Big tech stocks climb as ‘blue wave’ fails to materialize, easing antitrust concerns

A “blue wave” expected by some prognosticators prior to Election Day in the U.S. on Tuesday that would have enabled Democrats to win the White House, seize control of the U.S. Senate, and retain or gain seats in the House was headed for failure Wednesday, easing worries over tougher antitrust enforcement for big tech stocks — Apple, Alphabet’s Google, Facebook, and Amazon.

Current U.S. Presidential Election Results (Nov. 11, 2020, 10:03am EDT)
Current U.S. Presidential Election Results (Nov. 11, 2020, 10:03am EDT)

Reinhardt Krause for Investor’s Business Daily:

“The Republicans have significantly outperformed polls coming in to the election, and especially their worst case scenarios,” said a Barclays report. “A progressive Blue Wave — where the Democrats won the Presidency as well as flipped several Senate seats — is now definitely off the table.”

Apple stock rose 2.8% to near 113.50 in early trading on the stock market today. Facebook stock advanced 3.2% to near 274 while shares in Twitter, also a leading social media platform, gained 2.9% to 42.95. Amazon stock climbed 2.6% to near 3,127. Google stock rose 3.1% to near 1,697.

“Although ballot counting could be in progress for days, the most unusual U.S. election in modern history is leaning towards a familiar outcome — a divided government,” said a JPMorgan note to clients. “We do not see Congress agreeing on antitrust legislation unless both houses of Congress and the Presidency are controlled by the same party, as the parties have had difficulty reaching consensus on more pressing issues,” Wedbush analyst Daniel Ives said in his note to clients earlier in the week.

A Biden Justice Department and/or Federal Trade Commission would pursue action against the online stores operated by Apple and Google, Cowen analyst Paul Gallant said in his report to clients… Trump’s Justice Department recently sent a letter to congressional leaders pushing for changes in Section 230 rules, reports say. Some Democratic lawmakers also favor taking a fresh look at the rules.

MacDailyNews Take: Hey, at least we live in interesting times!

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