Dow gains 19 in pre-election trading

The major indexes move ahead in afternoon trading. Apple rises after selling 3 million iPads over the weekend. Crude oil and gold move higher. Investment bank KBW agrees to merge with Stifel Financial. Toyota profits jump.

By Charley Blaine Nov 5, 2012 2:01PM
Charley BlaineUpdated: 7:56 p.m. ET

Stocks closed with small gains today, the last full session before Election Day. It was a day of low volume as many investors and traders began to hunker down, awaiting election returns.

There was some strength in technology shares, in part because Apple (AAPL) said it sold 3 million iPad tablet devices over the weekend -- a possible signal of a strong holiday season. Apple finished up $7.82 to $584.62; the shares had reached as high as $587.77.

Housing stocks were higher, although there was no news. But investors appear to be betting that the rebound in housing activity that began this year will continue in 2013 regardless of who wins the presidential election on Tuesday.

Gold (-GC) settled up $8 to $1,683.29 an ounce, and crude oil (-CL) in New York closed  at $85.65 a barrel, up 79 cents. Brent crude, which many traders believe is a better measure of global demand, also was higher.

The Dow Jones industrials ($INDU) closed up 19 points to 13,112. The Standard & Poor's 500 Index ($INX) gained 3 points to 1,417, and the Nasdaq Composite Index ($COMPX) climbed 18 points to just under 3,000. The modest gains came after a strong rally on Thursday and a drubbing on Friday that saw the Dow fall 139 points. 

Article continues below.
The Nasdaq-100 Index ($NDX) was up 17 points to 2,673, with 61 stocks in the index showing gains.

The calm before  . . .
The day  before Election Day is usually fairly quiet -- even in November 2008, when the Dow and S&P 500 closed slightly lower on the Monday before the election. The Nasdaq had a small gain that day. On Election Day itself, the Dow jumped more than 300 points -- and fell more than 800 in the two days after then-Sen. Barack Obama defeated Sen. John McCain.

On Nov. 6, 2000, the day before the George W. Bush/Al Gore election, the Dow was up 135 points, with the S&P 500 up 6 points. The Nasdaq, however, fell 35 points. Once the reality hit that the Florida election count would end up in the courts, the market fell back sharply.

Most polls suggest an extremely close result, with Obama expected to defeat former Massachusetts Gov. Mitt Romney and Democrats maintaining control of the U.S. Senate. The House of Representatives is likely to remain in Republican control.

Intrade.com, the Irish betting site, and the Iowa Electronics Markets site, run by the University of Iowa College of Business, see the odds of an Obama win at better than 67%.  Both see narrow victory margins for the president.

The markets are, of course, open on Tuesday. (Actually, until 1982, stocks didn't trade on Election Day.) Earnings are due from News Corp. (NWSA), Fossil (FOSL) and Prudential Financial (PRU).

Futures trading suggests a modestly lower open.

Energy prices -- New York close



Mon.     Fri.

Month chg.

YTD chg.
Crude oil (-CL)

$85.65

$84.86

-0.68%

-13.34%
(per barrel)











Heating oil (-HO)

$2.9829

$2.9474

-2.59%

2.36%
(per gallon)











Natural gas (-NG)

$3.5540

$3.5540

-3.74%

18.90%
(per mil. BTU)











Unleaded gasoline (-RB)

$2.6202

$2.5736

-0.38%

-1.40%
(per gallon)











Brent crude 

$107.73

$105.68

1.94%

0.33%
(per barrel)











Retail gasoline

$3.4700

$3.4750

-1.45%

5.92%
(per gallon; AAA)












ISM non-manufacturing index slips
In the day's one big economic report, the Institute for Supply Management’s non-manufacturing index declined to 54.2 last month from 55.1 in September.

Economists projected 54.5. Readings above 50 signal expansion in the gauge of industries that account for almost 90% of the economy.

Sales and new orders slowed. But a measure of employment rose, indicating services firms hired more.

The report measures growth in a broad range of businesses from retail and construction companies to health care and financial services firms. The industries covered employ about 90% of the workforce.


