U.S. stock indexes rose for a third consecutive day, climbing above their 50-day moving average lines, as the market took a second, more bullish take on a Trump presidency.
The Nasdaq popped 1.1% and closed bullishly high in the day's range. The S&P 500 also grabbed a 1.1% gain, while the blue chip Dow Jones industrial average rose 1.4%. The small cap S&P 600 led with a 3.1% surge. Volume in the stock market today was higher across the board. The market outlook was upgraded to "uptrend resumes."
Many of the day's leaders and laggards were reacting to the presidential and congressional elections. Small cap HealthEquity (HQY) roared 12% higher in busy volume. The provider of health savings accounts is likely to benefit under a Republican Senate, House and presidency. President-elect Donald Trump has endorsed health savings account in the past as part of an alternative to ObamaCare, which is likely to be either overturned or amended.
The Medical-Hospitals industry group was the day's biggest loser, according to preliminary data. The group lost almost 10%, easily the worst among 197 industry groups. If ObamaCare is overturned, hospitals are likely to encounter more patients without medical insurance and in some cases, no way to pay the bills. Republicans haven't made clear what they would do to address the problem.
On the upside, groups showing strong gains included steel producers, coal, construction equipment and cement-related companies. United States Steel (X) gapped up 17%. Westmoreland Coal (WLB) jumped 18%. Caterpillar (CAT) gapped up 8%. And three stocks in the cement group — Eagle Materials (EXP), Martin Marietta Materials (MLM) and Vulcan Materials (VMC) — each staged breakouts from cup bases. A heads-up on the cement stocks was offered in Friday's Big Picture column.
The market showed resilience in the wake of the election. On Tuesday night, futures sold off sharply as it became clear that Hillary Clinton would likely lose. But the fearful money exhausted itself in the first hour of trade Wednesday.
The sell-off probably said less about the overall market than it did about the two candidates. Under Trump and a Republican Congress, different winners and losers are likely in the stock market than under Clinton. Investments that had bet on a Clinton victory probably were sold and shifted to stocks likely to benefit under Trump. More of that could continue in the days ahead.
RELATED:
