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Afternoon Note

Markets Soaring

By Charles Payne, CEO & Principal Analyst
11/4/2020 2:29 PM

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%. 

S&P 500 Index

 +3.01%

 

Communication Services (XLC)

+4.51%

 

Consumer Discretionary (XLY)

+3.01%

 

Consumer Staples (XLP)

+1.15%

 

Energy (XLE)

+2.12%

 

Financials (XLF)

  +0.21%  

 

Health Care (XLV)

+5.53%

 

Industrials (XLI)

+0.59%

 

Materials (XLB)

 

-0.39%

Real Estate (XLRE)

+1.55%

 

Technology (XLK)

+4.22%

 

Utilities (XLU)

+0.08%

 
 

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

Issues:

NYSE

NASDAQ

Advancing

1,988

2,060

Declining

1,069

1,372

52 Week High

86

125

52 Week Low

9

22

Advancing

1.63B

1.41B

Declining

939.7M

654.2M

 

Economic services growth continued for the 5th 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.”


Comments
I think that most of the surge today is nothing more than people taking profits last week, then after the uncertainty in the Congress past, getting back in.

Robert DesRochers on 11/4/2020 3:15:19 PM
I agree with you. The key is delayed reactions to strong financial results and increased guidance.  CP

Charles Payne on 11/4/2020 4:46:06 PM
Thank you for being the voice of reason, calm and optimism in this mess. I'm new to stock investing and have read and highlighted Unstoppable Prosperity and you make me feel like I can do this! May God Bless You!

Sylvia Rogers on 11/4/2020 5:30:26 PM
 

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