It seems as though you are getting market stabilization now. The market has shown signs of stabilizing after the last few trading sessions. Panic selling is over; large funds are properly leveraged now. Even though economic data has continued to be poor alongside outlook, markets seemed to have priced that in, barring extremely unforeseen events. It was a rally from bell to bell, with the Dow closing up over 300 points to finish at 9,624.88. The Nasdaq was up 3.12%, and the broader S&P 500 rose 4.08%.

Cliff Watch: Good news that your portfolio most likely got a boost yesterday, because the drive to the cliff would have been a bit more expensive. Oil prices jumped more than 10% on signs Saudi Arabia and other OPEC members had made cuts in crude exports.

Morning Outlook

As you may or may not have heard, Senator Barack Obama was elected the 44th President of the United States. Investors look to the morning after the historic event. Even though the world cheered his victory, global markets were mixed in trading. Japan’s Nikkei 225 stock average advanced 4.5%, however you seem to have mixed results with both the European markets and U.S futures. The FTSE 100 was down almost 3%, while Dow futures dropped slightly. S&P 500 futures however, were experiencing a move to the upside as of 7 am eastern. With such a large run up in the markets over the last week, profit taking in this environment should be expected at some point.

Economic Calendar

Considering he is now President-Elect Obama, I would know his plan for the direction of our economy, and induce what sectors may benefit from the support of his administration. Let’s keep the momentum and get a good employment figure!

8:15 AM
ADP Employment Report: The new ADP national employment report can help improve the payroll forecast by providing information in advance of the employment report. By tracking the jobs data, investors can sense the degree of tightness in the labor market. If wage inflation threatens, it’s a good bet that interest rates will rise in correlation with a fall in bond and stock prices.

10:35 AM
EIA Petroleum Status Report: The Energy Information Administration (EIA) provides weekly information on petroleum inventories in the U.S. With the sharp fall in crude, it will be interesting to see if demand has continued to taper off as well. Any unexpected drop in inventories could signal strength in the economy, however a move up in crude oil prices could spark further inflationary fears and we could see a rebound in commodity prices.  I just paid $2.29 at the pump, how did you do?