Stock Futures Down, But Off Lows, As Trump Secures White House

Investors Business Daily ^ | Nov. 8, 2016 3:16 AM ET | ED CARSON

[expat_panama]

Stock futures were down sharply, but partly recovered from prior lows, as Donald Trump pulled off an upset victory over Hillary Clinton, who conceded early Wednesday.

S&P 500 futures were off 2.7% after tumbling as much as 5%, triggering a trading halt. Nasdaq 100 futures fell 3%, and Dow futures were down 2.3%, or 419 points, after plummeting more than 800 points at the lows. Asian markets also sold off, with Japan's Nikkei down more than 5%.

Before votes were counted, most forecasts gave Clinton a two-thirds to 90% chance of victory.

The major market averages rallied Monday and Tuesday on expectations of a Clinton victory...

IBD'S TAKE: While stock futures are plunging, gold futures are soaring with key mining stocks near a turning point. See what stocks are at or near buy points with a 2-week free trial to Leaderboard!

The Mexican peso, which has been trading inversely with Donald Trump's prospects, crashed more than 13% after Monday and Tuesday gains. Gold futures spiked...

Meanwhile, the GOP retained control of the Senate. Along with the House, Republicans will control Congress and the White House in 2017, with the opportunity to fill the Supreme Court's vacancy.

The S&P 500 had fallen for nine straight sessions, the longest such losing streak since 1989=0. The Nasdaq's 9-day slide was its worst since 1984.

Keep a close eye on several big-cap techs that are either at or in near buy points or are on the cusp of some other technical turning point: Apple (AAPL)...

...like many gold miners, tumbled in early October as Fed rate hike prospects and the dollar climbed. But as polls tightened and the Fed seemed a bit less likely to hike, the dollar fell and precious metals and their stocks rallied. Many took key technical levels...

[expat_panama]

A very happy happy morning to all!!!  Right now stock index futures are at -1.8% expecting 47% of share holders to dump and metals futures are +1.1% hoping that the rest are hording.  Me?  I'm sitting back waiting for all the dust to clear.

Reports:

7:00 AM MBA Mortgage Index
10:00 AM Wholesale Inventories
10:30 AM Crude Inventories
 

News:

How to Profit from Donald Trump Victory - Philip van Doorn, MarketWatch
Markets Fall As Upset Reveals Itself - Neil Gough & Landon Thomas, NYT
Wall Street Elite Stunned - Lawrence Delevingne & Suzanne Barlyn, Reuters
The Post-Election Trump Scenario Best for Stocks - Scott Rothbort, MW
Stocks Reacting Badly to Prospect of Pres. Trump - Helaine Olen, Slate
The Valley Panicking About a Trump Presidency - Robert Hackett, Fortune
Why History Frowns on Protectionism - Mark Milke, Toronto Globe & Mail
If Not Free Trade, Then What Will It Be? - Charles Wolf, Weekly Standard
America Has Never Had So Much TV - Drew Harwell, Washington Post
Time to Retire the Fed? Int. w/John Tamny - Bill Walton, Common Ground
It May Be Time to Change Your Adviser - Martin Pelletier, National Post
To Fix Infrastructure, Ask Gov't to Step Aside - Lawrence McQuillan, IBD
The United States' Misplaced Admiration for Europe - Noah Smith, BBW
Taxpayers Are Still Bailing Out Wall Street - Renae Merle, Washington Post

[raybbr]

Look for the FED to start raising rates as soon as the dust settles so they can blame the stalling economy on Trump.

[CincyRichieRich]

I’ll gladly take the hit today.

FXB investing...for sure.

Also, investors on Freep...let’s look for any ways to invest in new media types and companies...any of them public?

E.g., Breitbart, OANN, etc. Also flag manufacturers, making flags ONLY in the US.

[CincyRichieRich]

Look for the FED to start raising rates as soon as the dust settles so they can blame the stalling economy on Trump.
......
Yep, that will be one of the broken china presents 0bama/Jarrett will do between now and Jan 20.

