Friends
Wow, wow, wow. What a day! You obviously know what happened with the election, but the action we have seen in the markets this week is amazing. In anticipation of a divided government with Clinton as President and a Republican Congress we had rallies on both Monday and Tuesday. As the Trump victory began to materialize last night, stock futures plummeted. By late last night the Dow futures were sporting an 800 point loss, and the S&P futures triggered the circuit breaker by falling 5%. The fear was building, until the realization that President Trump was going to have both a Republican House and Senate. The futures then turned and recovered about half of their losses. After toned down and conciliatory speeches, stocks not only eliminated last night’s losses, but rocketed to near all-time highs. The Dow itself saw an 1100 point swing from overnight futures trading to today’s highs. Just an amazing day.
By the close, the Dow Jones Industrial Average was up 256 points to finish the day at 18,589. The S&P 500 was up 23 points to close at 2163. Gold prices were all over the place, but by the close were mostly unchanged at $1,275 per ounce. Oil was up $.30 to trade at $45.28 per barrel WTI. Natural Gas was up $.06 to trade at $2.693. Bonds have really been damaged as the 10 year Treasury note yield has soared to over 2.07% (remember, not long ago we were under 1.50%).
The volatility and change in emotion was fascinating to watch as the Trump victory was unfolding. It will be very interesting to see how this plays out over the next days and weeks. What has changed, and what has not. There are a lot of questions to be answered in the days ahead. Stay tuned and we’ll try to provide the answers.
Have a nice evening everyone.
