Stocks rose Wednesday despite the uncertainty surrounding the too-close-to-call presidential election between Donald Trump and challenger Joe Biden.
The Dow Jones Industrial Average rose 740 points, or 2.69%, to 28,220, the S&P 500 gained 3.23% and the Nasdaq jumped 4.3%.
TheStreet's Katherine Ross discussed breaking news in the stock market with Jim Cramer who spoke about the status of the coronavirus stimulus package, auto stocks and the markets rally one day after voting closed in America.
Early vote counts in most states suggest Democrats will retain control of the House of Representatives, putting the chances of a near-term stimulus deal on ice.
Cramer said there will be a coronavirus stimulus package. "It will be led in a very matter of fact way by Secretary Mnuchin with Speaker Pelosi if she is still willing to talk to them. It's entirely possible she won't. But I think she wants to put some dinner on the table for those 13-14 million people expected to lose their jobs over the net three months because of hospitality and the cold weather while covid is running rampant."
Future of EVs
Electric car makers like Tesla (TSLA) - Get Report and Nio (NIO) - Get Report could benefit from a Joe Biden presidency. Shanghai-based electric carmaker Nio delivered more than double the number of electric vehicles it churned out a year ago, prompting a jump in its American depositary receipts trading in New York.
While Tesla Chief Executive Elon Musk said the company will be unveiling its updated Cybertruck design in "a month or so."
Cramer said under Biden the future of electric vehicles would be advanced. "He could do a lot of different things that would make it so that there are more incentives. It would speed up the demise of the corporate stocks by about 5 years. It's happening on its own but you could really push the pedal to the medal."
How To Trade on Wednesday
Cramer said market participants love that the Senate is staying red. "So there is no blue wave and therefore buyers have come back. It's also entirely possible that if Biden gets in he can't wreck capital gains by taking the rates up. So, a lot of people want to get back into the growth stocks that have been hurt so badly. Presuming that Biden might get the blue wave and rates will go up but that's not the case. Almost everything is up barring the few Trump stocks that are out there."
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