US STOCKS-Wall Street set to open higher as Americans head to the polls

Reuters11-05 22:02

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window.)

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Trump leads in betting markets, polls show tight race

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Palantir soars after raising its annual revenue view

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Boeing gains as workers accept new contract offer

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Futures up: Dow 0.07%, S&P 500 0.16%, Nasdaq 0.30%

(Updated at 8:30 a.m. ET/ 1330 GMT)

By Lisa Pauline Mattackal and Ankika Biswas

Nov 5 (Reuters) - U.S. stock index futures were set to open slightly higher on Tuesday as voting began in a tightly contested presidential election, with traders girding up for volatile trading over the next few sessions until a winner is declared.

Opinion polls in the campaign's final days showed Vice President Kamal Harris and Republican Donald Trump running neck-and-neck in each of the key seven states. But the final outcome could take days.

Most betting market odds, which many investors over the past few months have been relying to predict the outcome, showed the former president as the frontrunner.

The U.S. dollar and Treasury yields are moving in tandem with election outcome bets, while fully pricing in a 25-basis point cut to interest rate by the Federal Reserve.

The 10-year yield was up slightly, but remained below the near four-month high of 4.388% touched last Friday.

The VIX , Wall Street's "fear gauge", stood at 21.95, above its 30-day moving average of 19.65, but below the two-month high it hit last week.

"There's certainly a lot of anxiety about the election result, but (good) economic data, Fed cutting rates, earnings coming in pretty strong can overwhelm that anxiety," said Ross Mayfield, investment strategy analyst at Baird.

In case an unsettled result on Wednesday sparks investor anxiety, Mayfield recommends taking advantage of election-related market pullback.

Investors are also keeping an eye on Congressional elections to determine the balance of power in Washington. Many analysts predict a split government, which would limit the ability of the President to enact significant policy changes.

Rate-sensitive megacap growth stocks rose in premarket trading, with Nvidia up 0.8% and Meta Platforms

adding 0.5%. Tesla gained 1.8%.

Stocks viewed as bets on a win for the former president rose in choppy trading, with Trump Media & Technology Group

and software developer Phunware last up around 7% each.

Dow E-minis were up 28 points, or 0.07%, S&P 500 E-minis were up 9.25 points, or 0.16%, and Nasdaq 100 E-minis were up 60.5 points, or 0.3%.

Boeing gained 2% as a prolonged and crippling strike ended after factory workers accepted a new contract offer.

Palantir soared 15.4% after the data analytics firm raised its annual revenue forecast for the third time.

Emerson Electric climbed 6% on the industrial firm's proposal to acquire the remaining outstanding common shares of Aspen Technologies for $240-per-share in cash.

Adding to the action-filled week, the Fed's November policy meeting starts on Wednesday. While markets are betting on a 25-bps rate cut, the outlook for future easing has grown uncertain as data points to a strong economy.

On the data docket, October S&P Global and ISM services PMI are expected after the opening bell.

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(Reporting by Lisa Mattackal, Shashwat Chauhan, Medha Singh and Ankika Biswas in Bengaluru; Editing by Arun Koyyur)

((LisaPauline.Mattackal@thomsonreuters.com;))

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