Wall Street set to rally
at open after FBI clears Clinton
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[November 07, 2016]
By Yashaswini Swamynathan
(Reuters) -
Wall
Street was poised to rally at the open on Monday, after a nine-day
losing streak and a day before the U.S. presidential election, as the
FBI said Democrat nominee Hillary Clinton would not face criminal
charges related to her email practices.
The FBI set shockwaves through the presidential race late last month
when it said it would review newly found emails sent by Clinton using a
private server during her tenure as secretary of state.
The Bureau said on Sunday that its review gave it no reason to change
its July finding that Clinton was not guilty of criminal wrongdoing.
The news lifted the cloud over Clinton's campaign, with at least three
polls showing she was in the lead over Republican Donald Trump.
The latest ABC News/Washington Post poll showed 47 percent of 1,763
likely U.S. voters backing Clinton and 43 percent supporting Trump. The
poll has a margin of error of plus or minus 2.5 percentage points.
Investors have tended to see Clinton as a more status quo candidate and
expect her victory to clear the path for a U.S. interest rate hike next
month. On the other hand, Trump's stance on foreign policy, trade and
immigration has unnerved the market.
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Markets across the globe rose following the latest announcement from the
FBI. The CBOE Volatility index <.VIX>, dubbed Wall Street's "fear
gauge", was down nearly 12 percent, on pace for its biggest one-day fall
since Sept. 21.
"Investors are reacting this morning to moving the email controversy to
the sidelines, but still looking at a race that is too close to call,
said Art Hogan, chief market strategist at Wunderlich Equity Capital
Markets in New York.
"It's a market that is going to scrape back some losses we've seen over
the last nine days and shift into stall mode at some point in time."
Dow e-minis were up 234 points, or 1.31 percent at 8:09 a.m. ET,
with 38,796 contracts changing hands.
S&P 500 e-minis were up 29 points, or 1.39 percent, with 248,888
contracts traded.
Nasdaq 100 e-minis were up 73.25 points, or 1.57 percent, on volume of
31,923 contracts.
Up to Friday's close, U.S. stocks had fallen for nine straight days,
their longest losing streak in more than 35 years, since the FBI said it
was reviewing the newly found emails.
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Traders work on the floor of the New York Stock Exchange (NYSE) in
New York City, U.S., November 3, 2016. REUTERS/Brendan McDermid
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Risk assets were back in favor, with Brent crude futures rising for the
first time in seven days, also helped by OPEC's commitment to stick to a
deal to cut output.
The dollar rose for the first time in five days, while safe-haven gold
was set for its worst day in more than one month.
U.S.-listed iShares MSCI Mexico Capped ETF rose 3.8 percent. The ETF,
known as "Trump ETF", is viewed as a barometer for Trump's chances of
winning the election since his proposed policies are considered deeply
negative for Mexico.
Of the 29 Dow components trading premarket on Monday, 28 were higher,
while one was flat and one was untraded. Apple and Microsoft gained
about 1.5 percent.
Biogen rose 2.9 percent to $138.12 after the drugmaker and Ionis Pharma
announced positive interim trial data on their genetic muscular disorder
drug. Ionis shares jumped 10.21 percent to $29.90.
NetSuite jumped 21 percent to $109 after more than half of its eligible
shareholders backed Oracle's $9.3 billion-bid for the cloud storage
company.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio
D'Souza)
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