Your Wednesday Blip 11/4/20

Your Wednesday Blip 11/4/20

With the election results in limbo and possibly headed to a contested outcome the markets showed upward bias with the Dow posting a closing gain 367 points at 27,847. Trading volume was higher. Bank stocks were down while large cap growth and tech stocks ran higher. While the presidential results are uncertain and could take time to sort out the markets are higher because gridlock in DC is alive and well. With the Senate remaining under Republican control while the House remains in Democrat hands the market likes this gridlock since it will act as a barrier to any major policy changes.
Shares of Uber and Lyft got a boost as California voters passed a ballot measure saying that App-based drivers are independent contractors and not employees. Had the measure failed, companies like Uber, Door Dash, Lyft and others would have had to reclassify drivers as employees forcing them to reorganize.
The US service sector continues to expand but at a slightly lower pace. The October ISM reading came in at 56.6 down from September’s pace of 57.8. Readings above 50 signals growth. This is the 5th consecutive month of expansion for the service sector.
Crude oil prices continue to trade in a range of the mid $30’s to $40 per barrel. The latest data shows concerns of declining demand as the EU goes into lockdown. On the supply side OPEC and Russia hinted they will continue to limit production in order to support prices. In the US, oil inventory has been falling a bit more than expected as demand is steady with a slow trend higher. WTI crude today closed at $38.40 up 2%.