Stocks Rise as Investors Wait for a Presidential Winner


Stocks on upswing with election
By MATTHEW CRAFT

NEW YORK -- Major stock-market indexes climbed Tuesday as investors waited for the finish of a closely fought U.S. presidential election.

The Dow Jones industrial average was up 146 points at 13,259 just before 1 p.m. EST.

"We're on pins and needles," said Phil Orlando, chief equity strategist at Federated Investors, a money management firm. Orlando, who backs Republican Mitt Romney, said he thought the gain reflected optimism that Romney could win.

Companies that investors believe would benefit under a potential Romney administration had some of the biggest gains. They included United Technologies and Boeing, which do substantial business with the Defense Department.

Four financial companies -- Travelers, American Express, JPMorgan Chase and Bank of America -- were among the 10 biggest gainers in the 30-stock Dow average.

Other investors say that they simply want the election behind them. That will allow Wall Street and Congress to focus on the so-called fiscal cliff, the tax increases and government spending cuts scheduled to take effect Jan. 1.

In other trading Tuesday, the Standard & Poor's 500 index rose 14 points to 1,431, while the Nasdaq composite index gained 20 points to 3,020.

Among other winners, Computer Sciences leapt 15 percent, the largest gain in the S&P 500, after its earnings blew past analysts' estimates. The stock was up $4.72 at $36.18.

In the market for government bonds, the yield on the benchmark 10-year U.S. Treasury note dipped to 1.69 percent. The price of oil climbed 82 cents per barrel to $86.47 in New York trading.

Even with the early surge Tuesday, it figured to be a quieter Election Day for the stock market than last time.

During the financial meltdown four years ago, big swings in the market became commonplace. On Nov. 4, 2008, the Dow shot up 305 points, easily the biggest Election Day rally of all time. Investors expected a victory for Barack Obama.

On Election Day 2004, the prospect of a close election led to a late sell-off, and the Dow finished down 18 points, snapping a five-day winning streak. John Kerry didn't concede to George W. Bush until the following day.

Among other stocks making big moves:

• Weight-loss company Medifast rose $2.14 to $28.96 after reporting that its third-quarter earnings increased more than 40 percent as expenses fell and the company got strong responses to its ads and new programs.

• Express Scripts dropped $8.23 to $54.65. The pharmacy benefits manager warned that persistently high unemployment and economic uncertainty would hurt its business next year.

• NYSE Euronext fell $1.40 to $24.20. The parent company of the New York Stock Exchange reported Tuesday that its quarterly earnings fell by nearly half. A drop in the number of transactions it handles pulled down revenue.

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ingeniousinvesting

Historically the S&P 500 has generated a positive return for the following 6 months - 1 year after the election. With the fiscal cliff looming it will be very interesting to see how the market performs going forward.

www.ingeniousinvesting.com

November 06 2012 at 4:37 PM Report abuse rate up rate down Reply
freethedems2012

It goes up in anticipation of a Romney win.

November 06 2012 at 3:52 PM Report abuse +2 rate up rate down Reply
jtmpmm

This writer is very good at putting his biases in print. The fact is that the stock market is way up the past 3 years and no election was pending. Get a grip.

November 06 2012 at 3:13 PM Report abuse rate up rate down Reply