The Dividend Cafe - The Dividend Cafe Wednesday - November 6, 2024

Episode Date: November 6, 2024

Market Surge Post-Election: Analyzing a Historic Day In this episode of Dividend Cafe, Brian Szytel reports on a significant market surge following the presidential election on November 6th. The Dow rose by 1,508 points, while the S&P and Nasdaq also saw considerable gains. This increase occurred due to a strong turnout on the Republican side, with Donald Trump winning the Electoral College and potentially securing the 47th presidency. The market saw sectors like financials and industrials flourish, whereas interest-rate-sensitive sectors lagged. Brian also previews upcoming economic data and FOMC meeting outcomes expected to influence the market. 00:00 Introduction and Market Overview 00:23 Election Results Impact on Markets 01:41 Sector Performance Analysis 02:17 Upcoming Economic Events 02:59 Conclusion and Sign Off Links mentioned in this episode: DividendCafe.com TheBahnsenGroup.com

Welcome to the Dividend Cafe, weekly market commentary focused on dividends in your portfolio and dividends in your understanding of economic life. Welcome to Dividend Cafe. This is Wednesday, November the 6th. Brian Seitel with you on a very strong market day. The Dow closed up 1,508 points on the day. That's over 3.5%. The S&P was up 2.5%. The NASDAQ was up almost 3%, 2.95% on the day. These were all record closing intraday highs. And all of this was as a result of a much stronger turnout in the presidential election on the Republican side, with Donald Trump winning far enough votes in the Electoral College to become the next 47th president of the United States of America. And not only that, but won by a quite wide margin.

If the remaining states which are leaning towards Trump go his way, which is Alaska, Arizona, Nevada, he'll end up with 312 of the electoral votes needed to that 270. Also on the popular vote side, something around 67 plus million for Harris and something over 72 million for Trump would be the first Republican to win both the popular vote and the electoral college since 2004, if you remember that with George W. Bush. So there you have it. On top of that, we had the Senate move to Republican control as well, gaining seats there. And while the House is still undecided, there's indications that it may also end as a Republican-controlled House as well, which would be a full red sweep. That part we won't know for the coming days, most likely.

But on the day small caps were up, anything financial-related, particularly with mergers and acquisitions, was up large on the day. was up large on the day. These sectors, along with industrials, all moved because of hopes of higher growth, of deregulation. All of these things moved those sectors. The laggards on the day were things that were more interest rate sensitive, like the homebuilders, obviously with tariffs likely to come down the pike. Anything China-related underperformed, and then some of the large-cap technology names also were laggards on the day. So there you have it. Big day in markets. We'll see what we get tomorrow and follow through. Tomorrow, remember, we have the FOMC meeting that will have a rate cut decision, almost assuredly a 25 basis point rate cut on the Fed funds target. And we'll also have things like initial jobless

claims. Notable also today was the move in the dollar. It was up over one and a half percent. That's a big move in one day. And interest rates moved higher quite a bit. So we had 10-year yield up about 15 basis points to 444. And some of these things, obviously higher interest rates leads to also higher dollar, higher currency. Those two things are tethered together. With that, this would be the strongest day for the S&P in over two years, to give you some context there. But that's it for today. So there wasn't a lot of other economic data out other than the election.

So I'm going to leave it there for you and let you get into your evening and rest up here. And we'll be back with you tomorrow, which will be Thursday. Again, talking probably more follow through on the election along with the FOMC decision and some of the press conference data with you tomorrow. So with that, I'll let you go. Have a nice evening. Thank you for listening. The Bonson Group is a group of investment professionals registered with Hightower Thank you. news, research, analyses, prices, or other information contained in this research is provided as general market commentary and does not constitute investment advice. The bonds to group and Hightower shall not in any way be liable for claims and make no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information, or for statements or errors contained in or omissions from the obtained data and information referenced herein.

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