Trader Talk

Election results having little impact on stocks

U.S. Senator Mitch McConnell (R-Ky.) during his election night victory rally with his wife, former United States Secretary of Labor Elaine Chao.
Shannon Stapleton | Reuters

How much are the election results impacting the stock market? Not much.

True, there are modest moves up in stocks associated with the Keystone XL pipeline TransCanada (TRP) and Canadian Natural Resources (CNQ), both up 4 and 6 percent respectively.

The big move has been in the Energy sector in general, but most of the move up occurred midday, when both Brent and West Texas Intermediate crude moved up on reports of a disruption in a Saudi Arabian pipeline.

The Saudis have still not provided details on what--if anything--happened, but it clearly moved oil and oil stocks. One source said it was a fire that had been extinguished.

There are modest moves up in some medical device makers (hopes the medical device tax might be repealed), though separately Covidien (COV) reported strong earnings.

There has also been some hope that the election results would be a positive for drug companies (less chance of government interfering in drug pricing). But these ideas have been well vetted, and the results have been almost exactly as Wall Street expected.

Elsewhere, NASDAQ and Russell 2000 have drifted in and out of negative territory all day. Some crowded long names missed earnings overnight: TripAdvisor (TRIP) is down almost 15 percent, for example, as is FireEye (FEYE).

Priceline (PCLN) is down again after providing disappointing guidance yesterday. Twitter (TWTR) reversed into negative territory.

Big names like Amazon (AMZN), Google (GOOG) and Facebook (FB) have been down all day.

Then there seems to be a bit of de-risking going into earnings: look at Tesla (TSLA) and SolarCity (SCTY), both reporting after the bell, both associated with Elon Musk, SCTY down 9 percent, Tesla down 3 percent, as is FEYE.