Investors on hold as election looms

Written By limadu on Senin, 05 November 2012 | 04.32

NEW YORK (CNNMoney) -- U.S. stock futures hovered around breakeven on Monday, as investors hit the pause button ahead of the U.S. presidential election.

The latest CNN poll indicates a dead heat in the race for the White House, with 49% of likely voters questioned in support of President Obama and an equal amount saying they back former Massachusetts governor Mitt Romney.

Investors are cautious ahead of the elections because the results will set the tone for the debate over how to address the fiscal cliff and the nation's growing debt levels. A survey by CNNMoney showed 60% of investment strategists and money managers agreed that the pending fiscal cliff poses a biggest threat to stock market, as Washington's failure to address the fiscal cliff -- the simultaneous onset of tax increases and spending cuts that will be triggered on Jan. 1 -- would push the country back into recession and drive unemployment higher.

Related: The election and your money

Though the election will garner the most attention this week, investors will continue to keep tabs on economic data and corporate earnings.

After the opening bell Monday, the Institute for Supply Management will release its service-sector index for October. The ISM Services Index is expected to come in at 55.0, down slightly from 55.1 in the month prior, according to a survey of analysts by Briefing.com.

In corporate news, electric car maker Tesla (TSLA) and offshore drilling company Transocean (RIG) will report quarterly results in the morning.

U.S. stocks sank Friday afternoon as investors shrugged off a better-than-expected October jobs report and grew wary ahead of the election.

Fear & Greed Index

Overseas, investors also continue to be worry about the eurozone economy. European stocks were lower in morning trading. Britain's FTSE 100 and the DAX in Germany lost 0.7%, and France's CAC 40 dropped 1%.

Meanwhile, China's ruling Communist Party is preparing to shuffle its top ranks, an opaque process that will affect the country's economy and stability for years to come.

Asian markets ended slightly lower. The Shanghai Composite shed 0.1%, while the Hang Seng in Hong Kong and Japan's Nikkei fell 0.5%.

Companies: Warren Buffett's Berkshire Hathaway (BRKB) reported earnings after the bell Friday that surged more than 70% versus a year ago, primarily due to investment gains.

Currencies and commodities: The dollar higher against the euro and the British pound but fell slightly versus the Japanese yen.

Oil for December delivery rose 11 cents to $94.97 a barrel.

Gold futures for December delivery added $3.50 to $1,678.70 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury edged higher, pushing the yield down to 1.70% from 1.73% late Friday. To top of page

First Published: November 5, 2012: 6:22 AM ET


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