Stock futures are mixed and Treasury yields edge up as Election Day arrives
Polls favor Democrats to win the House while the Senate is uncertain, and analysts see different implications for spending and markets.
By James Mitchell ·
Why it matters: Who controls Congress shapes spending and deficits, concerns analysts say have added to market volatility.
For information only, not investment advice. Prices delayed.
Tickers: AAPL
Wall Street went into Election Day without a clear lean. US stock index futures were mixed Tuesday morning as crude oil ticked up and markets waited on the midterm results, Reuters reported, while Treasury yields edged higher as voting began, according to CNBC.
The vote itself is the main event. Polls and nonpartisan analysts favor Democrats to take the House from Republicans, while control of the Senate remains uncertain, Reuters reported.
What changes for your money
For investors, what matters is also what Congress can then pass. Concerns about government spending and deficits have kept building and added to market volatility, Societe Generale analysts said in a note cited by Reuters. The same analysts added that any meaningful fiscal expansion would still need extensive negotiation, and that with Democrats likely to gain the House, the legislative backdrop could become more gridlocked. Morgan Stanley analysts were more upbeat, saying in a note earlier this week that the elections should help remove a major market overhang, according to Reuters.
The rest of the week
In tech, Apple ($AAPL) warned that the cost of memory chips would keep rising and pressure its holiday-quarter gross margin, Reuters reported. Oil rose after an Iranian official said a deal to end the war was far off, while the United States struck Iran's Qeshm Island, according to Reuters.
Then comes the data. September's JOLTS job openings report from the Bureau of Labor Statistics is due later Tuesday and is expected to show a slight rise to 7.10 million openings, from 7.079 million in August, CNBC reported. ISM services and ADP employment figures follow Wednesday, and October's jobs report lands Friday. Yields and bond prices move in opposite directions, so rising yields mean Treasury prices are slipping.
Sources
- US stock futures mixed as Apple slides, midterms loom, Reuters (via Investing.com)
- Treasury yields rise as investors weigh midterm vote, jobs data and Iran tensions, CNBC
Tags: elections · congress · treasury · markets-moves · jobs