These Dow Stocks Won the Presidential Debate

Last night, everyone was trying to figure out which of the Presidential candidates won the debate. Regardless of your opinion on that score, however, the stock market seemed to like the outcome. Although investors remain nervous about tomorrow’s jobs number, better-than-expected data on manufactured goods and positive comments from the European Central Bank that it believes it can offset economic weakness, helped buoy the market. The Dow Jones Industrials (INDEX: ^DJI  ) closed higher by about 80 points.

Among Dow stocks, Alcoa (NYSE: AA  ) was the biggest winner, climbing more than 3%. Given how long the stock has been in the doldrums, the Wall Street Journal opined that many investors believe that the share price already reflects any negative news from its impending earnings report next week, leaving open the possibility for substantial upside if the company provides a positive earnings surprise. Analysts certainly aren’t expecting much from the stock, with average earnings estimates of a single penny per share.

Financial stocks also performed extremely well, lending credence to the theory that Governor Romney’s performance last night was well-received by the electorate. Bank of America (NYSE: BAC  ) posted a better than 3% gain, while JPMorgan Chase (NYSE: JPM  ) rose more than 2%, as signs of new life from the Republican candidate raised hopes that regulatory burdens under a prospective Romney administration would likely be far less onerous than if President Obama wins re-election.

Finally, Verizon (NYSE: VZ  ) gained more than 2%. While most of the attention in the telecom space has centered on T-Mobile’s buyout bid for MetroPCS, Verizon has already accomplished many important strategic moves, most importantly, the acquisition of substantial amounts of wireless spectrum. Those resources will be invaluable in promoting Verizon’s growth well into the future.

Be a winner
A one-day event, like a Presidential debate, may have a short-term impact on your stocks but, regardless of politics, companies still have to execute on their business strategies in order to thrive. Bank of America obviously has a big stake in the election, but it’s making progress in directions that will support the bank, regardless of who wins in November. Find out more about the bank’s latest initiatives in the Fool’s premium report on Bank of America. With insight about the company’s future, you won’t want to wait. Click here and read it right now.

Fool contributor Dan Caplinger owns warrants on JPMorgan Chase. You can follow him on Twitter @DanCaplinger. The Motley Fool owns shares of Bank of America and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2045025, ~/Articles/ArticleHandler.aspx, 8/22/2014 10:43:05 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement