Upbeat Manufacturing Data Gives Stock Futures a Leg Up

Americans are hitting the polls, while investors hope for a clear winner on Election Day

Digital Content Manager
Nov 3, 2020 at 9:22 AM
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Stock futures are significantly higher on Election Day, building off of yesterday's gains as Americans across the country hit the polls and investors hope for a clear winner. Dow Jones Industrial Average (DJI) futures are up roughly 400 points, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are trading well above fair market value as well. The market is also getting a boost from manufacturing data -- the ISM Manufacturing PMI rose to 59.3 in October, its highest level in over two years, indicating the U.S. economy is continuing to expand despite the COVID-19 pandemic.  

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

  • Peloton stock could ride toward a fresh all-time-high.
  • Schaeffer's V.P. of Research, Todd Salamone, dives into the recent volatility spike.
  • Plus, Royal Caribbean extends cancellations; social media giant's management team to remain unchanged; and Wayfair reports blowout earnings. 

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.18 million call contracts traded on Monday, and 734,931 put contracts. The single-session equity put/call ratio dropped to 0.63 and the 21-day moving average stayed at 0.49. 
  2.  Royal Caribbean Cruises Ltd (NYSE:RCL) is down 0.4% in pre-market trading, after the company extended cruise cancellations through the end of 2020, due to the rising number of coronavirus cases across the globe. Year-to-date, RCL is down 57.3%.
  3. Twitter Inc (NYSE:TWTR) is up 1.4% before the bell, after the Securities and Exchange Commission (SEC) determined that the social media giant's management team should remain intact, and suggested changes to the board structure that would give shareholders more input. Later this quarter, Twitter plans to begin its $2 billion share buyback program. Year-over-year, TWTR sports a 33.3% lead.
  4. The shares of Wayfair Inc (NYSE:W) are up 0.1% in electronic trading, after the e-tailer reported better-than-expected third-quarter earnings and revenue. The company attributed the strong results to higher demand and a shift toward online shopping. In addition, membership numbers are up 50% from a year ago. Year-over-year, W is up 205.3%.
  5. Election Day will bring ISM Non-Manufacturing Employment data, as well as factory orders. In addition, Sysco (SYY) will report earnings. 

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European, Asian Markets Rise Ahead of U.S. Election

Stocks in Asia rose again today, reacting favorably to the Reserve Bank of Australia’s decision to lower its cash target rate to 0.1%, and the U.S. presidential election. Hong Kong’s Hang Seng tacked on 2%, followed closely by South Korea’s Kospi which added 1.9%. Elsewhere, China’s Shanghai Composite while Japan’s Nikkei was closed for holiday.

European stocks are also moving higher, as the U.S. presidential election gets underway. In fact, London’s FTSE 100 has so far tacked on 2.1%, while France’s CAC 40 was last seen up 2% thanks to outsized post-earnings gains from lender BNP Paribas. Meanwhile, the German DAX is up 1.9%, despite shares of German mass media firm and European blue chip Prosiebensat.1 falling nearly 4%.

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