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“It doesn’t take a hero to order men into battle. It takes a hero to be one of those men who goes into battle.”  ‒ H. Norman Schwarzkopf

Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.  

Fixed income markets are closed this morning in observance of Veterans Day, but the equity markets are open for a full session, and futures suggest a continuation of the post-election rally as crude oil and gold continue to pull back and Bitcoin surges above $80,000. Given the holiday, there’s no economic data on the calendar and little in the way of earnings news, but that will change in the days ahead with CPI on Wednesday and PPI on Thursday. These reports will take on added significance given the upward move in rates lately and comments from Federal Reserve officials that the pace of rate cuts may slow in the months ahead. For now, though, Newton’s first law of motion still applies.

Overnight in China, inflation for the world’s second-largest economy showed more downward pressure as CPI declined 0.3% m/m in October taking the year/year rate down to 0.3% while PPI fell 2.9% relative to last year. Between this data and China’s underwhelming stimulus measures announced after the local market close on Friday, stocks in the country had a mixed start to the week with the Shanghai Composite trading up 0.5% while Hong Kong’s Hang Seng fell 1.5%.

The tone has taken a more decidedly bullish tone in Europe, where the STOXX 600 spiked more than 1% higher to start the week, even with no specific catalyst driving the gains.

The election has come and gone, and with it, the S&P 500 surged 4.7% last week in the third-best Presidential election week performance for the index since 1928. The only two weeks with better returns were the 11.6% gain in 1932 as FDR was elected and the 7.3% gain in 2020 after President Biden was elected. We’d also note that the 3.8% gain following Trump’s 2016 election ranks the fourth best tied with former President Clinton’s re-election in 1996.