[Karl Spooner]

Serve Obama with an eviction notice, too. Signature required.

[Ken H]

Look for the FED to start raising rates as soon as the dust settles so they can blame the stalling economy on Trump.

Isn't it time we quit worrying about what 'they' will say? Who cares what 'they' say?

'They' just got smashed.

[expat_panama]

I’ll gladly take the hit today.

Enjoy; everyone has their own investment strategy.  If I see a rout I'm dumping.

[expat_panama]

Look for the FED to start raising rates...

That's always been in the cards here and there are a number of reasons to expect a Dec. hike and a Jan. slump --just like last year.

[EBH]

The fake economy is going to be revealed too. Trumps first few months are going to be difficult. There are a number of reasons for this and Trump needs to get out ahead of this in the next day or two.

The base understands there is a major reset going to take place, but clearly 50% of the country has no idea of the smoke and mirrors events that have been taking place.

All of Hillary’s back room deals are going to come calling, the currency war that has been going on will escalate, President Trump is at the helm and very few real men in the country could navigate us through the storm we are headed into.

[WhoisAlanGreenspan?]

This being a new day, and a new reality. Thank you Mr Trump!

I started poking around the issue of free trade and noticed part of the logic mentioned (from; Why History Frowns on Protectionism)"Here’s the bigger picture for protectionists: In the past 50 years,... more than 600 million people worldwide were lifted out of the most extreme form of poverty... in part because of an increasingly free-trading world, not in spite of that development." is missing from Trump's Trade Policy.

Of course that's a nice thing to do for half a billion non-Americans, but given the choice we want to; Negotiate fair trade deals that create American jobs, increase American wages, and reduce America's trade deficit.

[palmer]

As they should. There are some differences with 1980, but the Fed needs to get religious and rates soon so we can have a lasting recovery after the readjustment recession.

[palmer]

The fake economy is going to be revealed too. Trumps first few months are going to be difficult.

It's already been revealed in the rise Monday and futures drop yesterday. That economy is "green", it is Wall St speculation, it is politics based on high corporate taxes with money stashed abroad. All that changes now and we can finally recover.

We will chop and split the green economy into stove-sided pieces and burn it to stay warm in the brief economic winter. We will end the speculation and replace it will long term investment in America. We will repatriate profits and create vast new profits with low taxes.

Mostly we will curtail the power of Washington politicians by ending their ability to sell corporate tax breaks.

[palmer]

If I see a rout I'm dumping

Some big banks might go under. That will be a good thing in the long run but that will cause a rout in the short run.

[ClearCase_guy]

+1

[expat_panama]

Some big banks might go under.

--and what we know for sure is we're all in a new game now and nobody knows which game it we're playing.  Here's what the futures traders say (from here):

Indices		Russell 2000 Mini
-1.89%		-1.67%
		Dow Indu 30 E-Mini
		-1.72%
		S&P 500 E-Mini
		-1.84%
		S&P Midcap E-Mini
		-1.97%
		Nasdaq 100 E-Mini
		-2.25%
Metals		High Grade Copper
1.08%		2.63%
		Gold
		1.96%
		Silver
		1.60%
		Palladium
		-0.23%
		Platinum
		-0.55%

From what I can gather this will put us back down to the support levels we had last week.   Fine by me.

[repentant_pundit]

Look for the FED to start raising rates as soon as the dust settles so they can blame the stalling economy on Trump.

Good point. But since we learned 0baMao joined hildebeast in mishandling classified documents on email, maybe he'll tell Old Yellen to be nice to Trump....in hopes of avoiding any personal legal consequences in 2017.

.

[EBH]

Exactly, it won’t be the crash of the century, under Trump’s leadership we will truly have a recovery.

[BipolarBob]

I see all the stocks I should have bought yesterday and sigh. But I did buy gold and it is up nicely. IBB is one I’m watching because it could rally.

[abb]

OK, the dow is even to up. How can that be? “They” said it would crash.