U.S. stocks set for choppy week

Investors expected to continue locking in recent gains

U.S. stocks are expected to come under pressure next week as investors await the outcome of the midterm elections and consolidate gains that have pushed the major indexes close to multiyear highs.
The voting public will have their say on Tuesday on a wide variety of issues in races around the country. Political strategists expect Democrats to gain seats in the House and Senate, but Republicans have been working to ensure that they don't lose more than the 15 House seats or six Senate seats needed to cede control of the chambers to the opposition.
"The market is still going to be choppy and on a downward note regardless of what the outcome is," said Barry Hyman, equity market strategist at EKN Financial Services. Success by the Republicans may lead to an upside pop in stocks in the middle of the week but "within a day or two that would be reversed," said Hyman. Read Election Trading Strategies.
The calendar of economic data will be light, with figures due on consumer credit and sentiment, trade, import prices and wholesale inventories. Most of the reports are slated for release on Thursday.
Hyman said stocks are likely to struggle as traders go back to worrying that the economy is heading for a recession after softer data this week. Last Friday's weaker-than-expected gross domestic product number set the tone for a weak performance on Wall Street, with the major indexes all losing ground.
The market found some support Friday after the Labor Department said the U.S. unemployment rate unexpectedly dropped to a 5 1/2 year low of 4.4%.

A lot of clinical data came out yesterday; going through it now and will post relevant material soon.