US stocks higher despite no election result… and Uber’s big win

By Jonathan Jackson. Published at Nov 5, 2020, in Market Wrap

US stocks closed higher, with no election results able to be called and indeed too close to call.

According to Chris Beauchamp, Chief Market Analyst at IG, “The US election results are still to be fully determined, but the expected selloff has not arrived. We did see some volatility following the overnight highs in US futures, but this dip was rapidly bought, showing that perhaps it was the just existence of the election rather than concerns about its outcome that was holding a wave of buying in check.

“Once more, polls have proven to be rather wide of the mark, and the focus on a possible ‘blue wave’ has been shown to be a complete red herring.

“The bigger problem now is that a new fiscal stimulus is now very unlikely in the foreseeable future, given the potential for extended legal action in coming weeks before a winner emerges, and even then we can look forward with trepidation to the president (whoever that is) having to battle lawmakers to get a stimulus bill through.

“All those concerns appear to be off in the future this morning however, as European markets move higher and US futures point to a more optimistic open.

“The week is not yet over of course, and while the focus on the count in various states continues, we also start off the run into non-farm payrolls with today’s ADP report, and this will be followed up by the BoE and the Fed tomorrow, both of which could be interesting given the need for central banks to do more.

“The Fed in particular will have to take up its QE role again with a weary sigh, in order perhaps to provide yet another bridge to the future when, hopefully, a government stimulus package will have been agreed.”

The Dow Jones Industrial Average DJIA rose 367.63 points, or 1.3%, enjoying a third straight day of gains. The S&P 500 SPX added 74.42 points, or 2.2% and the Nasdaq Composite COMP soared 430.21 points, 3.9% – the best post-election daily gains on record for each of them.

Wall St looks to be factoring in a divided US government, which would see the Trump administration tax cuts remain in place no matter who takes office.

“I think the market’s reaction is rational, in the sense of how it’s reacting by sectors,” said David Bianco, chief investment officer, Americas at DWS Group.

Bianco pointed to rising shares in the technology and health-care sectors, leading all three major stock benchmarks higher on Wednesday.

“The big question overall is, does the market belong here, given that the election hasn’t been finalized?” he said. “At this moment, cash is not trash. Cash is a fine place to be.”

Another question is how volatile will the market be post election?

In other news

Oil futures rose, with the US benchmark CL up 4% to settle at $39.15 per barrel.

Gold futures GC00 slumped 0.7% to settle at $1,896.20 as prospects for a large fiscal spending package favoured by Democrats faded.

The Stoxx 600 Europe Index XX:SXXP jumped 2.1%. London’s FTSE 100 UK:UKX was up 1.7%.

Uber was a big winner.

After winning a legislative fight on Wednesday, its shares rose 14.6%. The win sees the company maintain its employee classification, with drivers remaining as independent contractors, not employees. This win also saw and Lyft gain 11.3%.


DOW: +1.34%

NASDAQ: + 3.85%

S&P 500: + 2.20%

FTSE 100: + 1.67%

DAX: + 1.95%

CAC 40: + 2.44%

Nikkei 225: + 1.72%

Hang Seng: - 0.21%

S&P/ASX 200: - 0.71%

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!