What the Election Results Mean for Markets

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What’s in Today’s Report:

  • What the Election Results Mean for Markets

Futures are sharply higher as Democrats met pre-election expectations and won solid majorities in the House and Senate.

“Blue Wave” predictions were realized on Election Night, although Democrats failed to win 2/3 majorities in either chamber, creating a divided government and likely policy gridlock (which is historically positive for markets and the reason futures are higher).

With the election behind markets, focus will return to geopolitics (more U.S./Iran diplomatic progress?) and economic data and there are two important reports today: ADP Employment Report (E: 70K), ISM Services PMI (E: 54.7).  Goldilocks readings that met expectations (including in the ISM Services Prices Index) will be the best case scenario for stocks.

Finally, earnings season continues a few more days (practically speaking) and some reports we’re watching today include: ARM ($0.22), MCD ($3.36), NVO ($0.81), QCOM ($1.46), UBER ($0.94), CVS ($1.62), and DDOG ($0.18).

 

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