Stock futures pulled back slightly on Tuesday as voters headed to the polls to elect the next U.S. president.
S&P 500 futures were down 0.16%, Dow Jones Industrial Average futures fell 0.1%, and Nasdaq futures declined 0.14%.
The S&P 500 snapped its worst losing streak in decades on Monday as confidence in an election win for Hillary Clinton inspired market bulls. FBI Director James Comey updated Congress on Sunday that a new investigation into emails tied to Democratic presidential candidate Clinton would not bring any charges. Wall Street had been on edge for the past week after Comey announced the new investigation, making the results of the U.S. presidential election more of an uncertainty.
"The market dislikes uncertainty and a Clinton win provides the market with more clarity about how the policies of the next four years may look," Jennifer Ellison, principal at Bingham Osborn & Scarborough, told TheStreet.
The chance of a Clinton win currently sits at a 71% chance, according to FiveThirtyEight. The statistics site has Clinton winning 302 electoral votes and 48.5% of the popular vote. Separate national polls give Clinton a roughly 48% chance to win to Trump's 44%. Nearly 42 million Americans have already cast their ballots in early voting, a record number which has skewed toward Democrats.
However, there is also room for a surprise, noted Ellison, pointing to the Brexit vote in June. Markets had priced in a vote for the United Kingdom to remain in the European Union and sold off rapidly on the outcome before restoring previous levels as attention shifted to earnings season and the Federal Reserve.
"The same may occur if Trump wins -- an initial selloff that may or may not last long," added Ellison. "We simply don't know how the market will react or how long that reaction may last ... Markets move extremely quickly and any new expectations will be repriced rapidly. Investors should not be making large strategy shifts in the midst of all this noise."
Chicago Federal Reserve President Charles Evans spoke on monetary policy on Tuesday, arguing that it wasn't a "crime" to overshoot the central bank's 2% inflation target. Evans spoke at the Council of Foreign Relations in New York on Tuesday morning. The chances of an interest rate hike in December currently sit at 76%, according to CME Group fed funds futures.
In earnings news, Priceline (PCLN) jumped 5% after topping quarterly expectations. The online bookings company earned an adjusted $31.18 a share in its third quarter, higher than an anticipated $29.92 a share. Sales surged 19% to $3.69 billion. Priceline also said it would slow down growth plans for its restaurant booking business OpenTable.
Valeant Pharmaceuticals (VRX) tumbled nearly 9%, putting it on track to open at its lowest since mid-2010, after slashing its outlook. The pharmaceutical company expects full-year earnings of $5.30 to $5.50 a share, sharply lower than previous earnings of $6.60 to $7 a share. Quarterly results also fell short of estimates as earnings fell to $1.55 a share from $2.41 a year earlier and revenue slumped 11%.
CVS (CVS) fell 13% in premarket trading after lowering its full-year guidance. The pharmacy chain anticipates full-year earnings of $5.77 to $5.83 a share, down from a previous range of $5.81 to $5.89 a share. CVS also reported a mixed third quarter, beating on the bottom-line but falling short on the top.
Hertz (HTZ) plummeted 35% in premarket trading, on track for its worst one-day decline since going public in 2006, after guiding for a weak full year. The car-rental company expects full-year earnings between 51 cents and 88 cents a share, below its previous guidance of $2.75 to $3.50 a share. Hertz also reported a decline in third-quarter earnings on weakness in the U.S. rental market.