Investors Await U.S. High Court Hearing on Election

The uncertainty dogging Wall Street since last month’s presidential election finally may lift this week as investors turn their attention to a U.S. Supreme Court hearing today that could determine the next American president. Over the weekend, the high court granted Republican George W. Bush’s request for a halt in the recount, a setback for Democrat Al Gore. With the U.S. Supreme Court stepping into the fray, investors are expected to count on a swifter resolution, and stocks now appear poised to resume last week’s substantial rally, the first in weeks. Despite two advancing days last week, the tech-heavy Nasdaq composite index is down 15% since the Nov. 7 election.

In addition to the election, economic data such as the widely watched consumer price index and the producer price index also will guide trade this week. Economists on average are forecasting that the PPI, due out Thursday, rose by 0.2% in November, down from a 0.4% gain in October, which is good news. But the core PPI, which excludes volatile energy and food prices, is seen moving up by 0.1% versus October’s decline of 0.1%. Meanwhile, the CPI, coming Friday, is seen repeating October’s 0.25 gain, both for the overall and core numbers. Mounting evidence of an economic slowdown has raised hopes on Wall Street that interest rates could be moving lower. Federal Reserve policymakers meet again Dec. 19.

A number of high-profile technology companies report results this week, most notably software giant Oracle Corp. on Thursday. Consumer electronics retailer Best Buy Co., which reports Tuesday, is likely to be closely watched, too, amid what many see as a dismal shopping season up to now.