Dow Jones Industrial Average Futures Point to Lower Start on Election Day

How a Post-Election SPY Sell-Off Might Play Out

by Kirra Fedyszyn

Published on Nov 8, 2016 at 9:16 AM

Dow Jones Industrial Average (DJIA) futures are just below breakeven, pointing to a lower start for stocks after Monday's 371-point rally. Americans will head out to vote today in the highly anticipated presidential election, with the latest polls still showing Hillary Clinton with a slight edge over Donald Trump. Election anxiety could leave trading volumes light, as caution reigns, but traders will be looking ahead to the Labor Department's Job Openings and Labor Turnover Survey (JOLTS), due for release later this morning. Meanwhile, Chicago Fed President Charles Evans said, "If I had even more confidence that we were going to get to 2% [inflation], I would feel better about monetary policy normalization."

Continue reading for more on today's market, including: 

Dow Futures November 8

Futures on the Dow Jones Industrial Average (DJIA) are just 2.6 points below fair value.

5 Things You Need to Know Today
  
  1. The Chicago Board Options Exchange (CBOE) saw 635,221 call contracts traded on Monday, compared to 435,001 put contracts. The resultant single-session equity put/call ratio slipped to 0.68, while the 21-day moving average remained at 0.69.
  2. In a blow to recent option bulls, drugmaker VRX is set to open at a fresh six-year low, down 28% ahead of the bell. The company missed estimates for third-quarter earnings and revenue, and also lowered its full-year forecast. 
  3. Electric car maker Tesla Motors Inc (NASDAQ:TSLA) is edging 0.3% higher in electronic trading following news the company will buy Germany-based Grohmann Engineering for an undisclosed purchase price. The newly created Tesla Grohmann Automation is expected to add 1,000 skilled jobs over two years.
  4. Rental car specialist Hertz Global Holdings Inc (NYSE:HTZ) is getting pounded in pre-market trading, down 40%, and on pace to open at a seven-year low. The company's quarterly per-share earnings came in miles below analyst estimates, and the firm cut its full-year guidance, earning the stock some bearish brokerage attention. HTZ has already been struggling this year, down nearly 37% as of Monday's close.
  5. Chicago Fed President Charles Evans is scheduled to speak again today, and JOLTS data will be released later in the morning. Stepping into the earnings spotlight will be CVS Health (CVS), SeaWorld Entertainment (SEAS), TripAdvisor (TRIP), Vivint Solar (VSLR), and Wayfair (W).

Buzz Stocks Nov 8

Overseas Trading

Asian stocks finished the day mostly higher, as stocks followed their U.S. counterparts north ahead of today's presidential election. China's Shanghai Composite ended 0.5% higher, despite a worse-than-expected drop in exports -- which fell for a seventh straight month in October -- and a sharp decline in foreign exchange reserves last month. Meanwhile, Hong Kong's Hang Seng added 0.5%, while South Korea's Kospi tacked on 0.3%. Japan's Nikkei bucked the bullish bias, ending 0.03% lower.

European stocks are cautiously lower at midday, as investors anxiously await the results of the U.S. presidential election. German industrial output fell more than expected in September, pushing the German DAX down 0.1%. Elsewhere, the French CAC 40 has dropped 0.1%, while London's FTSE 100 is flirting with fractional losses.

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