What the Dow Told us About the Election Today
Nov 6th 2012 6:05PM
Updated Nov 6th 2012 6:06PM
In the final hours before the extremely tight 2012 elections finally come to a close, the markets rejoiced, bidding up stocks on the belief that there will be a definitive winner declared tonight or tomorrow. The Dow Jones Industrial Average (INDEX: ^DJI) jumped 133 points, or 1.02%, to close at 13,245.
Leading the Dow upwards was technology titan Hewlett-Packard (NYS: HPQ) , surging up nearly 2.8% on the day. With HP's chips in the new Windows Phone 8, it will be interesting to see whether that alone is enough to revitalize a stock that has been the worst performer in the Dow this year.
Aerospace behemoth Boeing (NYS: BA) was the third highest gainer in the index on Tuesday, tacking on more than 2.2% on the day. Investors may see a quick resolution to the election as a net positive for Boeing more than for almost any other stock in the index, because the impending "fiscal cliff" needs desperately to be worked out in a timely manner. As it stands now, the fiscal cliff would mean huge cuts to the defense budget, and defense contractors like Boeing would be hit extremely hard.
One of only two declining stocks in the Dow today was Intel (NAS: INTC) , which fell more than half a percent on rumors that technology giant Apple (NAS: AAPL) is planning on abandoning Intel chips in future versions of its Mac personal computers. The dissolution of Intel's alliance with Apple -- the largest public company in the world -- would be a powerful blow against the company, which has been struggling to maintain its dominance in the chip market as a shift to mobile computing changes the industry dynamics.
More than anything, the Dow's jump today means the markets think we will wake up tomorrow and know who our next president is. Given how close the race is, though, if that doesn't happen, stay tuned for a volatile few days of trading.
In the past, when it's come to dominating markets, it hasn't gotten much better than Intel's position in the PC microprocessor arena. However, that market is maturing, and Intel finds itself in a precarious situation longer-term if it doesn't find new avenues for growth. In this premium research report on Intel, our analyst runs through all of the key topics investors should understand about the chip giant. Better yet, you'll continue to receive updates as news develops for an entire year. Click here now to learn more.
The article What the Dow Told us About the Election Today originally appeared on Fool.com.John Divine owns shares of Apple. You can follow him on Twitter, @divinebizkid , and on Motley Fool CAPS, @TMFDivine . The Motley Fool owns shares of Apple and Intel. Motley Fool newsletter services recommend Apple and Intel. Try any of our Foolish newsletter services free for 30 days. We Fools dont all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.