Dow Jones Up on Election Day. ‘GOP Stocks’ Gain, Donald Trump SPAC Falls. Bitcoin Diving

The Dow Jones industrial average moved higher as Americans voted on Election Day. Some so-called “Republican stocks” posted gains, though Donald Trump’s SPAC Digital world takeover (DWAC) fell. Coinbase (CURRENCY) and Riot Blockchain (RIOT) fell while Bitcoin retreated from June market lows after Binance moved to buy crypto exchange FTX.


A number of stocks tested bought points amid the generally bullish action, among them Albemarle (ALB), BJ’s Wholesale Club (BJ) and Fabrinet (FN).

Volume rose on both the Nasdaq and the New York Stock Exchange, according to early data. This is a plus on an elevated day.

The yield on the benchmark 10-year bond fell seven basis points to 4.14%. West Texas Intermediate crude fell nearly 3% to trade just above $89 a barrel.

Nasdaq Fights Back, IBD 50 Lags

The Nasdaq struggled out of the red to end the day up 0.5%. Palo Alto Networks (PANW) shined with a 6.7% gain.

The S&P 500 rose 0.6%. SolarEdge Technologies (SEDG) starred here with a 19.1% gain.

S&P 500 sectors were mostly positive, with materials and technology doing better. Consumer discretionary was the only area to close negatively.

Small-caps managed to escape the red, with the Russell 2000 ending the session up 0.1%.

However, the Innovator IBD 50 ETF ( FFTY ), a bellwether for growth stocks, closed lower but fell 0.3%.

Dow Jones Pops: Amgen Shines, Disney Earnings Dee

The Dow Jones industrial average outperformed the major averages as it rose 1%, or 334 points. But it also left some gains.

Amgen (AMGN) led the index, gaining 5.5%. Boeing (BA) also shined, rising about 2.9%.

Walgreen Boots Alliance (WBA) lagged, 0.7%. But Walt Disney (DIS) also fell ahead of its earnings report, plunging 0.5%. The company lost on the top and bottom line after hours.

“Republican Stocks” profit.

Research shows that the stock market tends to rise after the midterm elections. Since 1950, the average annual return of the S&P 500 after an interim has been about 15%.

With Republicans expected to take at least partial control of Congress, some stocks Strategas picked for its GOP portfolio were winning.

Defensive game Lockheed Martin (LMT) rose 1.1% and is currently trading in a buy zone above a 480.09 entry, according to MarketSmith analysis.

Johnson & Johnson (JNJ) reversed higher to gain 0.5%. Approaching entrance cup with handle 175.49.

Stock leaderboard Cheniere Energy (LNG) is also on the list, up 1.7% for the day. The natural gas play is trading just below the 178.72 buy point.

Donald Trump stock slides

Digital World Acquisition failed to rally with other Republican stocks. Donald Trump’s SPAC surged Monday on election speculation.

The future of the company, which is trying to take the former president’s Trump Media and Technology Group public, remains up in the air. A shareholder vote on whether to approve an extension of the deadline to complete the merger has been postponed until November 22.

After initially failing to get a vote in September, the SPAC’s sponsor, ARC Global Investments, contributed about $2.9 million to extend the merger deadline to Dec. 8, according to federal filings.

The main product of the Trump Media and Technology Group right now is the conservative social media site Truth Social, a right-wing alternative to Twitter.

DWAC stock closed lower but still fell 3.5%. It’s about 68% higher so far this month, but has lost nearly 46% for the year. Donald Trump’s stock is in the bottom 19% of stocks in terms of stock market performance over the past 12 months.

Futures: GOP To Retake House? Elon Musk is selling more TSLA shares

Coinbase Stock, Bitcoin Rally After Move

COIN stock and Bitcoin exploded before giving up gains and more.

They rallied from the lows after it was revealed that Binance had reached a deal to buy crypto exchange FTX. But the gains soon disappeared.

In a tweet, Binance CEO Changpeng Zhao said they were coming to the company’s aid.

“This afternoon, FTX asked for our help. There is a significant liquidity crisis,” he said. “To protect users, we have signed a non-binding LOI, intending to fully acquire and help cover the liquidity crisis.”

It’s a remarkable reversal of fortune for FTX, which is led by CEO Sam Bankman-Fried. Earlier in 2022, it was valued at $32 billion by private investors.

Binance is the world’s largest crypto exchange with 24-hour trading volume.

After briefly turning positive, COIN stock reversed sharply and ended the day down 10.8%. It continues to trade below all major moving averages. Shares are down nearly 80% since the start of the year.

Bitcoin also saw losses intensify after briefly rallying from the day’s lows. It was trading just above the $18,000 mark after falling 11%. It’s down for the year.

Other cryptocurrency games have struggled. Grayscale Bitcoin Trust (GBTC) fell 12.4% while Bitcoin mining game Riot Blockchain fell 7.3%, albeit at lows for the day.

ZeroHedge tweeted that the FTX liquidation hit shares, sending them high.

Off Dow Jones: 3 Test Stock Entries

Albemarle briefly passed a 308.34 consolidation buy point but closed below that level. It also cleared an early entry of 287.98, just above the November 1 high.

Overall performance is strong, with the stock holding a perfect IBD Composite Rating of 99.

Charlotte, NC-based Albemarle is the world’s largest lithium producer and one of the largest suppliers of lithium for electric batteries. The company already supplies the critical metal to the EV giant Tesla (TSLA).

BJ’s wholesale club tested a 78.93 handle mug entry. The relative strength line just hit a new high, a bullish sign.

Earnings are a key asset for retail stocks. Big money has been buying stocks lately, with the Accumulation-Distribution Rating coming in at B+.

Fabrinet is sitting in a buy zone after clearing a 118.15 handle mug buy point. It fell to strong gains.

With the current uptrend in the stock market still under pressure, the stock market now carries additional risk.

Follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.


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