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The market trending was strongly positive yesterday as traders anticipated mid-term election results and possible Federal Reserve action plans. Stock trend lines carried high into the green as traders anticipated the scope and sequence of an additional economic stimulus package due to be detailed later today. The Federal Reserve will meet to discuss an action plan that aims to support economic recovery via the purchase of Treasury bonds. Also today, the Commerce Department will provide a report on factory orders in October. In addition to these reports on Wednesday, auto sales will post. Today starts with the election results news. The big picture shows that Congress is divided as the GOP takes the House and the Democrats hold the Senate. Stocks are likely to continue trending into the green today as Republicans are viewed as more business friendly. Positive trending is also likely due to the conclusion from the Feds two-day policy meeting that will come today. The expectation from the Feds meeting is that Treasuries will be purchased in total of $500 billion worth and spread out in $100 billion monthly increments. Interest rates will lower and the hope is that lending and ultimately spending will increase. The dollar will likely lose ground however. It has recently eased against the euro, Japanese yen and British pound. Later this week on Thursday, the Labor Department will release statistics on the initial jobless claims. Pending Home Sales are due out on Friday from the National Association of Realtors. As home sales are often a positive indicator of the general health of the economy, hopes are that signs will point toward home sales improvements. Pre-Market trading reveals that stock futures are positioned mixed today. The Nasdaq and S&P 500 are up while the Dow Jones is slightly down. World markets are trending mostly green across the board right now. Author: Frank Matto
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