A gauge of hiring rose to a seven-month high of 54.9. The government said Friday that services firms added 163,000 net jobs in October. It was the best showing since February and represented 95% of the jobs created last month.


Netflix moves to block Icahn
Netflix (NFLX) shares were up $1.34 to $78.24 after it announced it is protecting itself against hostile takeovers, less than a week after activist investor Carl Icahn disclosed a stake of nearly 10% in the online video company.


The company said today it has adopted a shareholder rights plan, also known as a poison pill. A poison pill is designed to make it difficult or even impossible for someone to take over the company without an agreement from the board. When the provision is triggered, additional shares flood the market and make it prohibitively expensive for a takeover.


In a Securities and Exchange Commission filing, Icahn called Netflix's poison pill "an example of poor corporate governance" because the company didn't seek a shareholder vote.


A boutique investment bank gets a merger offer
KBW
(KBW) jumped $1.7 to $17.47. The investment banking firm, which has specialized on the business in the financial services sectors, agreed to merge with Stifel Financial (SF) in a cash-and-stock deal valued at $575 million. Stifel rose 67 cents to $32.58.

FuelCell Energy (FCEL) climbed 12 cents to $1.03. The U.S. manufacturer of fuel-cell power plants announced its biggest order to date. Posco, South Korea’s largest steelmaker, agreed to pay about $181 million for 121.8 megawatts of power plants and services beginning in May, FuelCell said today in a statement.

Transocean (RIG) climbed $2.58 to $48.64. The world’s largest offshore rig contractor posted adjusted third-quarter earnings that exceeded estimates on improved cost control.

Time Warner Cable (TWC) slumped $6.24 to $91.93. It lost 140,000 video subscribers, more than the 128,000 that analysts had estimated. Time Warner Cable has become “top-heavy” after shares gained more than 54%, Todd Mitchell, an analyst at Brean Capital, told Bloomberg News. Its operations also aren’t as strong as those of industry leader Comcast (CMCSA).

Radian Group (RDN) tumbled 55 cents to $4.83 after Barron’s said the mortgage insurer may eventually incur costs for claims that it denied.

Toyota's big rebound sends shares higher
Toyota Motor
(TM) saw profits more than triple in the third quarter, as the company rebounded in a big way from the March 2011 earthquake and tsunami in Japan. The disaster crippled Toyota’s supply chain, and kept it from supplying dealers with new cars.

The company is still getting hurt by the strong yen, but has been able to take back market share that it lost in the U.S. after the earthquake. Toyota sold 1.26 million units in the U.S., versus 572,000 a year ago. Shares in New York rose $3.55 to $81.35.

The market sees modest gains
Seventeen of the 30 Dow stocks were higher, and a majority of shares in the S&P 500 and Nasdaq-100 indexes were up as well.

The Dow Jones Transportation Average ($DJT), watched closely as a leading indicator for the economy, was up  14 points to 5,124. The index was up 0.3% last week and is up 4.7% for the quarter.

Energy stocks, materials stocks (especially steel stocks) and tech shares were the leading sectors. Utilities and telecom shares were weaker.

Hewlett-Packard (HPQ), Caterpillar (CAT) and Walt Disney (DIS) were the Dow leaders. United Health (UNH) and Bank of America (BAC) were the laggards.

E*Trade Financial (ETFC), oil services company Cameron International (CAM) and chip-maker NVidia (NVDA) were the S&P 500 leaders. Wynn Resorts (WYNN), Time Warner Cable and Pall (PLL) were the laggards.

Nvidia, Flextronics (FLEX) and Texas Instruments (TXN) were the top Nasdaq-100 stocks. Sirius XM Radio (SIRI), Green Mountain Coffee Roasters (GMCR) and pharmaceutical company Warner Chilcott (WCRX) were the laggards.

Short hits from the markets -- New York close



Mon.

