Market waits for election; earnings disappoint

NEW YORK—The US stock market is waiting for the presidential election as much as anyone. The US stock market struggled for direction yesterday. Stocks waffled between small gains and losses, but by mid-afternoon it seemed they would finish solidly lower. The Dow Jones industrial average fell as much as 108 points before rallying in the late afternoon to finish two points higher. There wasn’t any obvious catalyst for the turnaround, other than general indecision on the part of investors.

Investors are wary of making big moves before they know who’s going to be the next president. “They need to know the playing field before they get out there and play,” said Jeff Savage, regional chief investment officer for Wells Fargo Private Bank in Portland, Oregon. David Katz, principal and senior portfolio strategist at WeiserMazars Wealth Advisors in New York, said it matters more that the election is wrapped up than who is elected.

The Dow Jones industrial average ended virtually flat. It inched up 2.38 points, or 0.02 per cent, to close at 13,345.89. The Standard & Poor’s 500 index was also little changed, edging up 0.62 point to 1,433.81. The Nasdaq composite index rose 11.34 to 3,016.96.

In other trading, the yield on the ten-year Treasury note rose to 1.81 per cent from 1.76 per cent late Friday. The euro was worth US$1.3045, up slightly from Friday. Energy prices fell. Crude oil lost US$1.32 to US$88.73 a barrel.