Stock market edges up a day ahead of election
NEW YORK — On the day before the presidential election, stock indexes managed slight gains in thin trading.
After wavering between small gains and losses, the Dow Jones industrial average ended with a gain of 19.28 points to start the week, closing at 13,112.44 on Monday.
Uncertainty surrounding the election will prevent most investors from making any big moves before it's over, said Randy Frederick, managing director of active trading and derivatives at the brokerage Charles Schwab.
National polls show President Obama and Mitt Romney locked in a tight race. The two candidates are spending the final days of the campaign holding rallies in Ohio and other states considered crucial to winning the White House.
“I honestly think the markets are going to sit here and mark time,” Frederick said. “The markets have a tendency to trade sideways before big news events, and nothing is bigger than a presidential election.”
Frederick said he believes that no matter who wins, the stock market will likely surge once it's over for the sole reason that investors will know the name of the next president.
But that's assuming there's a winner by Wednesday. If the election comes down to a thin margin in a swing state, the outcome could be delayed for days.
In other Monday trading, the Standard & Poor's 500 index rose 3.06 points to 1,417.26, while the Nasdaq composite index climbed 17 points to 2,999.66. Just 2.9 billion shares were traded on the New York Stock Exchange, well below the recent average.
Apple rose $7.82 to $584.62. The company said it sold 3 million iPads in the three days after introducing a smaller version, the Mini. Tim Cook, Apple's CEO, said the iPad Mini is “practically sold out.”
In the market for government debt, the yield on the 10-year Treasury note fell to 1.68 percent, down from 1.72 percent late Friday.
There was only one major economic report, a measure of activity among so-called service companies, which employ about 90 percent of the American workforce. The Institute for Supply Management's service-sector index showed growth in October, but at a slower pace than in September, and just short of what economists expected.
In Europe, renewed focus on Greece's problems combined with uncertainty over the U.S. election to push markets lower. Germany's benchmark index, the DAX, dropped 0.5 percent, and the CAC-40 in France fell 1.3 percent.
“With the race so close, investors are understandably risk-averse,” said James Hughes, chief market analyst at Alpari, a London brokerage.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Steelers wrap lackluster preseason with loss to Panthers
- Steelers notebook: Safety Mitchell faces former team, hurts leg
- Young adults drive home rental trend in Western Pennsylvania
- Penguins confident Pouliot will be healthy, ready for camp
- Pitt senior Weatherspoon’s work ethic second to none
- Pirates starting pitcher Cole growing in his 1st full major-league season
- Preseason valuable for Steelers’ offensive line
- WPIAL teams value hard-to-come-by nonconference games in Week 1
- Not enough primary-care doctors? Try Missouri’s plan
- DEP releases details of cases of drinking well contamination from drilling
- August Wilson Center’s financial woes leave little guys in a lurch