Fri.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.0900%

0.090%

-18.18%

800.00%
5-year Treasury note 

0.699%

0.728%

-2.24%

-15.78%
10-year Treasury note

1.684%

1.726%

-0.12%

-9.99%
30-year Treasury bond

2.871%

2.917%

0.70%

-0.62%
Currencies











U.S. Dollar Index

80.843

80.683

1.07%

0.40%
British pound

1.5972

1.6026

-1.02%

2.80%
(in U.S. $)

 








U.S. $ in pounds

£0.626

£0.624

1.03%

-2.72%
Euro in dollars

$1.28

$1.28

-1.36%

-1.32%
(in U.S. $)

 








U.S. $ in euros

€ 0.782

€ 0.780

1.37%

1.33%
U.S. $ in yen 

80.39

80.52

0.73%

4.26%
U.S. $ in Chinese

6.27

6.24

0.56%

-0.90%
yuan











Canada dollar

$1.005

$1.005

0.43%

2.40%
(in U.S. $)

 








U.S. dollar 

$0.996

$0.995

-0.35%

-2.34%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,683.20

$1,675.200

-2.09%

7.43%
(per troy ounce)

 








Copper (-HG)

$3.470

$3.482

-1.35%

0.99%
(per pound)

 








Silver (-SI)

$31.1280

$30.857

-3.68%

11.51%
(per troy ounce)

 








Wheat (-ZW)

$8.6600

$8.645

0.17%

32.67%
(per bushel)

 








Corn (-ZC)

$7.3550

$7.395

-2.68%

13.77%
(per bushel)

 








Cotton 

$0.7040

$0.7035

0.47%

-23.21%
(per pound)

 








Coffee

$1.5090

$1.547

-2.42%

-34.29%
(per pound)

 








Crude oil (-CL)

$85.65

$84.860

-0.68%

-13.34%
(per barrel)










 

485Comments
Nov 5, 2012 4:06PM
avatar

Less than a week before the presidential election, Christie will host Obama in New Jersey to survey Sandy damage. The governor created a buzz after saying this week that he had no intention of bringing the GOP nominee to the Garden State to survey storm damage first-hand.Folks don’t know the situation here following the storm,” a Christie adviser told POLITICO when asked if the governor is unhappy with the GOP nominee

Christie has been a frequent campaigner and fundraiser for Romney, appearing with him most recently in Ohio. Christie cancelled campaign appearances for Romney in Nevada that had been slated to occur on Tuesday after it was clear the storm was headed to his state.

The governor told Fox News that he has bigger things to worry about than the campaign.

“I have no idea, nor am I the least bit concerned or interested,” he said when asked if Romney would visit. “I’ve got a job to do here in New Jersey that’s much bigger than presidential politics, and I could care less about any of that stuff.”

Nov 5, 2012 4:05PM
avatar
     PRESIDENT BARACK OBAMA THE BLACK MAN WHO WEARS THE WHITE HAT.......

                                           "THE GOOD GUY"


           OBAMA/BIDEN 2012  FOR THE SAKE OF  AMERICA    
Nov 5, 2012 4:03PM
avatar

Clinton is out Beating the Drum for Obama.===================

 

WHILE MK BEATS HIS MEAT.

Nov 5, 2012 4:01PM
avatar

Team Romney Admits “Relief” Event Was Staged for Political Reasons

I also found this part of the story fascinating. The Romney campaign admits that the intent behind the rally was swing state election visibility, not hurricane relief:

But Boston wasn’t quite ready to lose a full day of swing state visibility with a week left in the race. So, after some deliberation, the campaign decided to use their existing venue in Ohio to stage a makeshift, and nonpartisan, humanitarian project. It would be a way for Romney to show leadership — and get on the local news — without looking craven or opportunistic.

They weren’t willing to lose a day’s visibility in a swing state, so they came up with the event and crafted it in a way that would still get them political benefit, but would camouflage the intent.  So, as I predicted, Team Romney saw Hurricane Sandy – saw the imminent peril of tens of millions of Americans – as a political "opportunity" to exploit.

Nov 5, 2012 3:59PM
avatar

How come GWB isn`t making speeches for Romney?For 8 years all we heard was the

media and the Repubs treating Bush like God.He was constantly defended and had

his but kissed by our mostly far right media and now people can`t remember him.

Nov 5, 2012 3:52PM
avatar

interesting day of sports talk - er, "politics talk". 

 

wednesday will be the interesting one.  except i am calling for an electoral "tie" that will take 3 weeks to settle out before we know who actually wins the election. 

