Wednesday's Market Recap - Dow Records Strong 500+ Point Post Election Day Rally.
What is The Premarket Telling Us?
7:00 PM.
Post the midterm election of yesterday, we now have divided government once again. The Democrats have regained the House of Representative, while the Republicans have held on to the Senate. Dow futures are up 158 points, Nasdaq futures gained 76 points, and the S&P futures rose 21 points.
On The Bond Desk:
The US 10 Year Bond Yield at 3.21%, down 0.01%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $63.15/barrel, up 1.51%.
On the Earnings Calendar:
Strong Q3 Earning performance from Humana. The company beat earnings and revenue performance, and raised guidance.
Square report Q3 Earning, after the closing bell this evening.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were lower in today's session. Japan (Nikkei 225) down 0.28%, Shanghai fell 0.68%, Hong Kong (Hang Seng) down up 0.10%.
Major European markets were up in today's session. German (DAX) up 0.79%, France CAC 40 rose 1.11%, London FTSE 100 was up 1.09%.
Market Direction And & Sector Dynamics
Stocks opened the trading day solidly higher. Investors are feeling good after yesterday's election. The Dow gained 219 points, Nasdaq rose 70 points, and the S&P added 26 points, as investors cheer the election results. This mornings rally was broad-based with all eleven S&P sectors trading higher, and all but two, (Boeing, P&G, and Disney), of the Dow 30 Component stocks higher.
Today's post election rally gained strength throughout the session, as investors cheered the perception of divided government, the successful Amendments,in a few States legalizing medical, and recreational use of marijuana, as well as the failure of an Amendment in Colorado that would restrict drilling, a specific distance from homes, schools, or water sources.
Market tone was extremely positive, with all eleven S&P sectors, closing the session with solid gains. Today's sector leaders were, consumer discretionary, healthcare, technology, communication services, basic materials, industrials, energy, and financials.
Factors Influencing Today's Market
Removal of the election uncertainty from the wall of worry, helped stocks rally today.
Divided government not seen as a problem by markets. With the House of Representative flipping to the Democrats, and the Senate held by the Republicans.
Strong Q3 Earnings performance from Humana, which helped to push shares of healthcare companies higher today.
This week's EIA Petroleum Status Report shows crude oil inventory build of 5.8 million barrels for a total 431.8 million barrels.
The Fed/FOMC begins its November meeting today, with a decision on interest rates to follow tomorrow. No rate hike is anticipated.
Asian markets were lower overnight, while European stocks were higher in their session.
Market Close Volume Traded And Advance Decline Ratio
At the end of the session, all the indices racked up major gains. The Dow surged 545.29 points, Nasdaq soared 194.79 points, and the S&P gained 58.44 points.Total NYSE volume traded, a moderate 3.84 billion shares. Advancing shares outpaced Declining shares better than 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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