Markets ended in the green yesterday, as uncertainty over the
White House race was about to end soon. The election results are
expected to be declared late Tuesday or early Wednesday. The
result of the presidential elections will play a vital role in
determining different economic policies till 2016. Energy and
material sectors were the major gainers among the S&P 500
industry groups for the second consecutive day.
The Dow Jones Industrial Average (DJI) rose 1.0% to close the
day at 13,245.52. The Standard & Poor 500 (S&P 500)
gained 0.8% to finish yesterday's trading session at 1,428.35.
The tech-laden Nasdaq Composite Index advanced 0.4% to end at
3,011.93. The fear-gauge CBOE Volatility Index (VIX) tumbled 4.6%
to settle at 17.58. Total volumes on the New York Stock Exchange
were 3.30 billion shares. Advancing stocks outpaced the decliners
on the NYSE; as for 69% stocks that rose, 28% stocks moved
Benchmarks rallied throughout the day as the uncertainty over
the U.S. Presidential election was about to end. The rally in the
market helped the Dow to gain more than hundred points. The
uncertainty has kept the market stagnant for the past few weeks.
According to the market experts, if Republican candidate Mitt
Romney wins, then healthcare, energy and defense shares may go
Mitt Romney has already announced that if he wins then U.S.
Federal Reserve Chairman Ben Bernanke will have to resign. Ben
Bernanke's exit would create uncertainty over the future of QE3.
The Fed had announced on September 13 that it will buy back
mortgage-backed securities worth $40 billion per month. This is
an attempt to pull up a flagging economy and improve the labor
market situation. The announcement of a third round of bond
purchases had received wide acclaim.
Interestingly, whoever wins the election will have to solve a
series of problems that the U.S. economy is currently facing. The
fiscal cliff of $600 billion in spending and tax increases, which
will expire at the end of this year, need to be resolved or else
it may reportedly result in another recession. The $600 billion
fiscal cliff has been affecting domestic markets for months.
Coming to corporate earnings, Computer Sciences Corporation
) surged 17.0% after the company reported a second-quarter
profit, which came in above the Street's estimates. AOL, Inc.'s
NYSE:AOL) shares jumped 22.0% after the company reported
better-than-expected profits and revenues in the third-quarter.
AOL's quarterly results were boosted by strong advertising
The Energy Select Sector SPDR (XLE) gained 1.6% and was the
major gainer among the S&P industry groups. Stocks such as
Exxon Mobil Corporation (NYSE:
), Chevron Corporation (NYSE:
), Marathon Oil Corporation (NYSE:
), Petroleo Brasileiro Petrobras SA (NYSE:
) and BP plc (NYSE:
) surged 1.1%, 1.1%, 2.3%, 1.2% and 2.0%, respectively.
The materials sector also had a good run yesterday and ended
in the positive zone. The Materials Select Sector SPDR (XLB)
gained 1.1%. Stocks such as E I Du Pont De Nemours And Co (NYSE:
), The Dow Chemical Company (NYSE:
), Merck & Co., Inc. (NYSE:
), PPG Industries, Inc. (NYSE:
) and Eastman Chemical Company (NYSE:
) rose 0.5%, 1.5%, 0.6%, 1.2% and 0.7%, respectively.
AOL INC (AOL): Free Stock Analysis Report
BP PLC (BP): Free Stock Analysis Report
COMP SCIENCE (CSC): Free Stock Analysis
CHEVRON CORP (CVX): Free Stock Analysis
DU PONT (EI) DE (DD): Free Stock Analysis
DOW CHEMICAL (DOW): Free Stock Analysis
EASTMAN CHEM CO (EMN): Free Stock Analysis
MERCK & CO INC (MRK): Free Stock Analysis
MARATHON OIL CP (MRO): Free Stock Analysis
PETROBRAS-ADR C (PBR): Free Stock Analysis
PPG INDS INC (PPG): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
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