U.S. stocks poised to open higher as Wall Street cheers Republican election wins

“U.S. stocks were poised to open higher Wednesday, as Wall Street cheered a number of Republican election wins ahead of the Federal Reserve’s latest policy meeting decision,” CNNMoney reports. “Less than an hour before the open, S&P 500, Nasdaq-100 and Dow Jones industrial average futures were higher.”

“Wall Street ended a volatile day mixed on Tuesday as investors digested rising commodity prices and Warren Buffett’s buyout of railroad Burlington Northern Santa Fe,” CNNMoney reports. “But positive market momentum appeared as investors were encouraged by several Republicans victories, including the governor races in both New Jersey and Virginia.”

CNNMoney reports, “More broadly, the wins reflect a sharp rebuke by Americans of current policies in Washington, including massive spending programs that have helped grow the federal deficit. ‘The election results suggest that perhaps the referendum of the Democratic Party, more specifically President Obama, is being challenged in the marketplace,’ said Mark Luschini, chief investment strategist at Janney Montgomery Scott.”

“Still, much of Wednesday’s focus was on the outcome of the Federal Reserve’s two-day policy meeting, set to conclude Wednesday afternoon,” CNNMoney reports. “Investors have been nervous about the economic recovery recently and have been anxiously awaiting some guidance from the central bank about how it plans to remove billions of dollars in stimulus funds it has poured into the economy in the wake of the financial crisis.”

CNNMoney reports, “Investors will be looking for clues in the Fed statement, which is due to be released at 2:15 pm ET. The central bank is widely expected to hold the fed funds rate, a key overnight bank lending rate, at historic lows near 0%.”

Full article here.

MacDailyNews Note: In early trading, shares of Apple Inc. (AAPL) are up $2.605, or 1.38%, to $191.355.

69 Comments

  1. If you believe that headline, then please wire transfer me all your money so that I can “invest” it.

    I guess today MDN is going to be political daily news so I guess I’ll digest my tech news elsewhere today.

  2. @G Spank

    The banks got big bail out money and big pay increases under Bush and Obama…. Obama talks about cracking down on them… but does not do very much about it… especially for Goldman Sachs, and JP Morgan….which apparently are untouchable.

    It appears both parties are working much more for Corporations and Big Banks… Look at all the the donations they take from Big Banks.. especially Obama.

  3. Was Wall Street also cheering the election of a Democrat in NY-23? It’s the first time a Democrat has been elected there since the 1800s.

    They say all politics is local. I think that especially held true for Jon Corzine. NJ has the highest property taxes in the nation and although he pledged to reduce them, he didn’t.

    You won’t read it on MDN or CNN Money, but CNN’s news side reported last night that exit polls indicated voters approve of Obama by 57% in New Jersey and 52% in Virginia.

    What changed from last year’s election is that the coalition of young people and other traditionally nonvoting groups who were motivated to vote for Obama in 2008 didn’t go to the polls in 2009.

    There also appears to be an anti-incumbent wave at work. In my hometown voters just kicked out an incumbent mayor and city commissioner.

    So it goes. I’m more enthusiastic about the Breeders Cup races this weekend. Go Zenyatta!

  4. @Reagan

    The same thing would have been true for both Bushes.

    The vote is always going to swing away from the incumbent president party. Happened with Clinton and GW. Both lost control of the house and senate during their terms. This is American politics, voters don’t like one party have total control for long. I bet the Dems will lose control of congress in the next major election in a years times.

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