What we’re reading (11/5)
“Americans Were Given The Coronavirus Option To Raid Their 401(k). Most Didn’t” (Wall Street Journal). “Despite the financial toll of the coronavirus pandemic, few American households have raided their retirement accounts to make ends meet. Faced with the prospect of surging unemployment and a declining economy, Congress in March passed a law that temporarily allows Americans to use their retirement money today. But so far, there hasn’t been a rush of funds out of accounts. Fidelity Investments, the largest 401(k) provider in the country, has seen 4.6% of eligible people take some money out through Sept. 30 due to the virus.”
“Here’s Why The Stock Market Is Rallying Even Though The Election Outcome Is Still Uncertain” (CNBC). “The lack of a blue wave makes higher taxes and more regulation less likely, and that’s enough to rally stocks for now…traders are betting on a split Congress with a Republican Senate and Democratic House. Some Senate races were still uncalled Wednesday, and several key states were still counting votes and too close to call. Stocks bounced higher Wednesday, led by the Nasdaq which rose 3.9% as big tech, like Amazon and Apple surged.”
“As ‘Blue Wave’ Chances Crash, Wall Street Warms To Divided Government” (New York Times). “After weeks of buying and selling stocks on the expectation that Democrats would sweep both the White House and Congress in a ‘blue wave,’ Wall Street investors lost little time in returning to their traditional political posture: Gridlock is good. On Wednesday, bleary-eyed investors, traders, executives and analysts who had stayed up until the wee hours tracking election results predicted that Joseph R. Biden Jr. was likely to eke out a presidential victory while Republicans maintained their grip on the Senate and Democrats continued to hold the House. The resultant divided government seemed like it could be good for business: Stock and bond prices went sharply higher, with the S&P 500 closing up 2.2 percent.”
“Stocks Build On Post-Election Rally As Presidential Race Inches To A Finish” (Washington Post). “Stock indexes pointed Thursday to a third straight day of gains for Wall Street as the U.S. presidential election inched closer to conclusion. Moments after the opening bell, the Dow Jones industrial average was up nearly 400 points, or 1.5 percent, at 28,282. The S&P 500 index leaped 1.6 percent, to 3,499, and the tech-heavy Nasdaq rose nearly 1.8 percent, to 11,793, as investors flocked back to tech after recent sell-offs. The S&P and Nasdaq both notched their best post-election day performance on Wednesday.”
“Jeff Bezos Dumped $3 Billion Worth Of Amazon Stock” (CNN Business). “Jeff Bezos sold more than $3 billion worth of his Amazon stock this week, taking advantage of a 75% surge in his company's value this year. The Amazon CEO didn't explain why he sold so many shares, but he regularly sells off his stock, often using it to fund his Blue Origin space company and other ventures.”
