Markets React to Election

The Week on Wall Street

Stocks soared last week as investors anticipated that a split Congress would raise legislative hurdles to changing corporate taxes and adjusting regulatory oversight of big technology companies.

The Dow Jones Industrial Average jumped 6.87%, while the Standard & Poor’s 500 tacked on 7.32%. The Nasdaq Composite index surged 9.01% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 7.65%.[1][2][3]

Bulls Take Charge

Coming off a poor close to October, stocks surged throughout election week, jumping higher in pre-election trading on bargain hunting and strong factory activity. The rally picked up steam as Americans went to the polls and shifted into overdrive Wednesday morning.

Investors were buoyed by Congressional results that indicate that the next president would have to work with a divided Congress. Though a divided Congress might result in a smaller potential stimulus package and continued gridlock, investors seemed to believe that was outweighed by a diminished risk of higher taxes, greater regulation, and policy initiatives that might be challenging to businesses.

Stocks took a pause to close out the week, even as a solid jobs report saw the unemployment rate fall a full percentage point to 6.9%.[4]

Yields Gyrate

Overlooked amid the powerful rally in stock prices was the swing in yields last week. Action in the bond market is important since 10-year Treasury yields are a benchmark for setting borrowing costs for businesses and they represent another view on the strength of the economic recovery.

The 10-year Treasury note rose as high as 0.942% during after-hours trading on election evening and dropped to 0.768% by the end of normal trading hours on Wednesday.[5]


  • Thursday: Consumer Price Index (CPI), Jobless Claims.
  • Friday: Consumer Sentiment.
Source: Econoday, November 6, 2020
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.


  • Monday: McDonald’s Corporation (MCD), Simon Property (SPG)
  • Tuesday: D.R. Horton (DHI), Rockwell Automation (ROK), Datadog, Inc. (DDOG)
  • Wednesday: Air Products and Chemicals, Inc. (APD)
  • Thursday: Tencent Holdings (TCEHY), The Walt Disney Company (DIS), Cisco Systems (CSCO), Applied Materials (AMAT)
  • Friday: Draftkings, Inc. (DKNG)
Source: Zacks, November 6, 2020
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

“Nothing in life is to be feared. It is only to be understood.”

-Marie Curie

Recipe of the Week

Patriotic Toast

2 pieces of toast
  • 2 pieces of bread
  • 4 tablespoons cream cheese
  • 4 tablespoons strawberry jam
  • ¼ cup blueberries
  • 1 banana
  1. Toast the bread.
  2. Spread the cream cheese on the bread.
  3. Layer the strawberry jam over the cream cheese.
  4. Cut the banana into slices, then cut each slice in half.
  5. Arrange the blueberries in the top corner of the bread in a square like the stars on the flag and lay the bananas in 3 lines to represent the stripes on the flag.
Recipe adapted from Taste and Tell[6]

Tax Tips

Special Tax Considerations for Veterans

Veterans face unique tax considerations due to their status. This includes disabled veterans. Here are some things to consider for disabled veterans and their families:
  • Disabled veterans may be eligible to claim a federal tax refund if they receive an increase in the percentage of disability from the Department of Veteran Affairs.
  • They may also be able to claim this tax refund if they are granted Combat-Related Special Compensation.
A disabled veteran can file Form 1040X, Amended US Individual Income Tax Return, if they need to make changes to their return based on the above or other changing circumstances. The veteran may only have to file an amended return on the year that the change is made.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from[7]

Golf Tip

Know a Hole’s Playing Yardage to Improve Your Strategy

While hitting a long drive is important, there’s a lot more that goes into your golf strategy. The best golfers understand yardage, including both a hole’s playing yardage and their own yardage for each of their clubs.
Playing yardage explains a lot more than just how far it is to the pin. Using a formula, you can calculate how far you actually want your ball to travel in the air, which makes your game more accurate. The distance to the pin is your starting point. You then subtract the roll out and plus or minus for wind, elevation, and lie. Once you have that number, you can use your clubs accordingly by understanding each one’s yardage.
Tip adapted from Eric Jones Golf[8]

Healthy Lifestyle

Giving Back This Veterans Day

This Veterans Day give back to military members and their families. There are many ways to participate. Here are some to get you started:
  • Disabled American Veterans has many ways to give back, from events to charitable gifts to chances for advocacy.
  • The Wounded Warrior Project provides rehab and counseling and is always looking for new volunteers.
  • Operation Write Home has a very simple premise: provide the materials that service members need to write home to their loved ones. The organization sends blank, handmade greeting cards to our troops that they can then send back home. You can give back by donating or making your own card!
Tip adapted from[9]

Green Living

Green Careers for Veterans

For many veterans, leaving the military and reintegrating into civilian life can be a challenge. Fortunately, there’s an organization aimed at training veterans in careers that are in demand and good for the planet.
Green Veterans is a division of the U.S. Green Building Council (USGBC), a non-profit organization dedicated to promoting sustainability in building design and construction. Green Veterans is designed specifically to make the transition from military to civilian life easier by providing networking, training, and volunteer opportunities towards those who served. With a focus on green careers and training, their goal is to help combat veteran unemployment and homelessness and help the planet at the same time.
Tip adapted from[10]

[1] The Wall Street Journal, November 6, 2020
[2] The Wall Street Journal, November 6, 2020
[3] The Wall Street Journal, November 6, 2020
[4] The Wall Street Journal, November 6, 2020
[5] The Wall Street Journal, November 5, 2020

[6], November 7, 2020

[7], April 21, 2020
[8], November 7, 2020
[9], November 7, 2020
[10], November 7, 2020