The U.S. election night is over but stock futures are not very optimistic as we have no clarity in terms of U.S. presidential election. After a painful night, traders are still not sure who will become the President of the United States. The race is extremely close and it seems like a legal battle is very much on the cards over the validity of votes.
The Asian stock market closed in positive territory today. The HIS index closed with a gain of 0.38%. The Korean Kospi index advanced 0.60%, while the Nikkei index surged 1.72%. The Shanghai index rose by 0.19%.
Dow Jones and S&P 500: Market Breadth
The Dow Jones’ market breadth improved further yesterday. 60% of the Dow Jones stocks traded above their 200-day moving average. This is a change of +7% from a day earlier.
The S&P 500 stock breadth became stronger yesterday. 69% of the shares traded above their 200-day moving average. This is a change of +5% from a day earlier.
Dow Jones Futures Today
The Dow Jones futures are trading lower by -200 points today. In terms of economic data, investors will be looking at the ADP Non-Farm Employment change data. This data sets the tone for the US Non-Farm payroll data. The forecast for this number is 650K, against the previous reading of 749K.
The Dow Jones futures have tested the 100-day and 50-day simple moving averages on the daily time frame. The price has failed to stay above these two important moving averages and this shows that we do not have strong buying pressure. However, bulls are still hopeful as the price is still trading above the 200-day SMA.
The S&P 500 futures, which represent the broader stock market, have also failed to break above the two important moving averages, which are 50 and 100-day SMA on the daily time frame. The bull trend is still very much in place as the price is trading above the 200-day SMA.
Stock Market Rally
The S&P 500 stock index continued to build on positive momentum yesterday; the index increased by 1.78%. The industrial sector led the index higher- 10 out of 11 sectors closed higher.
The Dow index maintained its rally yesterday; the Dow stocks moved the index higher by 2.06%. 4shares of the Dow fell, and 25 closed higher.
The NASDAQ composite, a tech-savvy index, surged yesterday, and it closed with a gain of 1.85%.
S&P 500 Leaders and Laggards:
Arista Networks stock contributed the biggest gain, soaring 15.4%. Apartment Investment and Management Co stock was the largest drag; it fell by 16.1%. The S&P 500 stock index is up 9.45% so far this year.
Dow Jones Leaders and Laggards
United Health stock advanced higher by 2.96% and was the biggest mover for the Dow, while Chevron stock declined 0.57%, the biggest drag for Dow Jones Industrial Average index.