Wednesday's Market Recap - Investors Cheer Divided Government With Strong Post Election Rally.
What is The Premarket Telling Us?
US stock futures are all positive at this hour, following the US Presidential elections yesterday, the results of which are so far unknown, as the ballots are still being counted this morning. Dow futures are up 14 points, Nasdaq futures sharply higher at 239.50 points, and S&P futures are 21 points.
On The Bond Desk:
The US 10 Year Bond Yield at 0.88%, up 0.03%.
Currency Desk:
Euro dollar: 1.17
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $38.69/barrel, up 2.73%.
On the Earnings Calendar:
Qualcomm reports earnings after the close of trading today.
In M&A News:
No to report.
What About The Asian And European Markets?
Major Asian markets closed mixed in their session. Japan (Nikkei 225) gained 1.72%, Shanghai rose 0.19%, Hong Kong (Hang Seng) fell 0.21%.
Major European markets ended higher. German (DAX) gained 1.95%, France CAC 40 up 2.44%, London FTSE 100 gained 1.67%.
Market And Sector Dynamics
Like yesterday's election day, markets opened sharply higher with the Dow up 200 points, Nasdaq soared 300 points, and the S&P rose 53 points. WTI crude oil opened at $38.30/barrel, and the US 10 Year Bond Yield 0.761%.
An hour after the open, the Dow rocketed over 600 points and remained at those high levels for most of the session. Investors are cheering what appears to be a divided government, with a potential Biden, as President, a Democratic House, and a GOP controlled Senate. Shares of big technology companies (the FAANG) soared.
Seven of the eleven S&P sectors ended the day with sharp gains, led by Healthcare, Communication Services, Consumer Discretionary, Real Estate, Energy, and Consumer Staples.
Factors Influencing Today's Market
So far no winner has been declared in yesterday's Presidential elections. Votes in many critical states are still being counted.
Asian and European markets traded solidly higher in their sessions.
US 10 Year Bond Yield closed at 0.766%, down 14.48%
WTI crude oil closed today at $39.13/barrel, up 3.90%.
The ADP Employment Report for October shows an increase of 365,000 private payroll jobs, versus 600,000 expected.
Market Close Volume Traded And Advance Decline Ratio
Markets staged a post-election day rally today, even in the absence of a declared President. The Dow surged 367.73 points, Nasdaq soared 430.21 points, and S&P gained 74.28 points. Total NYSE volume traded, a moderate 4.83 billion shares. Advancing shares outpaced Declining shares by 1.22:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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