“Flying High” – Vista Partners Daily Market Recap 11/7/2018
While Democrats may have been disappointed that they didn’t flip the Senate and Republicans may have been down about losing the House, the markets were flying high today after yesterday’s election. The S&P 500 soared a full 2.11% (58.23 points) while the Nasdaq rose 2.64% (194.79 points). The Dow saw gained 2.12% (542.67 points) as trade closed on Wednesday.
All but one component of the Dow posted gains today, with Procter & Gamble’s (PG) loss of 0.24% being the sole outlier. Other companies saw gains ranging from Disney’s (DIS) modest gain of 0.29% to United Health Group’s (UNH) increase of 4.21%. Atossa Genetics (ATOS) saw neither a net loss or gain with shares still trading at $1.34.
While a bump after midterm elections is common, today’s post-election spike was the largest the S&P 500 and Dow have seen in thirty years.
Sean Darby, a Jefferies analyst, explained that the result of a divided government may have been what helped push stocks higher today. He noted that with gridlock likely, worries of another round of deficit increasing tax cuts that may have been implemented had Republicans kept both houses have been allayed. Similarly, fears that a fully Democratic Congress would do away with the previous tax cuts and changes in regulations have been calmed.
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
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