posted on November 8, 2006 07:04:28 AM new
NEW YORK (AP) - Wall Street retreated in early trading Wednesday after Democrats scored a huge victory in congressional elections, raising questions about how sympathetic the federal government will be toward business.
Investors had largely expected Democrats to win control of the House of Representatives for the first time in a dozen years, but still undecided Senate races in Montana and Virginia that left the leadership of that house unclear created the type of uncertainty investors dislike.
Still, some pullback in stocks was to be expected after back-to-back sharp gains for the major indexes this week.
Companies in sectors as disparate as housing and stem-cell research showed movement Wednesday as investors tried to determine how government might weigh in with regulations or business-friendly measures.
n the first hour of trading, the Dow Jones industrial average fell 40.02, or 0.33 percent, to 12,116.75.
Broader stock indicators also fell. The Standard & Poor's 500 index was down 5.94, or 0.43 percent, at 1,376.90, and the Nasdaq composite index fell 14.83, or 0.62 percent, to 2,361.05.
Bonds showed little movement, with the yield on the benchmark 10-year Treasury note flat at 4.66 percent from late Tuesday; investors were awaiting the results of the government's auction of 3-year notes later in the day. The dollar was mixed against other major currencies, while gold prices fell.
Light, sweet crude rose 32 cents to $59.25 in premarket electronic trading on the New York Mercantile Exchange.
Companies in the stem-cell sector showed gains after voters in Missouri narrowly approved a referendum guaranteeing federally approved stem-cell research and treatment will be available in the state. StemCells Inc. (STEM) rose 33 cents, or 10.8 percent, to $3.40, while Geron Corp. (GERN) rose 40 cents, or 4.8 percent, to $8.78. Aastrom Biosciences Inc. (ASTM) was up 13 cents, or 8.7 percent, to $1.62.
Also, companies in the mortgage business made advances on the notion that Democrats would push plans to broaden access to housing. Fannie Mae (FNM) was up 50 cents at $60.40, while Freddie Mac (FRE) was up 42 cents at $70.28.
The Russell 2000 index of smaller companies was down 4.21, or 0.55 percent, at 760.18.
Overseas, Japan's Nikkei stock average closed down 1.08 percent. In afternoon trading, Britain's FTSE 100 was down 0.37 percent, Germany's DAX index was down 0.43 percent, and France's CAC-40 was down 0.38 percent.
posted on November 8, 2006 09:18:02 AM newStill, some pullback in stocks was to be expected after back-to-back sharp gains for the major indexes this week.
The Stock market was hardly open and the Repugs are already blaming the Democrats for it.
Absolute faith has been shown, consistently, to breed intolerance. And intolerance, history teaches us, again and again, begets violence.
---------------------------------- The duty of a patriot in this time and place is to ask questions, to demand answers, to understand where our nation is headed and why. If the answers you get do not suit you, or if they frighten you, or if they anger you, it is your duty as a patriot to dissent. Freedom does not begin with blind acceptance and with a flag. Freedom begins when you say 'No.'
