11/10/2016

Dowsoars150points,surgestonewalltimehighaspostelectionrallycontinues

Dowsoars150points,surgestonewalltimehighaspost
electionrallycontinues
msn.com/enus/news/markets/dowsoars150pointssurgestonewalltimehighaspostelectionrallycontinues/arAAk7yxk

00:05
03:21
ChangesbrewingonWallStreet
U.S.equitiesroseonThursday,withthethreemajorindexesontrackfortheirbestweekoftheyear,as
investorskeptaddingtoriskpositionsfollowingthepresidentialelection.
TheDowJonesindustrialaveragehitanewalltimeintradayhighshortlyaftertheopen,andtradedmorethan
150pointshigher,withIBMcontributingthemostgains.
"ThemomentumacrossthemacrouniversespawnedintheweehoursofthemorningafterDonaldTrump's
shockingvictorycontinues.Tradershavedrivenstockshigherinanticipationofamassivefiscalstimulus,"said
JeremyKlein,chiefmarketstrategistatFBNSecurities,inanote.
"Althoughthedollarhassoaredinthepasttwentyfourhours,goldhasalsoclimbedasinflationexpectations
havestartedtobuild,"hesaid.
TheS&P500gainednearly0.8percent,withfinancialsrisingmorethan3percenttoleadadvancers.Bank
stocksalsosoared,withtheSPDRS&PBankETF(KBE)andtheRegionalBankingETF(KRE)bothrisingmore
than4.5percent.
TheNasdaqcompositegained0.9percent,withtheiSharesNasdaqBiotechnologyETF(IBB)rippingmorethan
3percenthigher.
DonaldTrump'svictoryoverDemocratHillaryClintonsentshockwavesthroughglobalfinancialmarkets,with
Dowfuturesfallingmorethan800pointsaselectionresultskeptcomingin.ButWednesday'scashsessionsaw
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11/10/2016

Dowsoars150points,surgestonewalltimehighaspostelectionrallycontinues

a1percentrally,asinvestorsandtradersunwoundseveraltradesassociatedwithaClintonvictory,particularly
withinthefinancialsandhealthcaresectors.
"Therearethreethingsyouneedtocontemplate.First,thelessonslearnedfromBrexit,"saidArtHogan,chief
marketstrategistatWunderlichSecurities."WeknowwhathappensinaBrexitlikeselloff.Yougetakneejerk
reactiontothedownsideandthenwemovehigherveryquicklywejustspeduptheprocessonthat."
"Second,it'sthefactthatwegotconciliatoryspeechesfrombothcandidates,"hesaid."Third,youhavethe
potentialforgrowthpoliciestobeputforward"withRepublicanscontrollingtheWhiteHouseandCongress.
U.S.Treasuryyieldscontinuedtheirassentaswell,withthetwoyearnoteyieldaround0.911percentandthe
benchmark10yearyieldat2.101percent.
"I'moptimisticthatwewillseefastergrowthoverthenextfouryearswiththecomingchangesinpolicy(hopefully
notradeprotectionandtheeconomicwarsitbrings)butinthecontextofthebondbubblethatisnowleaking
andthecollateralassetpricesbubblesithasspawnedtherewillbeabumpybridgebetweenthecurrent
environmentandfullyenjoyingthebenefitsofthathopedforfastergrowth,"PeterBoockvar,chiefmarketanalyst
atTheLindseyGroup,saidinanote.
Thedollarindex,whichmeasurestheU.S.currency'sperformanceagainstabasketofcurrencies,rose0.4
percentThursday,withtheeuronear$1.089percent.Thesafehavenyenfellmorethan1percentversusthe
greenback,tradingaround106.81.
LukmanOtunuga,researchanalystatFXTM,saidthedollar's"resurgencewasalsocomplimentedbythe
renewedspeculationsoftheFederalReserveraisingUSinterestratesinDecemberthatencouragedbuyersto
attack.Thisweek'saggressivedollarreboundmaybefullyTrumpdrivenwithmoretimeneededforthe
Greenbacktofindsomenormality."
MarketexpectationsforaFedratehikeinDecemberwerearound81.1percentThursdaymorning,accordingto
theCMEGroup'sFedWatchtool.
Onthedatafront,weeklyjoblessclaimstotaled254,000,belowtheexpected260,000.Federalbudgetdatafor
Octoberisalsodueat2p.m.ET.Meanwhile,St.LouisFedPresidentJamesBullardsaidthecentralbankisstill
dueforasingleratehikeandthenhold.
Overseas,Japan'sNikkei225rosenearly7percent,whileEuropeanequitiestradedslightlyhigher,withthepan
EuropeanStoxx600indexgaining0.3percent.Ontapthisweek:
Ontapthisweek:
Thursday
Earnings:Disney,AstraZeneca,Siemens,MichaelKors,Nordstrom,SodaStream,Nvidia,Petrobras,Blue
Buffalo,Sunrun
2:00p.m.Federalbudget
Friday
VeteransDay
Bondmarketclosed,stockmarketnormalhours
Earnings:Allianz,JCPenney,BrookfieldAssetManagement
10:00a.m.Consumersentiment

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