It might be a bit of a stretch to expect a big move in either direction, or even to expect relatively high volume today. We are currently rife with uncertainty, and nothing cures uncertainty in one fell swoop like a General Election. Once the polls have been counted, likely by Tuesday night, the markets will have their road maps ready, regardless of the outcome…
The markets have been able to absorb roughly two-thirds of the disappointing 3rd quarter earnings season. Companies missing on their top and bottom lines have naturally led to lowered guidance going forward, The markets have thus absorbed these developments as well, and we can see the disappointment, in aggregate, manifesting itself in things like the Dow falling nearly 140 points on Friday.
As I inferred, I don't expect much, if any, correction until the election has been decided. But that said, I think there are some potentially positive reports to look forward to, starting a bit later this morning:
Today we get the ISM non-Manufacturing report, which follows Thursday's positive manufacturing and construction report. If we see a modest increase in today's ISM read, it would be in line with economic trends we have been seeing lately.
This morning, Humana (HUM) reported 3rd quarter earnings ahead of analysts' estimates but down year over year. The healthcare giant also raised guidance for full-year 2012.
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