Dow surged 282, advancers over decliners 2-1 & NAZ jumped up 134. The MLP index went up 2+ to the 257s & the REIT index added 1+ to the 347s. Junk bond funds rose & Treasuries climbed a little higher. Oil slid lower in the 62s & gold added 4 to 1230.
AMJ (Alerian MLP Index tracking fund)
US stocks rise as Republicans keep Senate, Democrats win House
'Economic Iron Curtain' looms for US and China, former Treasury chief Paulson says
Pres Trump declared victory on the morning after the midterm election, even though his Reps saw mixed results that bring the most peril he has ever faced in his political career. Dems won back a House majority, giving the party critical power to investigate the pres Cabinet members. At the same time, the GOP gained seats in the Senate, assuring split control of gov & the necessity for at least some bipartisan cooperation. In a tweet rhis AM, the pres said he “received so many Congratulations from so many on our Big Victory last night, including from foreign nations (friends) that were waiting me out, and hoping, on Trade Deals.” He added: “Now we can get back to work and get things done!” It's unclear what countries he was referring to, but the Trump administration has tried to strike trade deals with China & the EU. It was also not immediately apparent whether he was signaling a hope to work with Dems, whom he falsely attacked as dangerous socialists in recent weeks ahead of the midterms. In a subsequent tweet, he claimed that “those that worked with me in this incredible Midterm Election, embracing certain policies and principles, did very well” while those who did not can “say goodbye!” Trump endorsed numerous candidates across the House & Senate battlefields this year, but those individuals saw mixed results. Some members of Congress who embraced the pres & almost always voted with him still lost their seats. Many populist Dems have aligned with at least some of his trade proposals, which could drive his optimism about reaching agreements. Bipartisan lawmakers have joined with Trump in calling for new deals that will better protect American workers & punish countries such as China for alleged unfair practices. However, Reps & Dems alike have criticized the pres for a mounting exchange of tariffs with Beijing that has threatened to damage the US economy. The White House has already slapped tariffs on more than $200B in Chinese goods & could levy duties on an additional $257B in imports.
Trump claims midterm win despite House loss, threatens backlash for Democrats
club.ino.com/trend/analysis/stock/FOX?a_aid=CD3289&a_bid=6ae5b6f7
The elections are over & even with a few close ones still undecided, the results are pretty much what was expected. There are hopes that an infrastructure bill could be approved & that a divided congress will not impede economic growth. Trade issues with China & the EU remain stuck in the mud, but there is optimism that agreements will be reached. Overall, the stock market is happy with election results.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 62.55 | +0.34 | +0.6% |
| GC=F | Gold | 1,230.90 | +4.60 | +0.4% |
Stocks rose as investors put the uncertainty of midterms behind them. The
Dems took control of the House & the Reps maintained
control of the Senate, a situation that, according to history, is good
for stocks. According to Dow Jones Market
Data, analyzing markets & election data going back to 1970, this
scenario is the best case for stocks one year after an election,
with the broad-based S&P 500 index up 20% on average one
year later. Some investors were concerned the Dems would sweep the Reps
in tight races, in a "blue wave," yet such a landslide did not
occur. As investors digest the race results, many will also turn
their attention to the Federal Reserve, which begins its 2-day
Nov meeting. While no change in interest rates is expected,
policymakers are widely expected to hike rates in Dec.
US stocks rise as Republicans keep Senate, Democrats win House
A new cold war is brewing between China & the
US if both nations don't take steps toward reconciliation, former
Treasury Secretary Henry Paulson warned in a speech that painted a bleak
picture of the future between the 2 sides. Paulson, who helped guide the country out of the financial
crisis & also served as Goldman Sachs CEO (GS), warned that “big parts of
the global economy will ultimately be closed off to the free flow of
investment and trade” should the impasse continue. “And that is why I now see the prospect of an Economic Iron Curtain —
one that throws up new walls on each side and unmakes the global
economy, as we have known it,” he said. The US & Beijing have been involved in an increasingly bitter trade battle
that has seen the US slap tariffs on $200B worth of Chinese
imports. The Trump administration has accused China of stealing American
technology & profiting from unfair trade deals. China has bristled at
the charges and has put is own duties on US goods. Pres Trump & Chinese Pres Xi Jinping are expected to meet at the upcoming G-20 summit. “The U.S. — China strategic interaction is by far the most
consequential in the world. I am very sobered by the trajectory we are
on now,” Paulson said. “And ultimately, I think it could pose a risk to
the very functioning of the international system.” He offered recommendations for each side. On
China, he said the nation should “first, do no harm.” Beyond that, he
said it should work with US allies & partners, open up its
historically closed economy, protect intellectual & technological
property & work with the US on its interests, particularly relations
with North Korea. For the US, he said the country should turn
down the heat on its aggressive rhetoric, reverse its decision to leave
the Trans-Pacific Partnership & open up negotiations with China. “There is no doubt in my mind that how the United States deals with
China, and how they deal with us, will shape the geopolitical landscape
for this century,” Paulson added.
