Falling bond yields suggest a flight to safety (and a lack of confidence in spending stimulates deficits) while volatile stocks suggest widespread anxiety. S&P 500 futures contracts moved between up and down almost 10x in 12 hours leading to 6am Eastern time. And in a sign of the times, shares of tech giants like Amazon, Apple and Microsoft are among the biggest gainers in pre-market trading, serving as a haven for investors. Investors are looking for a place to deposit their money. (The divided government also “reduces some of the opportunities for the antitrust concerns we had with literally large-cap technology two days ago,”; added Mr Detrick.)
3. Companies have to deal with engaged but divided employees, customers, and stakeholders
Whatever the outcome of the election, it is clear that the country is participating in politics more than before. Voter turnout is historically high, with early voting in some states exceeding 2016 totals. But ticket splitting seems to be a thing of the past, with voters choosing candidates. seriously following the party’s line. For companies that are increasingly focused on political and social issues in addition to finding profits, this is a double-edged sword.
Susan McPherson, founder of McPherson Strategies, said: “The genie was outstanding” in terms of corporate citizen participation, saying, describing herself as “thrilled” with voters. “My hope is that this is a low point in the unity of our country and that we can rebuild from here whatever happens,” said Bryan Sanchez of Lionstone Investments.
For all the latest election news, stay tuned live updates, forecast and summary of results so far.
THIS IS WHAT (ELSE) IS HAPPENING
A clearer picture of immunity to Covid-19 is emerging. A new study done in the UK shows that cellular immunity to coronavirus is likely to appear at least six months after infection. That suggests that people can fight off the virus even as the antibodies fade away. (Research has yet to be approved.)
A top strategist at JPMorgan Chase accused his colleagues of political bias. In an internal conversation, Marko Kolanovic, global head of macro quantification and bank derivative strategy, said banking analysts are based on forecasts of “party preferences” and call it a “joke”. The exchange was silent after his remarks, Bloomberg reported.
BMW profits rose sharply on the back of strong demand in China. The automaker said its third-quarter earnings increased by nearly 10%, largely thanks to a 31% increase in sales in China, helping to offset a 16% drop in US sales.