Stock Election Explosion, Factory Orders Fall, JP Morgan Closes Trading Desk

A monster Election Day rally sent stocks exploding upward on the soon to be resolved Presidential race. The market surged to the largest Election Day rally in 24 years despite a severe drop in Factory Orders and other negative news. JP Morgan closed its proprietary trading desk citing extremely difficult trading conditions and a reapplication of capital resources. The DJIA soared +305.45 to 9625.28, the Nasdaq climbed +53.79 to 1780.12 and the broad based S&P 500 advanced above the technically critical 1000 level, climbing +39.45 to 1005.75

CIT Group
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– This 100 year old commercial lender climbed 36.06% or $1.63 to $6.15/share on rumors that the U.S. Treasury will include the firm in its bail out package.

Deere
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– The tractor and farm equipment maker jumped 8.99% or $3.51 to $42.54/share after the CEO said the American farmer never had it better on the Mad Money TV show.

Herbalife
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– Dropped 23.54% or $5.99 to $19.46/share as the multi level marketer of nutritional supplements lowered its forecast citing exchange rates as the culprit.

MasterCard
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– Climbed 18.31% or $26.35 to $170.24 after beating analysts estimates by 11%.

Gold climbed $30.50; oil added $6.62 and the VIX dropped 11.08%

Market Snapshot

Dow

+305.45 9625.28

NASDAQ

+53.79 1780.12

S&P 500

+39.45 1005.75

Economic
News

Construction Spending: (Sep): Consensus -0.8%, Prior 0.0%

ISM Index (Oct): Consensus 42.0, Prior 43.5

Auto Sales (Oct): Consensus NA, Prior 4.3M

Truck Sales (Oct) Consensus NA, Prior 5.3M

Factory Orders (Sep) Consensus -1.5%, Prior -4.0%

ADP Employment (Oct): Consensus -80K, Prior -8K

ISM Services (Oct): Consensus 48.5, Prior 50.2

Initial Chains (Nov 01): Consensus NA, Prior 479K

Productivity-Prel (Q3): Consensus 1.0%, Prior 4.3%

Average Workweek (Oct): Consensus NA, Prior 33.6

Hourly Earnings (Oct): Consensus NA, Prior 0.2%

Nonfarm Payrolls (Oct): Consensus NA, Prior -159K

Unemployment Rate (Oct): Consensus NA, Prior 6.1%

Pending Home Sales (Sep: Consensus NA, Prior 7.4%

Wholesale Inventories (Sep): Consensus NA, Prior 0.8%

Consumer Credit (Sep): Consensus NA, Prior -$7.9B

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