'Economic Iron Curtain' looms for US and China, former Treasury chief Paulson says
Pres Trump declared victory on the morning after the midterm election, even though his Reps saw mixed results that bring the most peril he has ever faced in his political career. Dems won back a House majority, giving the party critical power to investigate the pres Cabinet members. At the same time, the GOP gained seats in the Senate, assuring split control of gov & the necessity for at least some bipartisan cooperation. In a tweet rhis AM, the pres said he “received so many Congratulations from so many on our Big Victory last night, including from foreign nations (friends) that were waiting me out, and hoping, on Trade Deals.” He added: “Now we can get back to work and get things done!” It's unclear what countries he was referring to, but the Trump administration has tried to strike trade deals with China & the EU. It was also not immediately apparent whether he was signaling a hope to work with Dems, whom he falsely attacked as dangerous socialists in recent weeks ahead of the midterms. In a subsequent tweet, he claimed that “those that worked with me in this incredible Midterm Election, embracing certain policies and principles, did very well” while those who did not can “say goodbye!” Trump endorsed numerous candidates across the House & Senate battlefields this year, but those individuals saw mixed results. Some members of Congress who embraced the pres & almost always voted with him still lost their seats. Many populist Dems have aligned with at least some of his trade proposals, which could drive his optimism about reaching agreements. Bipartisan lawmakers have joined with Trump in calling for new deals that will better protect American workers & punish countries such as China for alleged unfair practices. However, Reps & Dems alike have criticized the pres for a mounting exchange of tariffs with Beijing that has threatened to damage the US economy. The White House has already slapped tariffs on more than $200B in Chinese goods & could levy duties on an additional $257B in imports.
Trump claims midterm win despite House loss, threatens backlash for Democrats
Twenty-First Century Fox (FOX) fell short of
estimates for quarterly revenue, hit by the absence of a
major movie hit at the end of the US summer as it prepares to sell the
bulk of its business to Walt Disney (DIS - a Dow stock). Murdoch
agreed in Jun to sell company entertainment assets to DIS for
$71.3B & is nearing completion of the deal after receiving
approval from the European Commission this week, subject to the sale by
Disney of its interests in some news & documentary channels. Revenue at the filmed entertainment division fell 7.5% to $1.82B, missing the estimate of $1.95B. Revenue from the cable division rose 3.6% to $4.35B,
accounting for more than ½ of total revenue in the qtr &
compared to the estimate of $4.48B. Overall revenue rose to $7.18B from $7B, shy of a consensus estimate of $7.23B. After
the DIS sale is completed Fox will carve out a new company,
including Fox News, Business, Sports & the Broadcasting Company which
it expects to have annual revenue of around $10B. The
studio & media company said EPS increased to 69¢ from 46¢ a
year earlier. Excluding items, EPS was 52¢, in-line with the estimate. The stock was up pennies to 46.85.
If you would like to learn more aboiut FOX, click on this link:club.ino.com/trend/analysis/stock/FOX?a_aid=CD3289&a_bid=6ae5b6f7
21st Century Fox quarterly EPS up 6%, revenue rises 2%
The elections are over & even with a few close ones still undecided, the results are pretty much what was expected. There are hopes that an infrastructure bill could be approved & that a divided congress will not impede economic growth. Trade issues with China & the EU remain stuck in the mud, but there is optimism that agreements will be reached. Overall, the stock market is happy with election results.
Dow Jones Industrials
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