Wall Street Prefers Divided Government

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as Wall Street prefers divided government. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

U.S. stock futures rise, extending the post-election rally

U.S. stock index futures rose in overnight trading on Wednesday as investors hoped that the winner of the U.S. presidential election would be determined soon. Futures contracts tied to the Dow Jones Industrial Average rose 70 points, indicating an opening move gain of 64 points at 9:30 a.m. ET on Thursday.

The S&P 500 (SPY) rose +1.95% today. All 11 sectors gained on the session as shown below in the sector graph.. Gains ranged from +4.08% to less than 1%.

The Dow Jones index added +539 points (+1.94%) to close at 28,386. The Nasdaq climbed +300 points (+2.59%) to settle at 11,890.

Wall Street Prefers Divided Government

Stocks gained more ground on Thursday as the growth sector cheered a potential divided government.

Facebook and Amazon both gained more than 2%. Netflix, Apple and Microsoft each closed more than 3% higher. Shares of Facebook have also gained 12% this week. Amazon and Apple have risen 9.4% and 9.3%, respectively, over that time period while Microsoft has popped 10.3%.

Investors in this high growth sector cheered a potential divided government as it likely means taxes won’t go up, antitrust scrutiny could stay in check and the China trade war doesn’t get any worse.

“Investors are content with a divided-government scenario,” said Brian Jacobsen, senior investment strategist at Wells Fargo Asset Management. “In that scenario, there’s not that much the president can do” in terms of policy.

Meanwhile, the Democrats were projected to retain control of the House, while flipping the Senate became increasingly unlikely.

Key Takeaway…

Jim Cramer on the election: ‘I feel there’s closure coming, and that’s part of the rally’

CNBC’s “Squawk on the Street” team discusses stock performance as the post-election rally rolls on.

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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11/5/20

S&P 500 Sector Graph

Wall Street Prefers Divided Government

S&P 500 (SPY)

Wall Street Prefers Divided Government

Communication Services (XLC)

Wall Street Prefers Divided Government

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Consumer Discretionary (XLY)

Wall Street Prefers Divided Government

Consumer Staples (XLP)

Wall Street Prefers Divided Government

Energy (XLE)

Wall Street Prefers Divided Government

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Financials (XLF)

Wall Street Prefers Divided Government

Real Estate (XLRE)

Wall Street Prefers Divided Government

Healthcare (XLV)

Industrials (XLI)

Wall Street Prefers Divided Government

Materials (XLB)

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Technology (XLK)

Wall Street Prefers Divided Government

Utilities (XLU)

S&P 500 Sector Heat Map

 

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