For the first time ever, the Dow closed above 44,000 and the S&P 500 topped 6,000
It was another wild week on Wall Street. Fresh off of post-election buzz, the Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) closed above 44,000 and 6,000, respectively, both marking historic milestones. Momentum quickly waned, however, as investors turned their attention towards key inflation data. October’s consumer price index (CPI) and the producer price index (PPI) readings were roughly in line with economists’ estimates. Following the inflation readings and retail sales data, all three indexes are heading for weekly losses, the SPX and Nasdaq Composite (IXIC) on track for their worst since September.
Elsewhere, NBC News called the race for the U.S. House of Representatives, giving Republicans control of both the house and senate, while Federal Reserve Chair Jerome Powell said the central bank has time to decide its approach toward interest rates.
Even More Election Stocks, Sectors to Monitor
If you’re wondering how to trade options after the election, then look no further. If you’re looking for insight into certain sectors that are moving following Trump’s victory, then we’ve also got you covered.
Elon Musk has been a vocal supporter of the president elect, and shares of Tesla (TSLA) have benefited immensely since Donald Trump’s victory. It’s a completely different story for China-based equities, however, as traders try to gauge the impact that Trump’s tariff plans will have. Elsewhere, gold prices in the U.S. soared to record highs, while the artificial intelligence (AI) rally took a breather as OpenAI waited to present its official “blueprint for U.S. AI infrastructure” in Washington D.C.
Analyst Notes to Parse
While the election was the main market driver last week, analysts had their eyes on other factors. For instance, Deutsche Bank downgraded shares cybersecurity software firm Okta (OKTA) on slower-than-expected growth and mixed customer feedback. At Redburn Atlantic, Starbucks (SBUX) was downgraded amid concerns that the outlook for the coffeehouse chain operator didn’t match the costs. Twilio (TWLO), meanwhile, hit two-year highs after an upgrade at Wells Fargo, and BWX Technologies (BWXT) hit record highs following a bull note at BofA Global Research.
Retail Earnings Due Before Holiday Season
Last week’s inflation numbers are in, meaning traders can now shift focus to manufacturing and services data. Plus, just ahead of the holiday shopping season, a slew of retail earnings are slated for release. Stepping into the earnings confessional are Lowe’s (LOW), Target (TGT), Walmart (WMT), and more.
While you wait, Schaeffer’s Senior Quantitative Analyst Rocky White has some advice concerning end of year tax tips to optimize your portfolios, while Senior V.P. of Research Todd Salamone ponders the short-term challenges that could hinder the SPX’s next move higher.