vehicle sales fell in
October. 
    However, chip heavyweight Nvidia  NVDA.O  rose 1.6%, after
S&P Dow Jones Indices said on Friday the company would replace
Intel  INTC.O  in the Dow Jones Industrial Average. Intel's 
4.3% slide weighed on the Dow.  
    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 11.1% after its results. Its losses dragged
the Utilities sector  .SPLRCU . 
    Advancing issues outnumbered decliners by a 1.64-to-1 ratio
on the NYSE and by a 1.1-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 56 new highs and 100 new
lows.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
The Trump Trade    https://tmsnrt.rs/3YeC3tB
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 (Reporting by Lisa Mattackal and Shashwat Chauhan in Bengaluru;
Editing by Arun Koyyur)
 ((LisaPauline.Mattackal@thomsonreuters.com;))