The KUIK Morning Market Report for Wednesday, November 9:
Markets are mixed.
Index
Direction
Change
Units
Time
Dow
Up
16
points
18,341
7:10 AM
S&P500
Down
-0.2%
percent
2,135
Nasdaq Composite
Down
-0.4%
percent
5,175
30 Year Treasury
Up
13
Basis Points
2.76
Annual Yield
In a stunning victory,Republican candidate Donald Trump has been elected America’s 45th president. He won 279 electoral votes compared to Democrat Hillary Clinton’s 218. Republicans also retained control of the House of Representatives and the Senate.
Exchange-traded funds tied to Mexico are down about 9% this morning, in the wake of Donald Trump’s victory. The iShares MSCI Mexico Capped ETF has its biggest one-day drop since 2008. The mexican peso is off 9% vs the US dollar.
Long-dated U.S. Treasurys fell in price pushing up yields on expectations President Trump will boost fiscal spending. Yields at the short end have fallen on safe haven buying and fading expectations that the Federal Reserve will raise interest rates in December. Rob Carnell, chief international economist at ING, said the protectionism espoused by Trump is likely to be the greatest threat to U.S. growth while expansionary fiscal policy could offset some of the adverse impact. However, the Fed is likely to view the market turmoil as a financial market tightening, “and the case for a December rate increase from the Fed has diminished substantially.”
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
