[StBernard] US Stock Futures Lower After Obama Victory

[Westley Annis]

US Stock Futures Lower After Obama Victory

By STEVE GOLDSTEIN 


NEW YORK -- U.S. stock futures dropped Wednesday as traders locked in
profits and focused on the deteriorating economy that President-elect Barack
Obama will inherit. 

S&P 500 (SPY) futures fell 17.10 points to 986.10 and Nasdaq 100 (NDX)
futures fell 25.0 points to 1,355.50. Dow industrial (DIA) futures slipped
132 points. 

U.S. stocks surged Tuesday in the run-up to the election, with the Dow Jones
Industrial Average climbing 305 points, the Nasdaq Composite rising 53
points and the S&P 500 added 39 points. The S&P 500 closed above 1,000 for
the first time in three weeks. 

"Obama has strong personal, political and institutional assets, which
suggest he would implement a reforming policy. He could lead to a positive
confidence shock. Furthermore, his program is relatively well adapted to
America's needs, in the fields of energy, healthcare, social cohesion and
competitiveness," said analysts at French brokerage Exane BNP Paribas
(BNPQY). 

Moves on Wednesday, however, pointed to either profit taking or diminishing
risk appetite as Obama won the presidency and as the Democrats increased
their hold of the U.S. Senate but didn't appear to secure a filibuster-proof
majority. 

After six straight rises, the FTSE 100 dropped 2.6% in London, with oil
giant BP PLC (BP) and Europe's largest drugmaker, GlaxoSmithKline PLC (GSK),
pacing the drop. Asian stocks improved, however, with the Nikkei 225 rising
4.5% in Tokyo. 

Analysts at UBS AG (UBS) said the losers from an Obama victory would be big
pharmaceuticals, managed care, upscale consumer firms, coal and coal-based
utilities, domestic energy service companies, integrated oils and
Bermuda-based insurers. 

Winners would be hospitals and nursing home operators, life sciences firms,
natural gas companies, aggregates, solar firms and life insurers. 

The dollar and the Japanese yen rose against rivals. 

Oil futures tumbled $2.96 to $67.57 a barrel. Gold futures fell $1.80 to
$755.50 an ounce. 

The ADP employment survey for October and the Institute of Supply
Management's non-manufacturing survey for October highlight the day's
economic releases, with weekly energy inventory data also out for release. 

The media sector also will be in the spotlight amid earnings from Time
Warner Inc. (TWX), and after the close, News Corp. (NWS). 

News Corp. owns MarketWatch, the publisher of this report. 

Other big names reporting including Medco Health Solutions Inc. (MHS), Marsh
& McLennan Cos. (MMC), and after the close, tech bellwether Cisco Systems
Inc. (CSCO).