US stock rises even higher as Trump-Biden race goes extra innings

US stocks climbed for a third session on Wednesday, even as the presidential race between President Donald Trump and former Vice President Joe Biden was close to being called in several states.

With the vote still counting, the Federal Reserve began its two-day policy meeting with a statement on Thursday, while economic data showed a slight increase in US private sector employment in October compared to the previous month.

How are stock benchmarks performing?

Dow Jones Industrial Average DJIA,
+ 2.89%
The stock jumped 552 points, or 2%, to trade near 28,032 above its 50-day moving average, while the S&P 500,
+ 3.36%
Was up 87 points or 2.6% at around 3,456. Nasdaq Composite Comp,
+ 4.35%
Jumped 408 points, 3.7%, to around 11,568.

On Tuesday, the stock market closed up sharply, with the Dow rally up 554.98 points, or 2.1%, to 27480.03, its biggest one-day point and percentage gain since July 14. The S&P 500 gained 58.92 points, or 1.8. The% rose to 3,369.16. . The Nasdaq rose 202.96 points or 1.9% to 11,160.57 points.

What is driving the market?

Some major states will now determine the 2020 US presidential race that has become much closer than pollution and market participants, with many states still counting votes on Wednesday morning.

The votes were likely to be counted in Pennsylvania, Michigan and Wisconsin on Wednesday, with both candidates having a way to secure the required 270 electoral college votes.

See: Biden led Trump to presidential control and US Senate still in doubt

It is unclear whether an election may have long-term recessionary implications for equity. The market collapsed during a legal battle over the vote between former Vice Presidents Al Gore and George W. Bush in 2000, but this year some uncertainties may be priced into stocks.

The election results so far have also reduced the likelihood of a so-called Blue Wave, where a Democrat takes over the White House and the party controls both chambers of Congress. Market watchers saw that result as the key to another round of financial support for workers and American businesses.

CFRA chief investment strategist Sam Stowal said that for all, the market could be comfortable with the outcome on the possibility of cursory competition. “Familiar is what Wall Street likes. Wall Street is able to understand what is happening. This uncertainty is not what Wall Street likes.”

Legal challenges and expanded uncertainty could also cost the market, Stowell thinks, and high-growth at Tech-Heavy Nasdaq could point to investor relief that a solidly Democratic government in regulating big technology giants like Amazon Will not be able. Com Inc., AMZN
+ 5.92%
Or Google GOOG,
+ 7.09%

+ 7.20%.

Investors bid Tech shares on Wednesday as Wall Street to help lead the market from the depths of the coronavirus virus epidemic, particularly raising new cases in the new Midwest states.

With the alarming rise in nationwide cases and the number of people hospitalized with COVII-19 reaching record highs in the states, Americans voted Tuesday under the shadow of a resurgence in the coronovirus epidemic.

See: Coronavirus infection increases in 47 states

Nevertheless, investors need to focus on the coronovirus epidemic as an election result, Stowall of the CFRA said in an interview. “This new wave is worse than what we saw in March. The real question is what kind of impact it will have on the economy and corporate profits and expectations. ”

Read: Market Fluctuations: Here’s what the election will mean for stocks, bonds and dollars

Researchers at Wolf Research, led by chief investment strategist Chris Seneck, said the market could try to price in the likelihood of a Biden win but a weak prospect for more adequate relief to counter a Republican congressional and coronovirus epidemic.

“A Biden / GOP Senate scenario seems to be priced this morning,” Wolff Research wrote. “Our feeling is that it reflects expectations for a disappointing financial stimulus bill (GOP senator $ 500 billion – $ 1 trillion), while the Fed ramps up [quantitative easing] As an offset, “he wrote.

Meanwhile, the Fed is set to give a policy update at 2pm on Thursday, a day later than usual due to the election.

On Wednesday, there was a mixed trend in US economic data. A monthly report on private employment from automated data processing, a precursor to a closely watched Department of Labor report on Friday, was far weaker than expected, with 365,000 jobs created in October, versus expectations for a gain of 600,000.

The international trade deficit split in September.

But two readings on the services sector were mixed: one from the IHS market showed the fastest pace of growth since 2015, while the Institute of Supply Management report more closely followed the ISM Services Index, since May. Was the slowest.

Which stocks are in focus?
  • Ride-share companies saw their shares rise on Wednesday after winning a legislative battle in California. This allowed them to classify themselves as independent contractors, not employees. Shares of Uber Technologies
    + 13.50%
    And Lyft
    + 11.41%
    Both were double digits.

  • Wendy’s Company
    Shares were down 5.7% after Wall Street’s hopes for Q3 revenue disappeared.

  • Hilton Worldwide Holdings Inc.
    + 5.28%
    The most recent quarter saw profits coming in, the company said before the bell. Shares were up more than 4% that afternoon.

  • Bank shares also fell along with bond yields. Shares of JP Morgan Chase & Company. JPM,
    Were down about 2%, Bank of America Corp
    The stock slipped more than 3.0%, and Citigroup Inc.
    Shares were down 1.1%.

What are other markets doing?

TMUBMUSD10Y, yield on 10-year Treasury note
About 13 basis points fell to 0.771%, as investors reconsidered the “rebalancing trade”. Yield and loan prices move in opposite directions.

Stoxx 600 Europe Index SXXP,
+ 2.05%
Jumped 2.1%, while London’s FTSE 100 UKX,
+ 1.66%
Was up 1.7%.

Oil futures boom with US benchmark CL.1
+ 3.16%
2.7% to $ 38.68 per barrel, while gold futures GC00,
The more robust fiscal expenditures rolled down 0.5% to $ 1,901.60, with a lower probability of decline.

ICE US Dollar Index DXY,
One gauge of the currency was down 0.1% against a basket of six major rivals.

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