Posted on 11/02/2004 12:24:11 PM PST by Shermy
NEW YORK (CBS.MW) - U.S. stocks fell from their highs Tuesday amid reports that John Kerry is putting in a strong early showing at the polls.
"The only thing I can see is that the Drudge Report shows the preliminary exit polls showing Kerry within striking distance," said Jay Suskind, director of trading of Ryan, Beck & Co.
Miller Tabak equity strategist Peter Boockvar said the fall was on nothing in particular, but also mentioned the Drudge Report showing that Kerry was running more competitively than initially thought.
The Dow Jones Industrial Average (^DJI - News) was last up 12 points at 10,067, paring early gains which saw the benchmark index climb as high as 10,132.99.
Within the Dow, Verizon (NYSE:VZ - News) was a notable gainer, up 1.6 percent, after the telecom operator and Nextel Communications (NasdaqNM:NXTL - News) agreed to resolve their legal disputes. Nextel shares were up 4 percent.
On a negative note, Merck (NYSE:MRK - News) shares hit an 8 1/2 year low on concern over its exposure to lawsuits following a media report suggesting it downplayed the health risks of its recently-withdrawn Vioxx arthritis drug.
The stock was last down 4.3 percent. Since it pulled Vioxx off the market on September 30, Merck shares have lost 40 percent of their value.
The Nasdaq Composite Index (NasdaqSC:^IXIC - News) was last up 7 points, at 1,987, after climbing above 2,000 for the first time in four months earlier in the session.
The Standard & Poor's 500 Index (CBOE:^SPX - News) climbed 2.60 points to 1,133.14.
Today's gains reflect some relief that the U.S presidential election is nearly over.
"There is election exhaustion," said John Caldwell, investment strategist at McDonald Financial Group. "If we know who is the president-elect tomorrow morning, this market has some underlying strength because the fundamentals have been solid.
"The economic data has been good but not spectacular, but can support moderately higher stock prices."
Over at Cantor Fitzgerald, U.S. Market Strategist Marc Pado offered similar sentiment.
"Most investors just want to see this election decided tonight," said Pado. "There is a fear that the market will see selling if it looks like we are headed into the courts for a decision."
According to the Stock Trader's Almanac, November is the best month for stocks when incumbent presidents are ousted and second worst when they win.
On the data front, layoff announcements fell 5.6 percent in October, outplacement firm Challenger Grey & Christmas said in its monthly survey.
Despite the decline, layoffs remained above 100,000 for the second straight month, for the first time since January-February 2003.
"The job market appears to be stuck in the mud. Every time it looks as if things are going to rebound for the nation's workers, a series of reports deflates the optimism," said John Challenger, chairman of the firm, said in a statement. Oil holds at one-month lows
Crude futures hovered around $50 a barrel as traders mulled the implications of the U.S presidential election on the nation's Strategic Petroleum Reserve, while awaiting fresh weekly domestic inventories data due out Wednesday.
Crude for December delivery was last down 8 cents at $50.05 a barrel in morning trading in New York after sliding more than 3 percent Monday to close at a one-month low.
The dollar edged up against the euro and was steady against the yen, although movements were limited as currency traders, like their counterparts in other markets, refrained from taking positions ahead of the election.
Gold futures closed under $421 an ounce for the first time in two weeks as traders awaited the outcome of the presidential election and its effect on trading in the U.S. dollar.
December gold ended down $7.40, or 1.7 percent at $420.80 on Nymex.
On the bond market, Treasurys traded lower. The 10-year benchmark note was off 2/32 at 101 10/32. Its yield (CBOE:^TNX - News) stood at 4.09 percent.
Turning back to the broader market, advancers outpaced decliners by more than 2 to 1 on the New York Stock Exchange, and by an 18 to 11 score on the Nasdaq.
Volume was 927 million on the Big Board, and 1.1 billion on the Nasdaq. Tuesday November 2, 1:14 pm MT
Why anyone would release data when its skewed nearly 3/2 out of balance in its sampling, is beyond me!!! This is rediculous!!!
I'm sorry, but the media needs to STFU.
Whatya expect from SeeBS? The truth?
Our MSM is so reckless and irresponsible.
LOL! Drudge is as powerful (almost) as Soros!
"Striking distance" is just nice talk. Every politician running today is withing "striking distance".
Well, maybe not Keyes...
CBS - the home of Dan Rather - like, they have any credibility.
Drudge is being an a44hat
Well, what a surprise! Who would have thought that the idea of Kerry winning would cost investors millions of dollars in less than an hour? (sarcasm off)
Market traders (not investors) are like herds of cattle, easily spooked, and prone to wild swings in mood. IGNORE THEM!!
I sent Drudge a piece of my mind, give him hell.
I guess Kerry would be horrible for our economy, regardless about the worthless exit polls.
Kind of telling. The stock market falls when Kerry is thought to be ahead in exit polls. Imagine the crash if he would win.
Referring to what, exactly?
I was wondering why the indices took a dump in the last hour, and this article helps fill in the info gap.
Umm... So that means that the market DOES NOT LIKE THE THOUGHT OF KERRY IN THE WHITE HOUSE!!!!
Hello? Undecided voters? Hello?
"..mentioned the Drudge Report showing that Kerry was running more competitively than initially thought."
So Freepers weren't the only ones thinking Kerry was running behind. This was a 'rat move.
stock holders are looking to hurt Drudge now for this mess LOL.
"Striking distance" is just nice talk. Every politician running today is withing "striking distance".
Well, maybe not Keyes...
OUCH!!! LOL
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