Stocks' primary concern
On another Democratic primary Tuesday, the presidential election could be among the factors weighing on U.S. stock markets amid signs that a Bush-Kerry race may be closer at hand.
At 5:35 a.m. ET, futures pointed to a mixed start for the major indexes.
John Kerry could take a significant step closer to the Democratic nomination with victories Tuesday in Virginia and Tennessee. Wins by the senator from Massachusetts in those states would deal a serious blow to the candidacies of two Southerners, Sen. John Edwards of North Carolina and retired Gen. Wesley Clark.
Meanwhile, President Bush is taking the initiative in defending his record in the White House. In his budget report Monday, the president said he expected 2.6 million jobs to be created in 2004 as his economic policies wipe out the decline in jobs over the past three years.
The securities markets generally favor the incumbent, and polls showing a tight race between Kerry and Bush could be cause for concern.
"The markets are getting a little nervous," said Hugh Johnson, chief investment officer at First Albany. "On balance, investors want to see this president and the tax cuts preserved."
The Dow Jones industrial average started the week with a 0.1 percent decline, while the Nasdaq composite index slipped 0.2 percent (see chart for details).
Asian-Pacific stocks ended mixed Tuesday, with Tokyo's Nikkei index down 0.4 percent on weakness in tech issues. European markets opened lower. (Check the latest on world markets)
Among U.S. stocks trading in Europe, Walt Disney was slightly lower. The board of the media company defended chairman Michael Eisner, the target of an ouster campaign led by former vice chairman Roy Disney.
Treasury prices were steady, the 10-year note yield standing at 4.05 percent. The dollar weakened against the yen and euro.
Brent oil futures gained 14 cents to $29.06 a barrel in London, where gold was solidly higher.
money.cnn.com
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