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2020/11/06

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Indexes Snapshot
Symbol Last Change %
Dow Jones Industrial Average 28390.18 +542.52 +1.97%
NASDAQ Composite 11890.93 +300.15 +2.69%
S&P 500 3510.45 +67.01 +1.99%
SPDR S&P 500 350.64 +7.10 +2.11%
iShares Russell 2000 ETF 165.13 +4.71 +2.94%
U.S. STOCK INDEXES

GENERAL STOCK MARKET COMMENT: U.S. stock indexes closed solidly higher again today. Traders as of this writing were awaiting the conclusion of the Federal Open Market Committee (FOMC) meeting that started Wednesday morning and on Thursday afternoon concludes with a statement on U.S. monetary policy. Fed Chairman Powell will also hold a press conference Thursday afternoon. No major changes in U.S. monetary policy are expected, but as usual the marketplace will be looking for guidance on future actions from the Fed. Asian and European stock markets were mostly up overnight. U.S. stock indexes are solidly up at midday. The marketplace sees better risk appetite late this week, in the wake of the U.S. elections. While it's still uncertain who will be the U.S. president in January (although Biden appears most likely to be, at present), a near certainty is that there will be gridlock in the U.S. Congress for at least the next two years. That's good for stock and financial markets because no major, radical legislation would occur with a split U.S. Congress that will likely see the Republicans control the Senate and the Democrats control the House of Representatives. The "inflation trade" that had gained steam in the weeks heading into the U.S. elections is now being unwound. Polls forecasting a Democratic sweep had many market watchers reckoning huge government spending programs that would help to ignite inflation. That won't be the case now, and U.S. Treasury yields are dropping like a rock. The yield on the benchmark 30-year Treasury note is presently 0.74%. Meantime, the U.S. dollar index has sold off sharply in the wake of the election. The other important outside market sees crude oil prices weaker and trading around $38.50 a barrel. Oil market bulls have had a very good week, to suggest at least sideways and choppy price action for that market in the near term. Friday the U.S. employment situation report for October from the Labor Department is out. The key non-farm payrolls number is seen up 530,000 and the unemployment rate is seen at 7.7% versus 7.9% seen in September.



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