Your Morning Market Update (One Day From Election)

[image] Dear Aspiring Investor, The S&P futures added more than 1.3% before the bell Monday. The uptick comes as the the Dow Jones and S&P 500 attempt to bounce back from their worst week since March. Investors are digesting several market headwinds. Voting for the 2020 election "ends" tomorrow. Yet, concerns exist about the media reaching a final tally by Tuesday night. New daily virus cases have now surpassed 100,000 Americans. Everyone is eyeing the Fed and Congress on the timing of new stimulus. Oh… and there’s the October jobs report on Friday. This will be a very busy week. That’s why I want you to stay informed and stay active in your investing and trading. You don’t want to miss any buying opportunities. You also want to avoid any massive overreactions by investors. [image] I’ll be here to help guide you through any surprises. As I noted, yesterday, I am now sending you my morning commentary on the markets. This insight is part of your free RagingBull Investor subscription. This addition includes key stories I’m following. I'll also cover stock tickers making headlines... my daily STOCK WATCH LIST, and MUCH more. So, let’s get started. The Rundown: Today’s Top Market Stories FAANG IN FOCUS I’m paying close attention to this week's performance of five key stocks. I'm watching Facebook, Apple, Microsoft, Amazon, and Alphabet. These five companies now comprise 23% of the S&P’s weight. We’ve seen these firms issue lackluster guidance, despite somewhat positive economic data. This is quite a top-heavy index right now. That’s what happens when money has few places to go. The 10-year bond is 0.86%. Gold is stuck again under $1,900. It appears investors are buying FAANG stocks as a store of value. [image] But things could change this week. Sentiment remains under pressure. Concerns about antitrust actions and valuations will drive sentiment in the weeks ahead. We’ve seen quite a pullback since the S&P 500 hit its record back during the first week of September. But FAANG+ investors are watching Congress. Antitrust concerns appear to be the only issue receiving bipartisan support. The DOJ’s new lawsuit against Google was the agency’s first against a Silicon Valley giant since 1998. Back then, the DOJ sued Microsoft. I’ll be watching the inflows and outflows of these stocks all week. "VIRAL" CONTENT The virus remains the central focus of the economy one day ahead of the election. On Sunday, New York announced a policy requiring inbound travelers to test negative before arrival. The announcement coincides with news that the United States saw another 99,321 new cases. Scientists are warning that this latest surge is just the beginning of a much larger wave. More lockdowns appear on the horizon. [image] U.S. scientists are pointing to the surge of cases in Europe as our future. Infections across Europe have doubled in the last five weeks. Things are much worse in Belgium, the United Kingdom, France, Poland, and more nations. They’re all reporting their highest daily cases. And increased testing isn’t causing the rising numbers. BUSY BUY MONTH In November, my Portfolio Creator will be busier than ever. I’ll be unveiling my favorite new trend in fast-money tech. And I’ll be releasing my top pick for a massive shift in how colleges operate over the next decade. I’m doing it all for a very special price… less than $1 per week in 2021 [Join today and get access]( to my latest stock picks and FULL PORTFOLIO. DON'T FIGHT THE FED People can chatter all day about the virus and the election. The REAL market story isn’t at 1600 Pennsylvania Avenue tomorrow. It’s over at the Federal Reserve Building. The Fed Open Market Committee will kick-off its two-day policy meeting Tuesday. Boy… talk about timing. No one anticipates that the Fed will change its policy on interest rates. But I expect that Fed Chair Jerome Powell uses his Wednesday conference as a call for sanity in Washington. The Fed can only do so much for the economy with monetary policy. Powell will likely call on Congress to move with a direct stimulus to help boost the economy. Will anyone listen? That is a nine-dollar question. THERE’S AN ELECTION? WHO’S RUNNING? There’s an election tomorrow. It’s crunch time for the candidates. I advise everyone to hit the liquor store before 6 pm. Otherwise, the remaining pickings might be left to Peach Schappes or Drambuie. Everyone is watching the polls and speculating. Not me. I’m watching equipment and infrastructure stocks. I’m watching companies like Caterpillar (CAT) and Brookfield Infrastructure Partners (BIP). Speaker Nancy Pelosi has promising action on infrastructure should Joe Biden win. It's also important to remember that $2 trillion in stimulus is still on the table. We could see some movement in these stocks due to polling shifts. This week is presenting itself as a Buy the