Benchmarks finished modestly higher on Tuesday as investors eagerly waited for results of the closely watched presidential election. Investors bet Hillary Clinton would win the election, as it represents more stability for markets than a Trump presidency. The election saw considerable character assassination and severing of diplomatic ties, making it one of the most action-packed events in the recent past.
For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.
The Dow Jones Industrial Average (DJI) advanced 0.4%, to close at 18,332.74. The S&P 500 also gained 0.4% to close at 2,139.56. The tech-laden Nasdaq Composite Index closed at 5,193.49, increasing 0.5%. The fear-gauge CBOE Volatility Index (VIX) surged 13.1% to settle at 21.16. A total of around 7 billion shares were traded on Tuesday, higher than the last 20-session average of 6.7 billion shares. Advancers outpaced declining stocks on the NYSE. For 55% stocks that advanced, 41% declined.
Wall Street Awaits US Election Results
U.S. stocks rose for a second straight session on Tuesday as investors largely priced in a victory for Democrat Hillary Clinton. Republican candidate Donald Trump did accuse Clinton of being corrupt and requested voters to “deliver justice at the ballot box”, but, Clinton got a clean chit from the FBI for the email controversy that had marred her campaign in recent times. Clinton was being investigated on her use of a private server and handling of classified information while she was the state secretary.
Financial markets in general view a Clinton win as the better outcome in today’s election, while Trump’s stances on foreign policy, trade and immigration are less certain. According to the final Reuters/Ipsos States of the Nation project, Clinton has a whopping 90% chance of making it to the White House. The survey also mentioned that any upset by Trump is only possible if there is an unlikely turnout of white, black and Hispanic voters in six or seven states.
The Real Clear Politics Average of national polls also showed Clinton leading Trump by 2.2%, a much slimmer margin. Meanwhile, the NBC News/Wall Street Journal gave a point lead to Clinton over Trump. This is a sharp comedown from the 11-point lead held by her last month. The Washington Post/ABC tracking poll too has given Clinton a five-point lead (read more: 5 Stocks to Buy as Election Heads for Close Finish).
During the two-day rally, the S&P 500 nearly made up ground lost over the previous nine consecutive losing days. All the S&P 500 sectors ended in the green on Tuesday, with utilities gaining the most. The Utilities Select Sector SPDR (XLU) advanced 0.8%. Some of its key holdings including NextEra Energy, Inc. (NEE - Free Report) and Duke Energy Corporation (DUK - Free Report) increased 0.4% and 0.7%, respectively. NextEra Energy possess a Zacks Rank #2 (Buy), while Duke Energy have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks That Made Headlines
DISH Network Misses on Earnings and Revenues in Q3
DISH Network Corp. (DISH - Free Report) declared disappointing financial results for the third quarter of 2016 with the bottom and the top line missing the Zacks Consensus Estimate. (Read More)
TripAdvisor Q3 Earnings & Revenues Miss Estimates
TripAdvisor Inc. (TRIP - Free Report) reported adjusted third-quarter 2016 earnings of 41 cents per share, which missed the Zacks Consensus Estimate by a penny. (Read More)
Viacom Q4 Earnings Beat, Revenues Miss
Viacom Inc. (VIAB - Free Report) reported better-than-expected earnings in the fourth quarter of fiscal 2016. However, the company’s top line missed the Zacks Consensus Estimate. (Read More)
Amdocs Q4 Earnings in Line, Revenues Top Estimates
Amdocs Ltd.’s (DOX - Free Report) fourth-quarter fiscal 2016 (ended Sep 30, 2016) earnings (on an adjusted basis) of 83 cents a share were in line with the Zacks Consensus Estimate. (Read More)
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