Vince Signorelli, Dave Wilson, Bloomberg News discussed on Bloomberg Businessweek
Let's learn more about the trade Charlie laying it out really beautifully for us on this Wednesday, Vince Signorelli He's with US global macro strategist at Bloomberg News. He contributes to the macro squat desk. You can find it, but just going to squat. Go on your launch pad. Dave Wilson is with US stocks editor of Bloomberg News on the remote access from New Jersey insignia Rela Dave Wilson. Vince, Let's start with you. I don't know about you, but I got about three hours sleep because I just could not go to bed and then watching market reaction. It was just kind of nonstop, but What have you guys been blogging about? They got to do these elections on the weekend sleeping in the next hour. I want my kids. Just a quick headline. Just crossing for you. CNN is calling Wisconsin for biting. That's just hitting our tape. At the moment Markets markets are looking at the lack of a blue wave. As basically being a positive because we will not get the tax hikes that the bite in administration had suggested, because they won't be able to get through. The Senate will also seeing the other side of the coin of this isn't and I must say, I'm really confused that were rallying a CZ faras. We are on this because the other side of the coin is We're not likely to get the big stimulus package. We would have gotten under wave even under Ah Democratic House and Senate with Trump as president, because, while McConnell said this morning that he thinks we should have stimulus before the end of the year, and there was a need for another stimulus package. He's given no indication whatsoever that he's willing to go past that 500 billion mark where you have the house to point to threaten and ATT least Republican president at 1.7. So even if we were to get a stimulus bill, it's going to be a meager one. Not not, the more that the market really is looking for. And the virus hasn't gone anywhere Cases record cases in Europe. When it started there. It came here. There's no reason to believe. You know, everyone's talking about vaccine. Where, right, Right. It's certainly not coming tomorrow. I mean, everybody's working. Good. Yeah, I just don't feel good going to sustain long term, right? And you continue to remind us that folks, the virus is still here. Dave Olsen come on in on this because I'm looking at the best performing groups in the S and P 500 health care, the top communications services information technology. Consumer discretionary. I mean, the first trade feels really big time on today. No, absolutely. And you put those groups together and what do you get? You know, it's not just about taxes or economic stimulus. It's also about you know what happens to the health care system. If it's pretty much status quo him and the potential for a divided government, you know, people are satisfied with that. You certainly see it show up in terms of health care. Best performer among the 11 main industry groups in the S and P 500. That's the health insurers that are, for the most part, leading the way. UnitedHealth anthem signal all up more than 11% at the moment, and then you have the story of bio gel, which is up 44% ofsome positive comments prepared for an FDA advisory panel about it's Alzheimer's drug that was revived last year. So that's a company specific story. But you know drugmakers more broadly or also rally. You know the other side of the coin. You know what Vince talks aboutthe stimulus trade such as it is, you see it show up in the shares of the regional banks were really taking a hit in today's trading. You also see it show up in some of the infrastructure related stocks. Caterpillar Ah, no construction McCue material Cos Mark Mariana Materials, Vulcan materials. They're all taken hits all for what we're seeing, So it's not like people are for getting sort of that. That argument. A ce faras? What happens to the stimulus program? You know, you think about big tack mean they're really you know, that's communication services. That's in information technology as consumer discretionary with amazon dot com, right them altogether, these air cos they're able to grow with regardless of what happens, Economy whatever happens, the stimulus and people are gravitating to him today, as they have for a long time on one point infrastructure. We're gonna check in with the CEO over it. Bam! Build America Mutual because we certainly were watching. Some of the state elections when it came to voting on infrastructure money spending in that area. Hey, Vince, I mean gridlock. Investors tend to like it and it feels like that's what we're going to have. But it does worry me about the people who need stuff right now in our society as we continue to fight the virus and deal with a really weak economy. If there were no virus, I would say this is this is the perfect soup. You know that we have the gridlock in Washington markets like it see gradual growth, gradual changes to the stock market on a positive way and gradual increases earnings. But not only do we have the virus. We also have another election coming up after January, which No one is talking about you going to leave it on the block's shortly layer where the House is up for election after in the Congress now not great expectations that close he won't keep it. I mean, she's really she's fought off challenges in the past, and as as Trump's greatest adversary. I think she's won a lot of points and score a lot of points in our party. But if she is challenged by a progressive That could change the votes. Just a majority, not a super majority in the house. If, for whatever reason that seat the speaker would go progressive. I think the markets would take that very badly thinking that a big new Green deal with becoming the tax hikes. We'd be back into the conversation, etcetera, so just something to keep in your outlook calendar for down the road to be prepared for us. We get into the new year. I'm just telling you my outlook calendars. Mac's dad, I don't have any more room. All right, Vince Signorelli. Thank you. As always, we're going to check in with you Live it later on. He's our global macro strategist at Bloomberg News. Dave Wilson's gonna be back to you with his stock and chart of the day. We are doubling down on the election and the outcome of the next few hours a lot that we know we are expecting to hear from Vice President Joe Biden at some point later today, we're going to look into the road to how we got here and really the road to legal battles. We just mentioned one By the Trump team in terms of the election outcome, So we're going to get into that bloomer contributor Rick Davis, former Republican strategist, former manager of Senator John McCain's presidential campaign He's going to talk about the race is still yet to be called. We're also seeing as David mentioned several market trades and moves off the election. Some of them kind of all over the place. Cannabis stocks initially higher on then we saw the kind of pull off some of those gains. So we're going to check it with Chris Beals, the CEO of California based Weed maps. They work with consumers and companies within that industry. Ross gonna check in as I mentioned with the CEO of a band build America Mutual about infrastructure and the outlook there. All right, Let's get a check on world the national news. She's been.