The markets are soaring today.  While the next president is yet to be decided, its appears clear that there was no blue wave. Nasdaq is the best performing sector up 4.5%, S&P 500 up 3.05%, and the Dow up 2.31%. 

It’s also clear that there will be a stimulus package, although it is likely to be less than democrats were hoping for.  Materials are the lone sector on the S&P 500 in the red, as a massive infrastructure bill is likely not happening soon.

A divided Congress seems apparent and that is good news for Healthcare, which is ripping, up 5.53%. It is also back to risk on with Communication Services, Technology and FAANG back in demand and up big. Facebook (FB) is the best performer of the group and is up over 8%. 

Breadth is decidedly positive, advancers are far outpacing decliners, and 52-week highs are crushing new lows.

Economic services growth continued for the 5^th consecutive month in October, although it was the slowest expansion since May.  October’s ISM Non-Manufacturing PMI declined to 56.6% from 57.8% in September, falling short of estimates of 57.5%.

Anthony Nieves, Chair of the ISM Services Business Survey Committee stated, "Respondents’ comments are cautiously optimistic about business conditions and the economy. There is a degree of uncertainty due to the pandemic, capacity constraints, logistics and the elections.”

• New Orders 58.8% -2.7%
• Business Activity Index 61.2% -1.8%
• Employment Index 50.1% -1.7%
• Supplier deliveries Index 56.2% +1.3%
• Prices Index 63.9% +4.9%
• Inventories 53.1% +4.3%