US stock futures point to a lower open Wednesday morning following the reelection of President Barack Obama. While the popular vote and tallies in key battleground states were close, it was a somewhat surprising margin of victory in the electoral college for the president. There was also little changed as far as control of Congress, as Republicans remain in control of the House of Representatives while the Senate remains controlled by the Democrats. Investors are now shifting their anxiety toward the fiscal cliff, with fears that a still-gridlocked electorate will find it hard to reach a compromise.
An Obama victory was expected to be positive for risk appetite and negative for the dollar, which retreated against a basket of other currencies after the election was called for the president. Gold also pushed higher on the Obama reelection victory as the Federal Reserve status quo remains intact. Today's session has the chance to be a volatile one after futures have swung back and forth from gains and losses.
Europe's woes are also weighing on the market this morning, with ECB Chairman Mario Draghi stating that the regional debt crisis is starting to negatively effect Germany. In Greece, a vote will occur at 1:00 p.m. ET today for its Congress to approve the latest austerity measures that will pave the way for more aid.
This morning is light on earnings, with Kraft Foods (NASDAQ:KRFT) and Time Warner Cable (NYSE:TWX) both positive after better than expected EPS results.
Although it continues to act heavy, traders will be watching Apple (NASDAQ:AAPL) for signs of life. The longer the stock stays below the 200-day moving average, the more likely it is to get another leg lower. The $569 level is next support to watch.
The banks were an early source of strength yesterday, led by the resurgent leader Goldman Sachs (NYSE:GS). See if that trend continues and the banks can lead a bounce.