The Presidential Election tomorrow won’t just determine who sits in the White House. Outcomes in Congress could also have a major impact on fiscal stimulus at the same time coronavirus threatens to shut down the economy again. There’s a Federal Reserve meeting, as well, plus key employment data and more corporate earnings.
First, prominent members of the opposing Democratic party are voicing support. That includes both Nancy Pelosi in the House of Representatives and Charles Schumer in the Senate. Wall Street bigwigs Jamie Dimon and Lloyd Blankfein, both Democrats, agree.
The biggest decliner in the S&P 500 today, for instance, was Mylan (MYL). Disappointing results, manufacturing problems and weak demand hammered the drug maker 24 percent. That was its worst decline in at least a decade
Early leader Tilray (TLRY)
might have fallen asleep after a blistering rally in September, but others have lit up more recently. Aurora Cannabis (ACB) glowed green today, ripping 12 percent to a five-month high.
The NYSE FANG+ index ($NYFANG)
is up 2.7 percent in afternoon trading, its biggest gain since late January. That’s driving a big rally in the Nasdaq-100. Meanwhile the Nasdaq-100’s volatility index ($VXN.X) is crashing as fear leaves the market.
Foot Locker’s (FL) blowout quarter today is the latest example of the trend. Not only did earnings and revenue beat estimates. The key same-store sales metric was also more than twice the expected amount, a sign of successful merchandising and customer engagement.
That said, the bulk of US revenues come from non-American markets. They’re multinationals, so up to 43% of their profits are earned in foreign lands, according to stats in 2016. Also, a good number of companies listed in
US exchanges are global. This means both in the literal and metaphorical sense, adding US shares to your portfolio offers instant diversification benefits. In these discussions, US investment is often pitted against China.