Wall Street set for Election Day boost
Futures climb, tracking gains in Europe. Trading expected to be subdued as presidential race nears finish line.
NEW YORK (CNNMoney.com) -- U.S. stocks futures rose Tuesday as voters headed for the polls to choose America's next president.
With less than an hour before markets open, the Dow Jones industrial average, S&P 500 and Nasdaq 100 futures were soaring higher.
Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.
"People are celebrating a thawing in the credit markets," said Art Hogan, chief market strategist at Jefferies & Co., noting that today is the 17th consecutive day of declines for the Libor, or London Interbank Offered Rate, a daily average of the bank-to-bank lending rates from 16 banks in the U.K.
Markets have gotten a boost as lending rates have improved amid efforts by the U.S. and governments around the world to get money flowing again. Last week, the Federal Reserve cuts, and the European Central Bank and the Bank of England are widely expected to cut rates this week.
But stocks could have trouble maintaining direction as investors await the outcome of the race for the White House. Voters packed the polls after the lead presidential candidates, Sen. John McCain (R-Ariz.) and Sen. Barack Obama (D-Ill.), wrapped up their campaigns in the wee hours.
Hogan said that an Obama victory is priced into the markets because of his lead in pre-election day polls. A McCain victory would be more of a surprise to the markets, he added.
Stocks were in a holding pattern Monday. The Dow Jones industrial average lost a few points. The S&P 500 index dipped 0.3% and the Nasdaq composite added 0.3%.
Economy: Investors will take in a report on September factory orders, due out at 10 a.m. ET. Economists expect a decline of 0.8% for September, according to a consensus of projections from Briefing.com. This is compared to August, when factory orders plunged 4%.
World markets: Japan's Nikkei index surged 6%, but Asian markets finished the session mixed. European stocks gained in morning trading.
Oil and money: The U.S. dollar slipped against the euro and the British pound, but rose against the yen. Oil prices were flat, edging up 45 cents a barrel to $64.36. 
