Yes! Yes! Yesssss! President Barack Obama for four more years.
While we can definitely take some time to revel in this fantastic news, the world keeps on spinning and the economy needs to be top-of-mind. Already, there have been some positive reactions to Obama’s win, but The Wall Street Journal reports that it’s nothing to write home about.
“[T]hese moves so far have been muted, partly due to the focus now turning to a divided Congress and the need to avert a ‘fiscal cliff’ of automatic spending cuts and tax hikes which could kick-in in January,” MarketBeat writes. “The broader global economy also remains in the doldrums, not least because the euro-zone crisis continues to rumble on with Greece facing a key parliamentary vote Wednesday evening that could help determine whether the cash-strapped country gets its next installment of bailout money.”
Speaking this morning on the Today show, Jim Cramer also cited the “fiscal cliff” as a reason why the economic reaction won’t be stronger. “There’s not a lot of certainty right now,” host Savannah Guthrie said. (Full clip below.)
With tax increases and budget cuts looming come January 1, there needs to be compromise between the parties for work to get done. It’s that inability to work together that has indicators showing that stocks will open lower this morning. CNN is saying right now that the markets are going to give back the gains from yesterday, saying the perception of the same old-same old in government is causing concern. Besides the issues overseas and the fiscal cliff, the ongoing “under-performance” (to use Cramer’s word) caused by the threat of regulation and taxes has Wall Street worried.
“Investors seem to be looking past the hard-fought Obama win and focusing on the virtual status quo that remains in Congress, where Republicans retain control, and the Senate, in which the Democrats still have a slim majority, altered little by picking up two seats,” reports USA Today.
But, we can be happy that the economy is on the road to recovery.
“The jobs picture has already been improving gradually. Employers added a solid 171,000 jobs in October. Hiring was also stronger in August and September than first thought,” TIME writes. “…That said, most economists predict the improvement will remain steady but slow.”
Update at 9:35 am: Just minutes into the day’s trading, the Dow is already down 179 points.