Election Hangover

Good morning. The market is set for a sluggish day following yesterday's election where the Democrats took control of the House of Representatives.

Though the market expected that news, the Democrats weren't also expected to take over the Senate. The Dems could achieve that if they win in both Montana and Virginia, two races that still haven't been declared (and probably won't be for awhile). As a result from the political shift, concerns over taxes have been raised and sectors which are thought to fare worse under the Democrats (i.e. energy, defense, drug) are expected to be under pressure.

Meanwhile, there's some corporate news this morning but it is far and few between. Investors will be watching the Cisco Systems' earnings report after the close as well as the EIA Petro report at 10:30AM. Notable premarket gainers are TRMS, CECO, STEM, HOLX, NOVL, GERN, WFMI, ATVI, IIG, SFLY, NVAX, URBN, BRLC, MLNM, and BPA. Notable decliners are TRLG, LMRA, AZPN, PEIX, SIGA, OSIP, BCRX, DPTR, ESLR, and TEVA.

They'll be a little bit of election hangover as the market looks ahead for future reasons to continue this rally. Have a wonderful Wednesday!