US stocks closed firm on Tuesday but off their best for the session, as investors were cautiously optimistic Hillary Clinton will scrape to victory in the presidential election.
The S&P 500 market bellwether ended up 0.4% at 2139. Earlier, it had risen as far as 2146. The top gaining sector was Utilities, up 0.7%, followed by Telecom Services up 0.6%.
Only the S&P 500 Energy sector declined, by 0.02%, mostly because oil prices eased. The West Texas Intermediate was down 0.33% at $44.74.
Meanwhile, the S&P Midcap 400 closed up 0.2% at 1513, while the S&P Smallcap 600 ended up 0.3% at 726.
The wider small-cap Russell 2000 closed up 0.2% at 1195.
Across the northern border, the TSX Composite in Toronto ended just shy of flat, up 0.03% at 14,656.
Open
US stocks opened lower on Tuesday as investors remained on the sidelines during polling day and health sector stocks took a drubbing – and Hillary Clinton isn’t even elected.
Polling stations are open for the presidential and congressional elections and turnout is expected to be high with opinion polls casting both Clinton and Donald Trump neck-and-neck in recent days. Historically, turnout has been poor with barely over 50% in three four-yearly elections since 2004. In 2000, where a recount was ordered only 50.3% of Americans voted.
During the campaign Clinton has voiced disquiet about the prices drug companies charge, sending health stocks lower.
The S&P 500 market bellwether was down 0.2% at 2126 and led by CVS Health Corp (NYSE:CVS), down 12.7 at $72.80 after warning that it stands to lose 40mln prescriptions next year as deals signed by rival Walgreens Boots Alliance Inc. with other participants in the drug supply chain shut out CVS stores.
The restricted networks caused the country’s largest drugstore operator to temper its profit outlook for the rest of this year and next year, as it announced its quarterly earnings.
Meanwhile, beleaguered Valeant Pharmaceuticals (NYSE:VRX) shares extended their pre-market fall, and were down 21.6% at $15.00 after announcing a smaller-than-expected third-quarter profit due to faltering sales of its dermatology products and irritable bowel syndrome drug, and the company cut its full-year profit and revenue forecasts.
The S&P Midcap 400 lost 0.4% to 1504 and was led by Avis Budget Group (NASDAQ:CAR) down 16% to $32.75.
Institutional investor Mackay Shields Llc decreased its stake in Avis Budget by 50% based on its latest SEC filing. Mackay Shields Llc sold 100,000 shares as the company’s stock rose 22.13%. The investor held 100,000 shares of the consumer services company at the end of Avis’ second quarter, valued at $3.22mln, down from 200,000 at the end of the previous reported quarter. Mackay Shields Llc which had been investing in Avis Budget Group for a number of months, seems to be less bullish on the $3.46bn market cap company.
The S&P Smallcap 600 was down 0.6% at 720 and led by Kindred Healthcare (NYSE:KND) after reporting its third quarter earnings.
Pre-Open
US stocks were expected to open softer on Tuesday, having already “voted” in today’s presidential and congressional elections with a huge rally the previous session after the FBI dropped its probe of Wall Street darling candidate Hillary Clinton’s emails.
Part of the softness was down to poor earnings reports from several health sector stocks.
The S&P 500 market bellwether was indicated opening 0.2% lower.
Key battleground states, including New Hampshire, Arizona, Florida, Nevada and Pennsylvania, are in the spotlight.
According to Macroeconomics Advisers, a Clinton win would boost the S&P 500 by 2% while a Donald Trump win would send US stocks down by 8%. Last Friday, Citigroup similarly predicted a 5% drop in stocks if Trump wins.
But in the spirit of democracy, stocks typically sell off the day following an election -- no matter which candidate wins.
ADRs in steelmaker ArcelorMittal (NYSE:MT) dropped by 6.6% to $6.37 pre-market after investors were disappointed by the latest quarterly numbers. The company noted that anti-competitive behavior in the market was a continued concern.
On US election day, French energy giant Total (NYSE:TOT) signed a deal with Iran's national oil company to develop the giant South Pars field, the world's largest gas deposit.
Total will have a 50.1% interest in the project. Three other partners are also taking a stake.
The first phase of the project is expected to cost $2bn.
Iran has ramped up its energy production since the U.S. and other world powers lifted sanctions on the country. But many businesses have been skittish about doing deals with Iran because some sanctions still remain.
Total ADRs were steady in New York at $47.41.
Beleaguered Valeant Pharmaceuticals (NYSE:VRX) shares were tanking 16.3% to $16.02 pre-market after announcing a smaller-than-expected third-quarter profit due to faltering sales of its dermatology products and irritable bowel syndrome drug, and the company cut its full-year profit and revenue forecasts.
The Laval, Quebec-based company said it now expected Total revenue of $9.55bn-$9.65bn for the year, down from its previous forecast of $9.9bn-$10.1bn.
Adjusted earnings are now forecast to be $5.30-$5.50 per share, compared with the previous forecast of $6.60-$7.00.
But it wasn’t alone. CVS Health Corp (NYSE:CVS) was down 15.8% at $70.23 pre-market after warning that it stands to lose 40mln prescriptions next year as deals signed by rival Walgreens Boots Alliance Inc. with other participants in the drug supply chain shut out CVS stores.
The restricted networks caused the country’s largest drugstore operator to temper its profit outlook for the rest of this year and next year, as it announced its quarterly earnings.
Theme park operator SeaWorld Entertainment Inc (NYSE:SEAS) shares were down 3.9% at $13.69 pre-market after reporting third-quarter net income of $65.7mln, missing forecasts.
On a per-share basis, the Orlando, Florida-based company said it had profit of 77 cents.
The results fell short of Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $1.06 per share.
Staying all things leisurely, Tripadvisor (NASDAQ:TRIP) is reporting after the close.