Stock Futures Decline as Obama Defeats Romney for President

Tuesday, 06 Nov 2012 11:57 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

U.S. stock futures fell, following a two-day advance for the Standard & Poor’s 500 Index, as President Barack Obama won re-election.

S&P 500 futures expiring in December dropped 0.6 percent to 1,417.2 at 1:26 p.m. Tokyo time. The benchmark index rallied 1 percent over the previous two sessions. Dow Jones Industrial Average futures lost 52 points, or 0.4 percent, to 13,149.

“While the elections will determine who will be doing the negotiating, we’ll still have issues such as the fiscal cliff to deal with.,” said Stephen Wood, the New York-based chief market strategist for North America for Russell Investments, which oversees $152 billion.

Editor's Note: Prepare for Financial Pearl Harbor -- See Surprising Video With Steve Forbes

U.S. voters had to decide between giving President Obama another four years or replacing him with Republican challenger Mitt Romney. Television projections showed Obama winning the electoral votes needed to secure a second term in the White House.

President Obama need to address a so-called fiscal cliff of more than $600 billion in tax increases and spending cuts that take effect in 2013 unless Congress can reach a budget compromise.

The options market is implying about a 2 percent move up or down in the S&P 500 over the next four trading days, according to Susquehanna Financial Group LLLP’s head of derivatives strategy Trevor Mottl. That’s equivalent to an even-odds range of 1,389 to 1,445 for the close on Nov. 9 based on options prices as of Nov. 5, he wrote in a note to clients.

Day After

While the S&P 500 has risen an average 0.9 percent on presidential election days since 1984, the index had positive returns in only two of seven times on the following day, according to data compiled by Bespoke Investment Group. On average, the S&P 500 has declined 0.9 percent on the day after the polls, the data showed.

Stocks have on average rallied 3 percent in the two months following Election Day after a tight race, according to Thomas J. Lee, the chief U.S. equity strategist at JPMorgan Chase & Co., who cited historical data from the last five elections with close contests. The equity market gains even more if the challenger wins, he said.

The S&P 500 climbed 15 percent from a June low to a four- year high on Sept. 14 as central banks around the world stepped up stimulus to boost the economy. The benchmark gauge for American equities has surged 14 percent this year.

Editor's Note: Prepare for Financial Pearl Harbor -- See Surprising Video With Steve Forbes

© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

WSJ: Republicans Could Win Up to 10 Senate Seats in November

Monday, 28 Jul 2014 07:24 AM

Republicans are running competitively for 10 Senate seats now held by Democrats, heightening chances for the party to ca . . .

Cornyn: House to Pass 'Skinnied Down' Bill to Aid Border Crisis

Monday, 28 Jul 2014 07:14 AM

House Republicans intend to pass skinnied down emergency funding legislation this week before the August recess to add . . .

Justice Department Seeks to Protect Files of Anti-Iran Group

Monday, 28 Jul 2014 07:06 AM

A federal lawsuit by Greek shipping magnate Victor Restis is on pause while the Justice Department tries to prevent him  . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved