Stocks head for lower open after sharp rally

[kaydee457 13]

NEW YORK – Wall Street prepared to cash in some of the previous session's big gains Wednesday, focusing on the weak economy after Barack Obama's election to the White House.

Tuesday's election results were not surprising to the market, except perhaps in terms of the wide margin by which Obama beat his opponent John McCain. Rather, investors appeared to be gauging the economy's troubles again, and acknowledging the fact that stocks have recovered so sharply despite dismal data.

More grim readings are anticipated this week. After revealing the worst contraction in manufacturing sector activity in 26 years, the Institute for Supply Management is expected at 10 a.m. Eastern time Wednesday to report that the service sector shrank in October after expanding marginally in the previous month.

And later this week, the Labor Department releases its highly anticipated report on October job losses, which are predicted to be massive following a freeze-up in the credit markets that crimped many companies' ability to get financing. Economists on average expect a 200,000 drop in payrolls, according to Thomson/IFR.

Ahead of the market's open, Dow Jones industrial futures fell 87, or 0.86 percent, to 9,500. Standard & Poor's 500 index futures fell 11.00, or 1.10 percent, to 989.30, while Nasdaq 100 index futures fell 14.00, or 1.01 percent, to 1,366.50.

Stocks soared Tuesday, with many investors believing that the worst of this year's financial crisis — at least at the systemic level — is behind them. Some on Wall Street are preparing for a traditional year-end rally despite the economy's problems.

The S&P 500, which on Tuesday closed above the 1,000 mark for the first time since Oct. 13, has climbed 18.3 percent in the past six sessions.

Obama, who received 349 electoral votes, will face an enormous budget deficit when he is sworn in Jan. 20. The current administration Wednesday will detail its plans to borrow a record $550 billion in the final three months of the year for the financial rescue efforts made in response to the global crisis. A Treasury Department official Monday projected the government would need to borrow an additional $368 billion in the first quarter of 2009.

The credit markets, while improved, remain far from healthy.

On Tuesday, banks continued to ratchet down the rates they charge one another for borrowing, but the key interbank lending rate — the London Interbank Offered Rate, or Libor — remains well above the Federal Reserve's target interest rate of 1.00 percent. Libor for three-month dollar loans fell to 2.51 percent Wednesday from 2.71 percent Tuesday.

And the bid for Treasury bills remains high. The three-month bill, considered one of the safest assets around, rose only marginally to 0.49 percent early Wednesday from 0.48 percent late Tuesday. A low yield indicates high demand.

On Wednesday, the dollar traded mixed against most other major currencies.

Light, sweet crude fell $1.59 to $68.94 a barrel in premarket electronic trading on the New York Mercantile Exchange.

In midday trading in Europe, Britain's FTSE 100 fell 1.32 percent, Germany's DAX index fell 1.09 percent, and France's CAC-40 fell 1.99 percent.

[Hilarious Clinton 452]

Let the punishment of the successful begin.

[mawilson 2,133]

Or it could just be the end of the recent bear market rally within a strong downward trend after a brutal sell-off.

[Dr. Obvious 49]

And McCain was going to save the economy how? Really, I doubt the election has much to do with this. The forecast was awful regardless of who won.

[akdiver 3]

I told my sweetie last night, "I bet the stock market goes down tomorrow."

Ta-da!!

[kaydee457 13]

Anyone that believes that the severe tumble of the world markets today wasn't due to an Obama win is delusional....

A market rally has occurred every time following every election except for 2000, Bush election, and Kennedy election.

Most created around 10~15% .........

Obama's rally? Minus 5 % and more tomorrow.......

[mawilson 2,133]

Anyone that believes that the severe tumble of the world markets today wasn't due to an Obama win is delusional....

And if the market has another rally tomorrow? It would be due to what?

I think you're delusional if you believe that Wall Street is obsessing over the

presidential race the way you have been. Wall Street doesn't care in the slightest.

[kaydee457 13]

Anyone that believes that the severe tumble of the world markets today wasn't due to an Obama win is delusional....

And if the market has another rally tomorrow? It would be due to what?

I think you're delusional if you believe that Wall Street is obsessing over the

presidential race the way you have been. Wall Street doesn't care in the slightest.

Oh, and your infinite wisdom comes from where?

Wall street now is faced with the most anti-business lefty that's come along, literally, in years.....

And a rally tomorrow would be due to speculation over more handouts; a mainstay of an Obama/democratic congress predicate.

Next...another stimulus package. Why not? They can blame everything on Bush!

[Amby 490]

Anyone that believes that the severe tumble of the world markets today wasn't due to an Obama win is delusional....

And if the market has another rally tomorrow? It would be due to what?

I think you're delusional if you believe that Wall Street is obsessing over the

presidential race the way you have been. Wall Street doesn't care in the slightest.

Oh, and your infinite wisdom comes from where?

Wall street now is faced with the most anti-business lefty that's come along, literally, in years.....

And a rally tomorrow would be due to speculation over more handouts; a mainstay of an Obama/democratic congress predicate.

Next...another stimulus package. Why not? They can blame everything on Bush!

I could be wrong but I think it's actually his job to have that wisdom

[HAL 9000 96]

Oh noes! American businesses will flee their own country oh nooooooes!! A communist has taken over!!

[kaydee457 13]

Anyone that believes that the severe tumble of the world markets today wasn't due to an Obama win is delusional....

And if the market has another rally tomorrow? It would be due to what?

I think you're delusional if you believe that Wall Street is obsessing over the

presidential race the way you have been. Wall Street doesn't care in the slightest.

Oh, and your infinite wisdom comes from where?

Wall street now is faced with the most anti-business lefty that's come along, literally, in years.....

And a rally tomorrow would be due to speculation over more handouts; a mainstay of an Obama/democratic congress predicate.

Next...another stimulus package. Why not? They can blame everything on Bush!

I could be wrong but I think it's actually his job to have that wisdom

I too worked on Wall St. many years ago....He hasn't any more "wisdom" than any other dunce in this forum....

I worked for Thomson & McKinnon, a brokerage firm and The Stock Clearing Corporation before my commision in the military.

I have the wisdom that age brings to the table......

[Amby 490]

Kaydee I'm not here to get into an argument with you. I just said I think it's his job. If you want an argument, find someone else because I'm not interested.

[mawilson 2,133]

I worked for Thomson & McKinnon, a brokerage firm and The Stock Clearing Corporation before my commision in the military.

I have the wisdom that age brings to the table......

Must be the same wisdom that bankrupted Thomson McKinnon in 1990.

[HAL 9000 96]

I worked for Thomson & McKinnon, a brokerage firm and The Stock Clearing Corporation before my commision in the military.

I have the wisdom that age brings to the table......

Must be the same wisdom that bankrupted Thomson McKinnon in 1990.

[mawilson 2,133]

Wall street now is faced with the most anti-business lefty that's come along, literally, in years.....

Obama is no more "anti-business leftie" or "socialist" than Bill Clinton was. All he proposed is to

restore the tax code to what it was during the Clinton years. Was America socialist then?