Nov 5, 2012 3:49PM
avatar
How ignorant all of these comments are ! Regardless of the winner of tomorrows election , the market will fail again ! If you can't forsee the outcome of all the QE intervention being the ultimate spoiler , the market is not the place for you .
Nov 5, 2012 3:47PM
avatar
I have to admit. I have been dead wrong about Obama.


I used to believe he was the biggest liar and narcissistic in the history of US politics. I now know that to not be the case.

It is David Axlerod. Obama is now in 2nd place.
Nov 5, 2012 3:40PM
avatar
TWIT is about to have an Aneurysm! 
Nov 5, 2012 3:38PM
avatar
Obama announces that it may be a bit longer until New York gets temporary housing after the storm. There's been a delay in getting the FEMA Prevost Motorhomes fitted with Solar Panels...
Nov 5, 2012 3:36PM
avatar
CRAZY8, COMRAD, ABS, MIRAGEGUY, PATRIOT, JEFFR.....MISTER KYTE, SPUD, BOX AND CLASSIC LADY,
After the Election, you far right  Tea Party wacko's could apply for a job on "The Walking Brain Dead"

They are always looking for Highly Qualified EXPERIENCED Brain Dead Zombies.......Crazy8 had been on every episode until last week when Michonne cut his head off......He was the guy walking around with his arms cutoff, his jaw cut out, so he can't talk,  and a chain around his neck and pulled around by Michonne......the perfect way to deal with FAR RIGHT TEA BAG BRAIN DEAD WING NUTS...
Nov 5, 2012 3:35PM
avatar

Romney, more poverty, war and Aristocrat Rule $

Obama, more peace, prosperity and Freedom

The choice is simple

Nov 5, 2012 3:35PM
avatar
While NJ and Staten Island residents freeze, starve and s**t in the hall ways, O-DUMB-bo parties and begs for votes instead of being the President.
Nov 5, 2012 3:33PM
avatar
2008 - HOPE AND CHANGE
2012 - REVENGE
 
Perfectly said, however I wonder who or what the revenge is about.
The Democrats are marching FORWARD, wonder who cut the chains...let's ask Joe.
Nov 5, 2012 3:32PM
avatar

Barry Glynn said;

"ROMNEY/RYAN 2012 !!

 find it interesting.......al​l u republicans are either CEO...holes or better get back to work"


Here's the thing Barry. We may be at work, but we're just trying to make sure we still have the prospect of a job to go to, after tomorrow.



Nov 5, 2012 3:30PM
avatar
2008 - HOPE AND CHANGE

2012 - REVENGE
Nov 5, 2012 3:29PM
avatar

STOCK GOING DOWN.................is fear of Obama getting elected again

Nov 5, 2012 3:28PM
avatar

Urgent!

Thousands of democrates lining up at the Golden Gate Bridge!

Nov 5, 2012 3:27PM
avatar

NATE SILVER update:    Mitt Romney has a 13.7% chance of Winning........

CHANCES GOING DOWN EVERYDAY!!!!!       

fivethirtyeight.com

Mythe Robme has as much chance of Winning. as One of His Sons deciding to serve in the Military.....
Nov 5, 2012 3:25PM
avatar
CLASSIC LADY,

MAKE SURE YOU HAVE PLENTY OF VODKA,   YOU'RE GONNA NEED IT TO DROWN YOUR SORROWS  !!!!!!!!!!!
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

RECENT QUOTES

WATCHLIST

Symbol
Last
Change
Shares
Quotes delayed at least 15 min
Sponsored by:

MARKET UPDATE

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Market index data delayed by 15 minutes

[BRIEFING.COM] The stock market ended the Thursday session on an upbeat note with blue chips showing relative strength for the second consecutive day. The Dow Jones Industrial Average (+0.4%) and S&P 500 (+0.3%) settled ahead of the Russell 2000 (+0.2%) and the Nasdaq Composite (+0.1%). It is worth mentioning the benchmark index posted its fourth consecutive gain, registering a new record closing high at 1992.38.

Equity indices climbed out of the gate thanks to early strength among ... More


Currencies

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Sponsored by:

VIDEO ON MSN MONEY