Dip – long-term situation. I’d want to focus on the stocks that combine strong dividends and upside regardless of who wins the election. Buyers will need a strong stomach in the short-term. But these are the times that many investors might look back on and wonder why they didn’t take advantage of the situation. TODAY’S TOP STOCK TICKERS PYPL: PayPal is leading a busy day of earnings reports. This is a stock that is up more than 70% since the start of the year. Outside the Fed’s liquidity pump, PayPal benefited from the shift to e-commerce and its Venmo division. The company also saw strong expansion across Europe through its MasterCard debit partnership. XOM: Exxon Mobil stares continue to slide due to slumping oil prices. WTI Crude is back under $35 and back at a five-month low. Exxon has announced 1,900 job cuts across its divisions, and more could come. A CNN report suggests that a reorganization of the entire company will see a reduction of 14,000 additional jobs by 2023. With shares off 50%, investors would be wise to steer clear, even with a +10% dividend. Axios issued a scathing report about the company and its plans over the weekend called “[The Fall of an Empire](.” CHART OF THE DAY RTX: Raytheon Technologies [image] The dip last week in defense stocks came on two stories. One, China has sanctioned several U.S. defense companies. And second, with the election ahead, some are speculating that Joe Biden would cut defense spending if elected. Gregory Hayes, the CEO of Raytheon dismissed this claim, noting that the U.S. had lost its “technological edge to the Chinese, and in some cases to the Russians. Hayes continued: “We’re going to have to invest more dollars into some of these new technologies if we’re going to be able to compete with these new threats.” Then, with the stock below its moving averages and with many questioning the company’s future, he did something I like to see. He bought the stock. A whole lot of it as well. He purchased more than $3.35 million in company stock after the pullback. The stock was trading well below all of its moving averages. Several directors loaded up on the stock as well. As I’ll explain tomorrow, insider buying in large volumes is traditionally bullish for a stock. MY MONDAY STOCK WATCH LIST M&T Bank (MTB) - As the month starts, I’m looking for stocks that pay solid dividends and like a bargain. MTB has an average price target of about $120 and a 4.25% dividend. I am hoping for a post-election pop for banks if the Fed and Congress both commit soon to more stimulus. The company just beat EPS by 5.5% and there wasn’t any revision to its baseline for 2021. This stock is a value, and I expect a rotation into value stocks next year. AT&T (T) - Shares are back at $27. The dividend is 7.7%. This is pretty incredible. I expect that hedge funds will continue to press for divestments and payment of its debt. The latest Wall Street "Buy" ratings project a price target of around $34.00 to $36.00. There's a chance to combine this upside with a strong dividend. That would make for a pretty incredible total return. Apollo Management (APO) - The hidden way to play the election? It might just be in the private equity sector. Apollo a big commitment to infrastructure and still has a lot of dry powder sitting on the sidelines. Shares are sitting at $37.50 with a 6.5% dividend. It’s the sort of “Buy and Hold” that I’m always looking for in my Family Portfolio. Plus, given the liquid options chain, it can produce even more income. Academy Sports & Outdoors (ASO) - We might see another Democrat in the White House. If so, I expect a lot of chatter about guns and ammo. The last time gun fever spread, Smith and Wesson had a better four-year run than Apple (AAPL). SWBI is no longer a well-run business. But ASO is. It has a much bigger penetration in Texas and Florida. I also like its strong link to private equity firm KKR (KKR). Trulieve (TCNNF) - I first wrote about Trulieve last [April](. The stock closed at $9.63 the day I recommended it. Today, shares trade at $23.54. That’s a 144% jump since 4/9/2000. But I think that gain is just the start of something special. Cantor Fitzgerald just reiterated its Buy rating and set a price target of $60.00. If Biden and Harris win, pot stocks could rally on the hope of decriminalization. I'm not so focused on this as I am on the broader trend toward recreational legalization. Trulieve is the best-in-class cannabis company. It's profitable. It dominates the Florida market. And it still trades at a low buyout figure. Cantor’s price target appears reasonable to me. That’s all for Monday. [image] Jeff Bishop  [Unsubscribe]( DISCLAIMER: To more fully understand any Ragingbull.com, LLC (“RagingBull”) subscription, website, application or other service (“Services”), please review our full disclaimer located at . 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