YAHOO: Stocks and commodities surged on Election Day, benefiting
from some better-than-expected quarterly earnings results, improvement in
the credit market and a report that the a broader
range of financial firms may receive investments from the Treasury.
The S&P 500 rose 4.1% in broad-based strength, ending near its
best level of the session. Small-cap names, however, saw less of a bid,
with the Russell 2000 Index closing up just 1.3%.
Commodities rallied 5.3% as the dollar tumbled 1.8% against a
basket of world currencies. Oil futures for December delivery surged 9.0%
to $69.65 per barrel, getting an added boost from reports that some OPEC
members were cutting production.
Credit markets continue to show improvement and investors are
showing less fear. Interbank dollar lending, known as Libor, declined across
all terms and the TED Spread fell 18 basis points to 2.24%. The
Volatility Index, which is considered the "fear index", declined
11%.
General Electric
(GE 20.81, +1.51) was the best-performing S&P 500 component. The
In earnings news, MasterCard
(MA 169.37, +25.48), Archer
Daniels
All ten of the economic sectors rose, led
by energy (+6.4%), telecom (+5.2%) and industrials (+5.5%).
Healthcare (+1.6%) and utilities (+2.3%) underperformed on a relative basis.
In economic news, market participants shrugged off negative factory
orders data. September factory orders fell 2.5% month-over-month after dropping
4.3% in August. The results were worse than the 0.8% decline that was expected.
Despite the rally in stocks, the longer term Treasuries
rallied. The 10-year note rose 48 ticks and the
30-year bond rose 68 ticks in light trade.
The S&P 500 has surged 19.8% since its October 10 multi-year
low. Despite the massive advance, it is still down 31.5% year-to-date.DJ30
+305.45 NASDAQ +53.79 NQ100 +3.3% R2K +1.4% SP400 +2.3% SP500 +39.45 NASDAQ
Adv/Vol/Dec 1758/2.33 bln/1006 NYSE Adv/Vol/Dec 2464/1.31 bln/663