The stock market put up some gains on Election Eve, but it was a broadly uneven affair that refused to give anxious election-watchers much of an idea what to expect tomorrow.
Several of 2020's bigger large-cap winners, such as Amazon.com (AMZN, -1.0%) and Facebook (FB, -0.7%), continued to shed more of their profits as part of a sharp weeklong downturn. That dragged on the Nasdaq Composite, which finished with a modest 0.4% return to 10,957.
However, several of the Dow Jones Industrial Average's cyclical components – such as Honeywell (HON, +5.3%), Dow (DOW, +5.1%) and Chevron (CVX, +3.8%) – enjoyed much more robust advances Monday. The end result was a nice 1.6% pop for the industrial average to 26,925.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The S&P 500, meanwhile, improved by 1.2% to 3,310, taunting investors by hovering right around an important level that has pretty accurately determined past presidential elections.
Other action in the stock market today:
- The Russell 2000 closed up 2.0% to 1,568
- Gold futures gained 0.7% to settle at $1,892.50 per ounce.
- U.S. crude oil futures for December finished 2.9% to settle at $36.81 per barrel.
Is Pot Predicting the Presidency?
Are there any last-minute signs from investors or the economy?
"Indicators such as a weak U.S. dollar and rising incomes are suggestive of an incumbent party victory, and the average of GDP growth in the second and third quarters of election years can have predictive power for who wins the election – with stronger growth favoring incumbents," writes Ryan Detrick, chief market strategist for LPL Financial. However, "we would also point out that recessions close to elections have historically favored challengers, creating conflicting market signals going into Election Day."
In other words, not much there. However, one tiny (but, ahem, budding) industry might be trying to throw up a smoke signal. Marijuana stocks rocketed higher Monday, as evidenced by a 6.6% jump in the broader ETFMG Alternative Harvest ETF (MJ) of cannabis stocks.
America has been progressing toward legalization for years, and Joe Biden has pledged to decriminalize marijuana – so today's run-up was perhaps driven by investors front-running the electoral result.
OK, OK. Ultimately, any kind of indicator like that is just investors betting on what they think will happen, and it naturally won't help decide the presidential race. Still, investors with some risk appetite should nonetheless keep their eye on the space. That includes these 10 marijuana stocks and other investments, which could take off in 2021 if the environment for marijuana is kinder than it was in 2020.
Kyle Woodley was long AMZN and FB as of this writing.
-
Quiz: How Much Do You Know About Taxes on Social Security Benefits?Quiz Social Security benefits often come with confusing IRS tax rules that can trip up financially savvy retirees and near-retirees.
-
Are You Ready for 65? The Medicare Initial Enrollment Period QuizQuiz Turning 65 soon? Test your basic knowledge of Medicare's Initial Enrollment Period (IEP) rules in our quick quiz.
-
3 Ways to Stretch the 2026 Social Security COLA For Your BudgetThree steps retirees can take to stretch the Social Security COLA to fit their budgets.
-
Dow Slides 427 Points to Open December: Stock Market TodayThe final month of 2025 begins on a negative note after stocks ended November with a startling rally.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market over the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
Stocks Extend Win Streak on Black Friday: Stock Market TodayThe main indexes notched wins in Friday's shortened session, with the blue-chip Dow Jones Industrial Average closing higher on the month.
-
Dow Adds 314 Points to Thanksgiving Rally: Stock Market TodayInvestors, traders and speculators enjoy the best Thanksgiving Week gains for the major stock market indexes in more than a decade.
-
Dow Gains 664 Points as Rate-Cut Hopes Rise: Stock Market TodayMarkets are pricing in higher odds for a December rate cut, fueling a major rally in stocks ahead of the Thanksgiving holiday.
-
Nasdaq Rises 2.7% as Musk Tweets TSLA Higher: Stock Market TodayMarkets follow through on Friday's reversal rally with even bigger moves on Monday.
-
Dow Soars 493 Points in Fed-Fueled Bounce: Stock Market TodayNew York Fed President John Williams struck a dovish tone Friday, which eased Wall Street's worries over a potential December pause.
