A sharply higher start is expected, although futures have dipped from
session highs: S&P futures vs fair value: +24.90. Nasdaq futures vs
fair value: +29.00. Credit markets continue to show improvements.
Interbank dollar lending, known as Libor, declined across all terms and
the TED Spread is down 20 basis points to 2.22%. Walgreen (WAG) reported a 2% year-over-year increase in October same-store sales and an overall increase of 6.8%.
But stocks could have trouble maintaining direction as investors await the outcome of the race for the White House.
Obama victory is priced into the markets because of his lead in
pre-election day polls. A McCain victory would be more of a surprise to
the markets.
Economy: Investors will take in a report on September factory orders, due out at 1500GMT. Economists expect a decline of 0.8% for September. This is compared to August, when factory orders plunged 4%.
Oil prices were flat, edging up 45 cents a barrel to $64.36.