Tuesday , July 27 2021

Wall Streets Meeting on US Elections; Tech, Head of Health Stocks

NEW YORK – Wall Street grew 2 percent on Wednesday, headed by the technology and health sectors, as investors took relief after US elections in the middle quarters and made bets for a split congress to be good news for stocks.

Democrats won control over the House of Representatives on Tuesday, while the Republican Party of President Donald Trumpa extended the senate majority, pointing to the likelihood of political debate in Washington.

The biggest incentives for S & P came from the S & P and healthcare sector, with both indexes gaining 2.9 percent. The consumer discretionary sector increased by 3.1 percent, driven by the growth of Amazon.com shares by 6.9 percent. Amazon has secured the biggest boost from the S & P 500.

"We are now in an environment that people can again understand to be willing to return money on the table," said Peter Tuz, president of Chase Investment Counsel Corp. in Charlottesville, Virginia.

The industry average Dow Jones grew by 545.29 points, or 2.13 percent to 26,180.3, while S & P 500 got 58.44 points or 2.12 percent at 2,813.89 and Nasdaq Composite added 194, 79 points or 2.64 percent to 7.570.75.

The CBOE Index, most often followed by the S & P 500 expected short-term measures, ended 3.55 points at 16.36 and is the lowest in about a month.

Although the divided congress will make it difficult for President Donald Trump to push the new law as an additional tax cut, investors did not expect to reverse the tax breaks and deregulation that had already been made under Trump.

"This outcome is most likely to provide the greatest paralysis for new policies," said Brian Nick, chief investment strategist for Nuveen Asset Management in New York, adding that growth sectors such as technology and healthcare will continue to be strong.

"In a scenario where there is no (additional) fiscal incentive, and we do not see any worries about contract growth, they are the best bet," he said.

Some strategies have stated that Democratic Control of the House means that Trump will have more time to support the efforts to impose new regulations on Amazon.com.

But even as technology and health supplies increased, several investors wondered if the sectors could now be exposed to the risk of additional regulatory control.

Even after gains on Wednesday, the S & P 500 was 4 percent lower than the record in September, as investors kept their eyes on rising interest rates and a trade war in the US.

The federal residence began a two-day monetary policy meeting Wednesday, but no increase in rates was expected when the policy decision was issued on Thursday. The FED is expected to increase rates in December, at the last policy meeting this year.

Health Insurance Humana Inc, Anthem Inc and UnitedHealth Group Inc jumped to record highs because voters in three states approved the Medicaid Expansion Program for low income people.

DaVita Inc. jumped by 10.9 percent after California rejected a proposal to limit the rates that dialysis doctors could charge for commercially insured patients.

Anadarko Petroleum Corp grew by 5.7 percent, and Noble Energy Inc. won 4 percent after Colorado voters rejected a stricter rule on oil and gas drilling, which triggered shares in companies operating in the state.

Increasing number of problems with the number of rejections on the NYSE by 3.27 to 1; at Nasdaq, the 2.31-to-1 ratio favored progressors.

The S & P 500 has released 35 new 52-week uphill and three new lows; Nasdaq Composite records 67 new ups and 71 new lows.

On US stock exchanges, 8.0 billion shares changed hands compared to 8.64 billion in the last 20 sessions.

(Additional Reporting in April Joyner, Saqib Iqbal Ahmed and Caroline Valetkevitch in New York, Sruthi Shankar in Bengaluru, Additional Reporting by Medhe Singh, Editing Cynthie Osterman and Leslie Adler)

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