Noel Sheppard at Newsbusters has a quote from CNBC analyst Maria Bartiromo on why she thinks the Dow ended up in positive territory today:
Welcome back, down here on the floor with Dylan. Just walking around, hearing some rumors about one of the reasons that this market bounced off the bottom is there are rumors in the market, speculation that the race for the White House is getting tighter. And one trader telling us just moments ago that he thought the reason that the market was so low was when Obama had the lead because he’s gonna raise taxes. And then when things got tighter, things bounced off the bottom. At some point you have to believe this market starts trading on the White House. […]
Don’t underestimate tax increases on capital gains. Capital gains at fifteen percent going to 28 percent, this market’s gonna trade down if we see that.
As is noted in the comments section on Newsbusters, there is speculation that many business owners are expecting to lay off employees in the event of an Obama win. This is not good. Here’s to a McCain win and a stabilizing of the markets.