Stocks reacted as the Democrats took back control of the House of Representatives
The Dow ended more than 500 points higher today, as stocks reacted to U.S. midterm elections. Several sectors popped on favorable results, with UnitedHealth (UNH) leading insurers after three states voted to expand Medicaid programs, and many energy stocks gaining ground on a key vote in Colorado, even as oil prices fell to an eight-month low. Tech and FAANG stocks also moved higher, amid expectations for a Democrat-controlled House of Representatives to curb President Donald Trump's quest to go after giants like Amazon (AMZN). Elsewhere in Washington, D.C., Attorney General Jeff Sessions tendered his resignation, though the surprise did little to take the wind out of stocks' sails.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJI - 26,180.30) jumped 545.3 points, or 2.1%, ending above 26,000 for the first time in nearly a month. All but Procter & Gamble (PG) stock finished higher, with Caterpillar (CAT) pacing the 29 advancing blue chips with a 4.5% gain, and the former suffering a 0.2% loss.
The S&P 500 Index (SPX - 2,813.89) added 58.4 points, or 2.1%, and the Nasdaq Composite (IXIC - 7,570.75) managed a 194.8-point, or 2.6%, gain.
The Cboe Volatility Index (VIX - 16.36) edged down 3.6 points, or 17.8%, for its lowest close since Oct. 9.
5 Items on our Radar Today
- Proposition C, San Francisco’s polarizing homeless tax measure that had the tech industry at odds, passed by 60% affirmative votes. Prop C, which was notably supported by Salesforce (CRM) CEO Marc Benioff, will raise the taxes on companies grossing over $50 million in annual earnings to help the city’s homeless population. Square (SQ) CEO Jack Dorsey publicly opposed the measure, saying it would unfairly tax some financial service companies. (CNBC)
- General Electric (GE) marked its lowest close since 2009, sitting out the broader equities rally. The stock sank 2.4% today, after yesterday snapping a nine-day losing streak. (Marketwatch)
- Why options bulls flocked to DaVita after midterms.
- Analysts blasted this optical equipment stock after earnings.
- Drug stock Foamix just hit its bullish stride after upbeat data.
Data courtesy of Trade-Alert
Oil Drops on Another Supply Increase
Oil prices sunk to the lowest they’ve been in eight months, as data showed an increase in crude stockpiles for the seventh straight week and a record production of 11.6 million barrels per day. Oil for December delivery fell 54 cents, or 0.9%, settling at $61.67 per barrel.
December gold futures enjoyed their first gain in four sessions, as the U.S. dollar softened post-midterms. It climbed $2.40, or 0.2%, to settle at $1,228.70 an ounce.