Monday, November 9, 2020

🤓 Stocks Have their Best Election Week Since FDR

Good morning. Despite taking a breather on Friday, the stock market had a phenomenal week.
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.
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Good morning. Despite taking a breather on Friday, the stock market had a phenomenal week. The S&P 500 gained just over 7 percent. That's the best performance of an election week since FDR. What's even more amazing is that this move came days into counting votes in an election with no certain outcome over the next President. From the down ballot races, however, it's clear that America remains deeply divided. America's two major political parties may be in need of couple's therapy, but for the stock market, that's the best outcome. Expect some volatility around recounts and lawsuits in the coming weeks, but also talks of stimulus to keep the latest rally going.


Now heres the rest of the news:

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MARKETS
DOW 28,323.40 -0.24%
S&P 3,3509.44 -0.03%
NASDAQ 11,895.23 -0.04%
*As of market close
Stocks took a breather on Friday, took a breather on Friday,
Oil dropped 3.6 percent, closing at $37.40 per barrel.
Gold rose 0.3 percent, closing at $1,953 per ounce.
Cryptocurrencies traded mixed, with Bitcoin last trading at $15,591.

Today's TOP TIPS
Holiday Factors Favor This Niche Industry
Most investors know that the holiday season is when retail companies post their best numbers. Indeed, the term Black Friday may have even come into existence on the notion that the day after Thanksgiving was the first day many stores posted a profit for the year.

This year is also pointing to a strong holiday trend following a year of lockdowns. With many retail stocks already on the radar, one niche area still has some room to run.

» FULL STORY

Insider Trading Report: Sprouts Farmers Market (SFM)
Kristen Blum, a director at Sprouts Farmers Market (SFM), recently bought 2,750 shares. The buy increased her holdings by nearly 10 percent, and came to a cost of just under $51,000.

She was joined by director Joe Fortunato, who bought 13,000 shares, increasing his holdings by 40 percent. That buy came to over $244,000. This is the second buy from directors in the past few months, following a buy in August as well.

» FULL STORY

Unusual Options Activity: Credit Suisse Group (CS)
A move higher in global banking giant Credit Suisse Group (CS) appears likely, given the rise in the March 2021 $11 calls. On Friday, over 5,100 contracts traded hands against a prior open interest of 153, for a 33-fold rise in volume.

The bet expires in 130 days. With shares at $10.65, the company needs to move about 4 percent higher for the option trade to move in-the-money.

» FULL STORY

IN OTHER NEWS
Unemployment drops in October, with a jobless rate of 6.9 percent.
Vimeo raises $150 million, and contemplates making a spinoff.
Tesla launches—and sells out of—its own brand of tequila.
Bentley hopes to have an all-electric vehicle lineup by 2026.
Vermont looks to reopen for ski season, its top tourism draw.
In earnings, Virgin Galactic reports an increased quarterly loss, but plans its next flight this month.
CVS Health posts better-than-expected earnings and raises its full-year outlook.
Uber reports an 18 percent revenue decline, but states that business is picking up.
Square beats on earnings, and reports over $1 billion in quarterly bitcoin revenue.
Electronic Arts misses on earnings, but will initiate a dividend payment to shareholders.

S&P 500 MOVERS
TOP
NWS 8.921%
NWSA 8.286%
MTD 7.01%
ALB 6.37%
MCHP 5.829%
BOTTOM
FLS 9.393%
DXC 7.508%
NLOK 7.402%
EA 7.122%
EA 6.36%

Quote of the Day
The latest jobs report shows the U.S. economy is rebounding quickly from COVID-related shutdowns in the spring with the unemployment already dropping below 7%. Despite strong signals that many Americans are getting back to work, however, the number of coronavirus cases is rising and that may mean new restrictions on daily life that could further accelerate a shift to a more digital economy and increase calls for additional government stimulus.
- Tony Bedikian, Head of Global Markets at Citizens, on why further stimulus may be needed, and why stay-at-home stock plays may still have some growth ahead.

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In fact, I believe that investors who set themselves up to profit from it could turn every $500 invested into as much as $1.5 million.

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