Wednesday, 28 September 2016

Wall Street set to rise as Clinton seen winner of debate

Investors have tended to see Clinton as the candidate of the status quo, while few are sure what a Trump presidency might mean for U.S. foreign policy, international trade deals or the domestic economy.

A CNN snap poll said 62 percent of respondents felt Clinton won and 27 percent believed Trump was the winner. Global shares rose after the debate, while the Mexican peso jumped 2 percent against the dollar.

With just over six weeks until Election Day, some investors see a toss-up contest creating volatility in certain sectors, including health insurers, drugmakers and industrials.

"Volatility is going to be the norm, not the exception over the next several weeks," said Art Hogan, chief market strategist at Wunderlich Equity Capital Markets in New York.

Wall Street closed lower in volatile trading on Monday as Deutsche Bank dragged down financial stocks.

The German lender's U.S. stock (DB.N) touched a record low in premarket trading on Tuesday, pulling down U.S.-listed shares of Credit Suisse (CS.N), RBS (RBS.N) and UBS (UBS.N).

Investors will be closely following a speech by Federal Reserve Vice Chairman Stanley Fischer for hints on the timing of the next interest rate hike.

Fischer, who has taken a hawkish stance on interest rates, is scheduled to speak at Howard University at 11:15 a.m. ET (1515 GMT).

Data on tap includes a report from the Conference Board, which is expected to show that the consumer confidence index dropped to 99 this month from 101.1 in August. The report is due at 10:00 a.m. ET.

Dow e-minis 1YMc1 were up 45 points, or 0.25 percent at 8:27 a.m. ET, with 36,707 contracts changing hands.

S&P 500 e-minis ESc1 were up 1.75 points, or 0.08 percent, with 264,713 contracts traded.

Nasdaq 100 e-minis NQc1 were up 4.5 points, or 0.09 percent, on volume of 37,535 contracts.

"Today maybe a day of catching a bit of a rebound after two days of pullback and people's interpretation of the debate," Hogan said.

Oil prices fell 2.7 percent as hopes of a deal emerging from a producers' meet in Algeria faded. The dollar index .DXY rose 0.22 percent. [O/R]

Shares of Amgen dropped 2.15 percent to $169.80 after the drugmaker said its multiple myeloma drug was not found to be superior to Takeda's (4502.T) Velcade in a late-stage study in previously untreated patients.

Gilead fell 1.39 percent to $79.50 after Leerink downgraded the drugmaker's stock to "market perform".

Kite Pharm jumped 11.5 percent to $61.46 after the company said its experimental CAR T-cell therapy was highly effective in treating aggressive non-Hodgkin lymphoma.

Pipeline operator Sunoco  dropped 8 percent to $26.78 after it agreed to buy Vitol Group's crude oil unit in Permian Basin in West Texas for $760 million.

Reference: Yashaswini Swamynathan

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