To The Moon

We saw major U.S. equities indices making their record highs as the presidential election results offered increased visibility into the country's economic trajectory over the coming years.

This has make the political uncertainty diminishes, investors will likely turn their attention to the Federal Reserve, which is set to announce its latest interest rate decision Thursday.

The S&P 500 gained 2.5% on Wednesday, the Nasdaq rose 3.0%, and the Dow shot up 3.6%.

S&P 500 Financial Sector Was Top With More Than 6% Gains

Companies in the financial sector, especially those that issue credit cards—were among the top performers in the wake of Election Day. Shares of Discover Financial Services (DFS) soared 20.2%, notching the strongest gain of any S&P 500 stock. Discover previously announced plans to merge with Capital One (COF).

Increased optimism about the deal receiving regulatory approval under a second Donald Trump administration likely helped boost shares of both companies, as Capital One stock popped 15.0% higher. Meanwhile, shares of Synchrony Financial (SYF), known for its retail-branded credit cards, surged 18.8%.

Consumer Discretionary sector was helped by Tesla (TSLA) shares hit their highest level in more than two years, after Trump called CEO Elon Musk “a genius” during his acceptance speech, with investors anticipating Musk’s support for the incoming president during the campaign could aid the electric vehicle maker.  

Note Yield Surged Midday Before Going Much Higher

Major U.S. indexes surged at midday Wednesday with former President Donald Trump set to return to the White House. The Dow jumped over 3%, while the S&P 500 and Nasdaq added 2%. The yield on the 10-year Treasury also climbed.

10 year treasury note closed higher at 4.435% with more than one hundred basis point.

Stocks To Watch

Shares of companies that stand to benefit from higher interest rates and Trump’s plans to cut regulations also gained. $Goldman Sachs(GS)$ was the best-performing stock in the Dow, with shares of Wells Fargo (WFC) and JPMorgan Chase (JPM) higher as well.

Shares of $Coinbase Global, Inc.(COIN)$ and other cryptocurrency-related firms took off as the price of Bitcoin hit a record high and other digital coins gained with Trump calling for the U.S. to be “the crypto capital of the planet.”

As we could see that Bitcoin and crypto should be making some new highs, one of the stocks that might benefit would be COIN.

We have see a nice surge up and with MACD making a bullish crossover soon, and MTF with a strong uptrend, we could expect some more upside trading over the next two days.

Shares of $Tesla Motors(TSLA)$ jumped 14% Wednesday on investor bets that the electric vehicle (EV) maker run by Elon Musk will be a major beneficiary of Donald Trump’s return to the presidency.

Tesla would be one of the stocks that should be benefitting even though the EV rebates would be reduced with Trump’s win, this should create a clear winner differential.

Tesla should be coming out strong, from its recent stock price and a strong MTF and MACD already in a bullish upside, I am expecting a new PT of $300 for Tesla.

$CVS Health(CVS)$ reported better-than-expected quarterly results, CVS Health (CVS) shares surged after the pharmacy chain and healthcare company posted better-than-expected results and new CEO David Joyner made leadership changes as he moves to shake up the struggling firm.

We need a better stock price move towards the MA, currently it is still not giving confidence whether this stock can moved higher.

MACD is showing a bearish crossover and MTF is also giving a bearish signal. So we need to be careful when trading this stock.

Trimble (TRMB) shares added 17.9% after the GPS navigation firm reported better-than-expected third-quarter sales and profits. A revenue boost from the company's subscriptions and software services helped drive strong performance and contributed to an increase in full-year guidance. The company cited positive trends in client spending as concerns about the economy recede.

Steel producers also enjoyed a post-election bump. Leading up to the election, analysts indicated that a Trump victory could lead to more protective policies toward the domestic steel industry. Shares of North Carolina-based steelmaker Nucor (NUE) jumped 16.0%.

Super Micro Computer (SMCI) shares logged the weakest performance in the S&P 500, plummeting 18.1% after the server and data storage provider said it is unable to specify a release date for its postponed 2024 annual report. Last week, accounting giant EY resigned from its auditing role with Supermicro. The uncertain outlook for the financial data release raised concerns about a possible delisting of the stock. The Nasdaq warned in a September letter that the reporting delay has left Supermicro out of compliance with the exchange's rules.

Solar industry stocks lost some of their luster as media sources called the presidential election in favor of Trump. The former president has pledged that, upon returning to the White House, he intends to reverse Biden administration policies designed to promote the adoption of renewable energy solutions. Shares of solar technology provider Enphase Energy (ENPH) dropped 16.8% on Wednesday, while shares of solar module manufacturer First Solar (FSLR) sank 10.1%.

Although food and beverage, personal care, and health industry supplier International Flavors & Fragrances (IFF) topped third-quarter revenue estimates, earnings per share (EPS) came in below expectations, and its shares sank 11.6%.

Summary

We could expect some more upside trading with stocks that could benefitting from Trump win, and we need to be careful on how the market moved, it is important to focus on high quality businesses with strong cash flow.

Appreciate if you could share your thoughts in the comment section whether you think market would continue with more upside today (07 Nov).

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.