Editor's Note: Below is an excerpt from today's Early Look morning newsletter written by Hedgeye Director of Research Daryl Jones.
"We'd be remiss if we didn't highlight this morning the special congressional elections in Georgia and South Carolina. Much to the chagrin of partisan Democrats, the Republicans won both. The big loss of course was in Georgia where the Democrats dramatically outspent Republicans.
Now of course, you might ask why does one Congressional race really matter? Given that Democrats spent $31 million on the race and Republicans spent $23 million, we'd argue quite a lot in terms of momentum. As an aside, that is $54 million spent on just over 250,000 voters!
On the margin, and that is where things happen, the Republican congressional agenda just received a boost. This doesn't of course resolve the albatross in the room, which is President Trump's approval rating. We've highlighted this today in the Chart of the Day via a poll aggregate from fivethirtyeight.com. Currently Trump's approval rating remains mired at his lows of 38.6%. But the fact that Trump actively campaigned in these races and that big candidates won will help his standing with the Republican congress."
