Markets jump on hopeful expectations for the election outcome

Dow shot up 555, advancers over decliners 5-1 & NAZ advanced 202.  The MLP index added 1+ to the 112s & the REIT index went up 8+ to the 351s.  Junk bond funds fluctuated & Treasuries were sold while stocks rallied.  Oil rose almost 1 to the high 37s, highest finish in a week on hopes for OPEC+ will keep lid on production, & gold went up 15 to 1908 (more on both below).

 

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Approximately 700 employees at Nike's (NKE), a Dow stock, world headquarters in Beaverton, Ore, will be laid off in a "permanent reduction of workforce" by Jan 8, 2021.  Kristen Lupo, VP of Total Rewards, said that bumping rights will not be available for affected employees & that those not represented by a labor organization will be notified directly.  The move, originally announced in Aug, previously estimated at least 500 employees would be laid off, resulting in termination costs of approximately $200-250M.  Recently, however, the athletic apparel maker seems to be rebounding.  It posted a solid quarterly profit driven by soaring online sales of its sneakers & workout apparel.  EPS was 95¢, for the 3-month period ending Aug 31, up 11% from the same 2019 qtr.  The company's digital sales rose 82%, helping offset declines in its wholesale business & company-owned stores.  Meanwhile, revenue for the qtr held steady at $10.6B, a 1% decline from the previous year.  The stock rose 2.25.
If you would like to learn more about NKE, click on this link:
club.ino.com/trend/analysis/stock/NKE?a_aid=CD3289&a_bid=6ae5b6f7

Nike to cut 700 jobs at its Oregon headquarters by 2021

Fox Corp (FOX) profit & revenue rose for the latest quarter, booking gains at its cable network programming segment & political advertising ahead of the presidential election.  The company reported fiscal first qtr ended Sep 30 EPS of $1.83, compared with 80¢ in the comparable period last year.  Excluding special items, EPS was $1.18, ahead of 76¢ expected.  FOX said it recognized gains related to cash payment received from Walt Disney (DIS), a Dow stock, related to the reimbursement of FOX's prepayment of its tax liabilities from the DIS divestiture of certain assets.  Revenue rose 1.9% to $2.72B, topping the frecast of $2.58B.  Operating expenses fell to $1.17B from $1.47B.  Affiliate revenue increased 10% with cable network programming revenue rising to $1.33B from $1.29B.  Among those driving the quarterly growth was the company's Fox News Channel, Exec Chair Lachlan Murdoch said.  Television revenue fell $6M to $1.35B as advertising declined.  Advertising revenue fell 7% due to a pandemic-related pullback in 5 sporting events.  Sports sublicensing revenue at the cable network programming segment also fell due to Covid-19.  The stock slid back 19¢.
If you would like to learn more about FOX, click on this link:
club.ino.com/trend/analysis/stock/FOX?a_aid=CD3289&a_bid=6ae5b6f7 

Fox profit, revenue rise driven by cable network programming, political ads

Gold futures settled at their highest in a week focused on uncertainty around the outcome of the US elections & the Federal Reserve's 2-day policy meeting this week   Gold for Dec climbed by $17 (1%) to settle at $1910 an ounce, after gaining 0.7% yesterday.  Today's settlement was the highest for a front-month contract since Oct 27.  Gold has seen choppy trade in recent weeks but has managed to hold above $1900 yesterday amid concerns about the outcome of the US election & the spread of COVID-19 in many. states.  Bullion remains supported by worries about expected delays in election results due to the size & scope of mail-in voting in most states.  Fears of civil unrest or a contested election result, where the apparent loser declines to concede defeat, also are viewed as buttressing prices for gold & other precious metals.

Gold prices mark 1-week high as investors brace for U.S. Election Day outcome 

Oil futures rose, with US prices settling at their highest in a week, boosted by expectations that OPEC+ & its allies may delay production curbs set to begin at the start of the year.  OPEC meets at the end of Dec.  West Texas Intermediate crude rose 85¢ (2.3%) to settle at $37.66 a barrel.

Oil futures settle at highest in a week on bets OPEC+ may delay output curbs

The stock market had a spectacular rally today.  The Dow closed near session highs & is a relatively modest (1K) under setting a new record.  Investors expect the election outcome will aid the economy even though a number of states may delay final results for some time.  At the same time, the virus shows no sign of giving up & going away.  After going over 2K, gold keeps bobbing around 1900 where it can not find traction.