The downturn in the Market that was expected if Trump won is just not happening. The Dow Jones closed 200 points higher today.
Watch:
Tuesday the Markets took a hit as speculators had assumed a Clinton win. Now that the investors are adjusting for a Trump Presidency, the Markets are moving up, up, up.
Donald Trump’s victory over Democrat Hillary Clinton sent shock waves through global financial markets, with Dow futures falling more than 800 points as election results kept coming in. But Wednesday’s cash session saw a 1 percent rally, as investors and traders unwound several trades associated with a Clinton victory, particularly within the financials and health care sectors.
U.S. equities closed mixed on Thursday as investors repositioned their portfolios following the presidential election.
The Dow Jones industrial average hit a new all-time intraday of 18,873.6, and closed more than 200 points higher, with IBM and Goldman Sachs contributing the most gains to the tune of 34 points and 52 points, respectively.
“Equities are adjusting to change and uncertainty with a Trump presidency,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “There still needs to be more clarity and that’s going to impact equity prices.”
The Nasdaq composite underperformed, erasing earlier gains and briefly falling 2 percent as the iShares Nasdaq Biotechnology ETF (IBB) pared initial gains while the so-called FANG stocks (Facebook, Amazon, Netflix and Alphabet) fell. The index closed around 0.8 percent lower.
“These are expensive stocks that don’t like higher interest rates. These have been the leaders and the leaders are getting whacked,” said Peter Boockvar, chief market analyst at The Lindsey Group. He said that FANG stocks “don’t like higher interest rates because higher interest rates exposes things that are overvalued.”
The S&P 500 gyrated between gains and losses, closing about 0.2 percent higher, with financials rising 3.7 percent to lead advancers. Bank stocks rose, with the SPDR S&P Bank ETF (KBE) holding about 4 percent higher after hitting its highest level since September 2008.
Donald Trump’s victory over Democrat Hillary Clinton sent shock waves through global financial markets, with Dow futures falling more than 800 points as election results kept coming in. But Wednesday’s cash session saw a 1 percent rally, as investors and traders unwound several trades associated with a Clinton victory, particularly within the financials and health care sectors.
“There are three things you need to contemplate. First, the lessons learned from Brexit,” said Art Hogan, chief market strategist at Wunderlich Securities. “We know what happens in a Brexit-like sell-off. You get a knee-jerk reaction to the downside and then we move higher very quickly; we just sped up the process on that.”
“Second, it’s the fact that we got conciliatory speeches from both candidates,” he said. “Third, you have the potential for growth policies to be put forward” with Republicans controlling the White House and Congress.
Investors were also on the lookout for any updates on who would compose Trump’s cabinet. Earlier on Thursday, CNBC reported that Trump’s advisers have floated the idea of naming Jamie Dimon as Treasury secretary, according to two people familiar with the matter.
Read more: CNBC
It’s all Trump-related:
There was an interesting chant heard on the floor:
The S&P 500 also closed in strong shape after an early morning spike in the first hour of trading. It was up four points from the previous day’s close.
Excited traders chanted ‘Ding Dong the witch is dead’ on the floor as they watched it hit a one-month high on Wednesday at the exact moment Hillary Clinton was delivering her concession speech.
Read more: Daily Mail
This deserves a musical tribute by none other than Democrat loudmouth Barbara Streisand:
That’s making us want to get up and dance in the ClashDaily newsroom! (That doesn’t happen with Streisand songs… ever.)
The Market is reacting to a Trump Presidency.
It’s already begun.
Trump is keeping his word.
He’s ‘Making America Great Again’!
