Premarket: Apple is green

apple premarket green 11-9From the wsj’s “Stock Futures Rally After Biden Wins Presidency” posted early Monday:

U.S. stock futures rose Monday after Democrat Joe Biden’s electoral victory gave markets fresh impetus.

Futures tied to the S&P 500 gained 1.3%, suggesting that last week’s advance, the strongest since April, will resume after the New York opening bell. Contracts linked to tech-heavy Nasdaq-100 climbed 1.7%.

The new leg of the rally in stocks reflects the reduced uncertainty surrounding the U.S. elections, combined with expectations that a Democrat-controlled White House and divided Congress could result in moderate policy measures on taxes and spending.

“The market-friendly bits of Biden will be in place: the lack of volatility, more clear foreign policy,” said Altaf Kassam, head of investment strategy for State Street Global Advisors in Europe. “But at the same time, the bits that the market was worried about—higher taxes and more regulation—will not happen. That’s what’s been driving the market higher.”

My take: Heavy betting on divided government.

6 Comments

  1. Gregg Thurman said:
    Looks like we may get a gap up at the Pen today.

    0
    November 9, 2020
    • Dan Scropos said:
      Pretty sure Gregg meant “open.”

      2
      November 9, 2020
      • Gregg Thurman said:
        Up voted your response Dan.

        0
        November 9, 2020
  2. Steven Philips said:
    Gregg, I thought maybe your past had finally caught up with you! 🙂

    PED, your take is my take. Still need to let EVERYTHING settle out.

    1
    November 9, 2020
  3. Bart Yee said:
    Because of Pfizer’s vaccine news, rotation out of Tech shares today, with Apple Microsoft, Netflix and AH Google down today.

    However, this vaccine still has not finished its phase 3 trials but likely to receive emergency use approval by December. Then it will take weeks to months to build stock and inventory for distribution and use. After some widespread use, we will essentially enter a user trial and testing of any side effects.

    0
    November 9, 2020

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