Dow Jones Industrial Average Comeback Continues Amid Election Excitement

How Elections Impact the Dow

Alex Eppstein
Nov 8, 2016 at 4:23 PM
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The Dow Jones Industrial Average (DJIA) strung together a second straight win, as yesterday's relief rally spilled into Election Day. As America headed to the voting booth, traders digested a cautious note on policy normalization from Chicago Fed President Charles Evans and a mixed Job Openings and Labor Turnover Survey (JOLTS). Whether the Dow can make it three in a row tomorrow will largely depend on the outcome of the presidential election, with stocks expected to react more favorably to a Hillary Clinton victory.

Continue reading for more on today's market, including:

The Dow Jones Industrial Average (DJIA - 18,332.43) popped 72.8 points, or 0.4%, recovering nicely from an early dip. Twenty-seven of 30 Dow stocks gained, led by Travelers Companies Inc's (NYSE:TRV) 2.5% jump. The worst off of the three blue-chip losers was DuPont (NYSE:DD), down 0.4%.

The S&P 500 Index (SPX - 2,139.53) added 8 points, or 0.4%, while the Nasdaq Composite (COMP - 5,193.49) narrowly bested its peers, up 27.3 points, or 0.5%.

The CBOE Volatility Index (VIX - 18.74) managed a 0.03-point, or 0.2%, win, despite the broad-market rally.

Indexes closing summary November 8
NYSE and NASDAQ stats November 8

5 Items on Our Radar Today

  1. According to Sen. Charles Grassley (R-Iowa), the watchdog office of the U.S. Department of Health and Human Services (HHS) notified the Centers for Medicare and Medicaid Services (CMS) in 2009 that Mylan NV's (NASDAQ:MYL) EpiPen -- the emergency allergy treatment at the center of a price-gouging scandal -- was misclassified as a generic drug. While it's unclear why the matter wasn't addressed, the misclassification allowed Mylan to underpay rebates owed to federal and state Medicaid programs for seven years. (Reuters)
  2. Shareholders of gun manufacturer Smith & Wesson Holding Corp (NASDAQ:SWHC) will vote on Tuesday, Dec. 13 whether to change the company's iconic name. The company's board of directors has already approved the name "American Outdoor Brands Corp." (Chicago Tribune)
  3. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) crashed post-earnings, as did this fellow biotech.
  4. Option bulls barraged red-hot Freeport-McMoRan Inc (NYSE:FCX).
  5. This retailer's post-earnings plunge drew a rare crop of put players.

Quarterly Earnings November 8

Unusual Options Activity November 8
Data courtesy of Trade-Alert

Commodities:

Oil futures edged modestly higher, shrugging off a stronger dollar on the Organization of the Petroleum Exporting Countries' (OPEC) prediction that demand for the commodity will rise over the next three years. By day's end, December-dated crude futures were up 9 cents, or 0.2%, at $44.98 per barrel.

Gold sank amid concerns that a Clinton presidency could boost stocks and dampen demand for safe havens. Specifically, gold for December delivery lost $4.90, or 0.4%, to finish at $1,274.50 per ounce.

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