U.S. assets are gaining after Trump's win while the strong US dollar is not bothering indices, while EURUSD is losing almost 2%. Investors like the prospect of protectionist policies and tax cuts, as well as a series of actions by Republicans and Trump, who are likely to focus on creating optimal operating conditions for American businesses.
- DJIA (US30) futures gain more than 2.7%, while the VIX volatility index slides 11%, pressured by strong stock market performance
- Tesla gains 15% as investors expect the withdrawal of government EV support programs to help the company fight off domestic peers; high tariffs on EV cars from China to solidify its position in the EV market
- Other technology companies are also gaining, but remain in the shadow of stocks from the S&P 500 and DJIA indices
- Strong gains in the banking and financial sector. Goldman Sachs and Morgan Stanley gain nearly 7%; Wells Fargo rises nearly 14%
- Trump Media & Technology shares open nearly 30% higher; Semler Scientific gains nearly 15% on Bitcoin's surge to $74k.
- Super Micro Computer (SMCI.US) loses 21% after releasing unaudited financial results and issuing a Board of Directors statement that sounded rather conservative. The company indicated that after the audit the final results could change
- Markets slightly reduce bets on size of Fed rate cuts this year, currently pricing 41 bps of cuts by year-end across November and December meetings.
The financial and banking sector has become a big beneficiary of Trump's win. IT services companies are also gaining. Instead, Chinese stocks are under pressure. The technology sector is doing very well. Source: xStation5
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Futures on the Russell 2000 index of small and medium-sized US companies are gaining more than 5% today. Investors expect that, as in 2016, the index will behave better than the S&P 500 from now on and smaller US businesses will benefit from new policies from the White House, which may cut taxes, contributing to higher consumption and introduce a number of protectionist plans to support US companies.
Source: xStation5
Futures on the Dow Jones Industrial Average (US30) reached new historic highs today above 43,800 points. Investors expect US businesses of the so-called 'traditional economy' to be sizable beneficiaries of the changes proposed by Donald Trump.
Source: xStation5
Semler Scientific connects to Bitcoin rally
Medical equipment company Semler Scientific (SMLR.US), known for selling QuantaFlo medical devices and software, among other products, reported results above market forecasts, although revenues fell 17% y/y to $13.5 million. The company's shares are gaining, however, as it already holds a total of more than 1,050 BTC. Net income came in at $5.6 million, up nearly 2% y/y. Gross margin rose to 42% from 34% a year earlier, helped by lower expenses. Earnings per share were $0.8, with a current price of $43 per share. The company indicated that it will continue to focus on accumulating more BTC.
Source: xStation5
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