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Bob Carey
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  US Stocks Ended Nov. 11, 2016
Posted Under: Weekly Market Commentary
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Stocks surged, with the Dow Jones Industrial Average hitting a new all-time high on Friday, as shares of banks, drug companies, and economically sensitive stocks rallied amid speculation President-elect Donald Trump will enact business-friendly policies. Financial stocks were the best performers for the week and posted their biggest weekly gain since 2009 as the potential for less regulation and higher interest rates left investors more optimistic about future profits. Another perceived benefactor from the election results was industrial stocks in anticipation of Donald Trump's plan to spend $1 trillion on new infrastructure construction. Low volatility and defensive sectors sold-off as higher bond yields and optimism over Trump's policies led bond-like stocks to lag the broader market. In stock news, Hertz Global Holdings shares fell over 15% for the week as higher-than-expected depreciation costs led the car rental service to reduce full year earnings guidance. Despite missing on both the top and bottom lines for the quarter and weakness at ESPN, shares of Walt Disney Co. rose following earnings as growth should be more robust in the next few years due to a strong movie slate. Shares of Celgene Corp. and Biogen Inc. rose over 15% for the week, while health care providers LifePoint Health, Inc. and Tenet Healthcare Corp. both fell by more than 15%. Drug stocks rose as a Clinton victory most likely would have resulted in a push for drug-pricing control, while hospital stocks fell as the potential for repeal of parts of the Affordable Care Act could lead to lower profits. Looking ahead, equity markets will continue to digest a surprise Trump win and look to the formation of his transition team and further disclosure of his economic policies.
Posted on Monday, November 14, 2016 @ 7:58 AM • Post Link Share: 
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These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
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