America Storms The Polls, Markets Celebrate In Advance

Record participation in an historic election: With a never-before seen invasion of polling places, Americans have chosen their new President. On Wall Street, traders are happy about the clear outcome in Obama’s favor. The Dow Jones closed significantly higher.

Long lines began forming at polling stations hours before they opened in many cities across America. There were a few delays because poll workers had incorrect voter lists or the wrong ballots and many voters complained that there weren’t enough voting machines.

Officials anticipated a record turnout of up to 130 million voters. Nearly three-quarters of eligible voters were registered to vote in this election; thirty million took advantage of early voting and had already cast their ballots by election day. Fearing voting irregularities and technical breakdowns, both political parties had thousands of lawyers in place, especially in states where turnout was expected to be low.

Both candidates made a dash to the finish line, visiting numerous states in the quest for votes. After he cast his ballot in Arizona, John McCain planned appearances in two neighboring states, saying he would fight to the finish. His supporters cheered, “Go, John, go!” as he entered the Phoenix polling station. McCain planned to await the election results at his home in Arizona that evening. His running mate, Sarah Palin, had cast her ballot in Wasilla, Alaska shortly before that, saying, “Now tomorrow, I hope, I pray, I believe that I’ll be able to wake up as Vice President-elect.”

Obama and his wife, Michelle, voted early Tuesday morning in Chicago. He appeared relaxed and confident, but restrained due to the fact his 86-year old grandmother, Madelyn Dunham, had passed away the previous day due to cancer. Obama’s one-time rival, Hillary Clinton, voted in Chappaqua, New York, saying she was happy, “to be part of what I hope will be a great next couple of years for America.”

According to the latest CNN polls, Senator Obama led in all those states won by Democrat John Kerry in 2004. He also led or was tied with McCain in a dozen states George W. Bush carried four years earlier. At the website realclearpolitics.com, where results of a dozen polls are averaged together, Obama led McCain by more than seven percentage points.

Voting also affected Wall Street, sending markets sharply upward with across-the-board gains. Markets appeared relieved that the election campaign was finally over, said one trader on the floor in New York.

The Dow-Jones index climbed 3.28 percent to 9625.28 while the S&P 500 index rose 4.08 percent to 1005.75. The NASDAQ rose 3.12 percent to 1780.12 points. Bond markets were uncharacteristically in agreement with stocks and also posted significant advances.

In Frankfurt, the DAX closed five percent higher at 5278 points. Traders were mesmerized by the outcome of U.S. elections. “The election overshadows everything else,” said Joe Saluzzi of Themis Trading. “People know that as soon as the election is over, one more uncertainty in the market will be gone. The market hates uncertainty.”

Investors in Germany also looked for a clear Obama victory. “Markets rise because surveys indicate a clear victory. There won’t be any back and forth as there was last time,” said U.S. market analyst Emil Heppel of the Landesbank Berlin. Sales of financial stocks were especially brisk.

“The U.S. election is high on today’s priority list,” said one trader. Many experts trust Obama to have greater economic competence than his opponent whose strengths lay predominantly in the areas of national and international security. “I can’t say for sure that Obama will be better for Wall Street,” said Heppel, referring to Obama’s stated goal of raising taxes on the wealthy. Obama leads in the latest polls, but many traders are skeptical. “You can always count on the Americans for surprises,” said one trader.