U.S. stock futures edge up as Republicans sweep House; result mostly priced in already – analysts

“U.S. stock index futures signaled a firmer opening for Wall Street on Wednesday and Treasury futures rose in anticipation that the Federal Reserve will announce more asset purchases to stimulate the economy,” Harpreet Bhal reports for Reuters.

“Market reaction to Republicans’ victory in the midterm elections was relatively muted as investors have largely priced in an outcome that is seen as a net positive for business, with the focus firmly on the Fed meeting,” Bhal reports. “Republicans seized control of the U.S. House of Representatives and strengthened their ranks in the Senate in midterm elections after voters punished Democrats over high unemployment and a sluggish economic recovery.”

“A divided Congress is seen as supportive for stocks. Critics for example of the new healthcare law, which put pressure on related stocks earlier this year, hope Republicans can spearhead attempts to repeal or not fund parts of the reform,” Bhal reports. “But the S&P 500 index has gained almost 14 percent since September, and analysts said the result was largely priced in and may raise some doubts over fiscal spending to support the recovery, leaving stocks ripe for some profit taking.”

Full article here.

MacDailyNews Note: Shares of Apple Inc. (AAPL) are up slightly in pre-mart trading to $311.30 (+$1.94, +0.63%).

78 Comments

  1. I think that the message is unmistakable that the Obama agenda is dead. The question is how much of it is going to be repealed and how much will Obama be willing to concede.

    Republicans are going to have de facto control of the Senate in the sense that there were going to be several Democratic senators that are going to be up for re-election in two years… There are going to be more Democrats up for re-election than Republicans in two years in the Senate, and they’re looking at the fate of those Democrats who went with the president with his agenda and walked the plank and are now gone, and they’re not going to go. And I think there will be great resistance in the Senate to any advance of the Obama agenda.

    You have had a real shift of power to the Republicans, de jure in the House, and de facto in the Senate. But if you’re Republican, I think it works rather well in terms of strategy for ‘12. You really didn’t have the control of the two houses because then Obama could do a Truman where he ran against the do-nothing Congress and ran for re-election. If you put too much of the actual official power in the hands of the Republicans, it makes them responsible. Right now, I think they’re in perfect position tactically. Control the House, object, propose stuff that Obama may veto and run on that against him in 2012.

    Charles Krauthammer, Nov. 3, 2010

  2. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />
    Get out of here duffus politico rant!!!!!

    This is Mac USA country! Let’s talk Apple!
    BUY AAPL stocks! AAPL = $401 in 2011.

    Big companies are buying up iPhone 4 in bulk!!!!!

  3. MacBill
    He’s Afro-American, not Black.
    He is one-half White and raised as a White.
    He married a Black, and has Black children.
    Can we now dispense with the race crap?

  4. I honestly don’t know why anyone’s celebrating. Two years of absolute political stagnation to look forward to, just at the time when your country needs action. I just hope whatever fires left to burn over there don’t infect the rest of the world’s economies.

  5. The market should tank. We are still in the midst of the Great Republican Recession brought to you by 8 years of Bush and 12 years of a Republican congress.

    I guess the people want more.

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