|
Street awaits the count
|
 |
November 7, 2000: 7:25 a.m. ET
Investors seen cautious as votes cast in tight presidential race
|
NEW YORK (CNNfn) - Finally. After months of watching the campaign and the handicapping, investors will head for the polls Tuesday and then back to their computer screens to watch stocks and the progress of what could be the closest presidential election in 40 years.
Several sectors are rooting for Texas Gov. George W. Bush, who has said he would push for more oil exploration and initiate more business-friendly tax cuts.
But Vice President Al Gore says his tax cuts are broader and he is thought to be more technology-friendly than Bush. Experts have also said the bond markets could benefit from a Gore win.
Early indications suggest U.S. stocks will open lower.
Although overshadowed by the elections, other factors that could affect stocks Tuesday include better-than-expected earnings from tech heavyweight Cisco Systems (CSCO: Research, Estimates).
Despite the report, Cisco stock fell after-hours Monday. Tech investors will also be eyeing a wider-than-expected third quarter loss from VoiceStream Wireless (VSTR: Research, Estimates).
 The Nasdaq 100 futures fell 36 points to 3,295 in early trading. That put the futures 19.72 points below fair value, a benchmark set daily by traders based on future contracts and their underlying stocks, meaning traders expect a lower open for the Nasdaq market.
S&P futures, the most widely watched futures contract, lost 5 points to 1,441.50 on the Globex trading system. That left futures less than a point above fair value, suggesting a flat open for that index. The S&P futures are also watched as an indicator of the Dow Jones industrial average, with one point of difference between the futures index and fair value equal to about eight points on the Dow Jones industrial average.
On Monday, U.S. stocks finished mixed with the Dow gaining 159.26 to close at 10,977.21. The Nasdaq fell 35.37 points to 3,416.21 while the S&P 500 gained 5.50 to 1,432.19.
In Asia Tuesday, markets were mixed while in morning trading in Europe, technology and telecom stocks led the markets lower.
In the Treasury market, the 30-year bond was little changed with its yield at 5.88 percent. The 10-year note, which some observers now consider their Treasury benchmark, was also little changed, its yield flat at 5.85 percent.
In the currency market, the dollar was mixed in early trading. The euro climbed to 86.15 cents from 86.03 cents late Monday. Meanwhile, the dollar edged up to 107.40 yen from 107.33.
Oil prices remained flat in London trading Tuesday. The price for Brent Crude for December delivery was steady at $30.53 a barrel.
In company news, profits for computer networking gear maker Cisco beat Wall Street forecasts by a penny. The company posted its 10th straight year of record revenue. Its stock fell $1.62 to $55.13 Monday and it lost another $1 to $54.13 early Tuesday, according to the London office of Bernard L. Madoff Securities, one of the biggest firm matching buyers and sellers on Nasdaq.
Click here for election-sensitive stocks
VoiceStream Wireless (VSTR: Research, Estimates) reported a wider than-expected third quarter loss Monday, citing executive compensation and other one-time expenses related to the company's pending merger with Deutsche Telekom. Shares of VoiceStream slipped $2.44 to $117.37 Monday.
Homstore.com (HOMS: Research, Estimates) could be active after the Wall Street Jounal reported that federal investigators have stepped up their probe of the real estate services site's plan to buy rival Move.com, owned by Cendant Corp., for about $1 billion. Homestore.com fell $2.81 to $39 Monday while Cendant (CD: Research, Estimates) ended unchanged at $12.56.
Meanwhile, Office Depot (ODP: Research, Estimates), the No. 1 retailer of office products, warned Monday that it expects same-store sales to drop significantly in the fourth quarter and earnings to fall far short of expectations due in part to weaker computer and accessory sales. Shares of Office Depot finished up at $6.94, down 69 cents on the day.
Another stock to watch is VA Linux Systems (LNUX: Research, Estimates), which tumbled after it warned Monday of a revenue shortfall because of an Internet spending slowdown. Shares of the marketer of Linux operating systems fell $12.62 to $17.38 Monday. 
|
|
|
|
|
 |
|
INVESTORS' HOT LINKS
