Published: Sun, November 06, 2016
Economy | By Melissa Porter

Markets Right Now: S&P 500 extends losing streak to 8 days

Markets Right Now: S&P 500 extends losing streak to 8 days

Dow e-minis 1YMc1 were up 18 points, or 0.1 percent, with 30,299 contracts changing hands. The Dow Jones Industrial Average retreated 28.49 points, or 0.2%, to 17,931.22, with Pfizer Inc. and Intel Corp. among the blue-chip gauge's biggest loser.

Not only have markets fallen in the past week, but the VIX, an index that measures volatility, has risen sharply as well, surging over 14% today and is up to 22.08 today from 13 on October 24, the last time the S&P 500 rose on a trading day.

"Despite the fact that Clinton has been ahead in the polls and is likely to win, most of the traditional industries that you would expect would do better under a Republican presidency have done better", said Michael Arone, the Boston-based chief investment strategist at State Street Global Advisors' US intermediary business. "The recent decline has more to do with the top of the ticket polls getting tighter". "Should Trump win, convention calls for a selldown in Dollars and USD assets including American equities".

ELECTION JITTERS: With five days left until the election, Hillary Clinton maintains a lead in polling in the US presidential race but Donald Trump has narrowed the gap.

Data on Thursday showed the number of Americans filing for unemployment benefits rose to near three-month high last week, but remained below a level associated with a strong labor market.

The hard-to-predict election is adding anxiety to a market that already has plenty to fret about.

BONDS AND CURRENCIES: U.S. government bond prices fell.

Markets Right Now: S&P 500 extends losing streak to 8 days
Markets Right Now: S&P 500 extends losing streak to 8 days

Even as valuations have grown, earnings haven't kept pace.

The losses for USA stocks were modest but broad.

Benchmarks closed in negative territory on Wednesday after the Fed hinted that it may raise interest rates in December though it kept rates unchanged at its two-day policy meeting.

A sagging stock market is good news for Donald Trump.

Other companies with major moves after earnings included Fitbit, down 33.6 percent, Marathon Oil, up 10.7 percent and US Steel, up 7.7 percent. While the company reported third quarter results that easily exceeded analysts' estimates, it also acknowledged that growth in advertising revenue was slowing.

The Nasdaq composite is down 131.70 points, or 2.5 percent. Endo Pharmaceuticals Plc plunged 19 percent, the most in six months. Kraft Heinz and Starbucks are among firms posting quarterly results today. Policy makers reinforced expectations for a hike in December after saying the argument for higher borrowing costs strengthened further amid accelerating inflation.

Gold touched $1,300 an ounce earlier in the day, after touching an nearly one-month high on Tuesday. Although the services activity posted moderate growth, overall expansion was largely driven by the manufacturing.

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