After an exuberant week in which investors celebrated a new round of stimulus from the Federal Reserve, industrials drifted lower on Monday. Manufacturing underperformed the Dow Jones Industrial Average, itself down 0.3%, as news from the New York Federal Reserve Bank indicated that industrial output has remained weak.
The Empire State Manufacturing Survey, conducted quarterly by the New York Fed, gathers input from manufacturers in New York state on general business conditions, employment and sales figures, and confidence. It is the first such regional data to be reported, and Monday's gloomy results show that manufacturing remains weaker than last week's stock market rally would indicate.
The survey data led to broad declines, most dramatically at North American Palladium
The day's biggest winner in the manufacturing sector was Tesla Motors
Gun stocks on target
Two other noticeable exceptions to the day's broad declines were gun manufacturers Smith & Wesson
Smith & Wesson CEO James Debney claimed in June that presidential politics were driving company returns. Independent analysts have noted that an Obama re-election could lead to higher gun sales, as firearm enthusiasts fear that the Democrat could enact new restrictions on gun ownership. On the other hand, though President Obama has so far made no moves to limit gun rights, the realization of such fears could lead to a tougher regulator environment for firearm manufacturers.
Political issues can weigh heavily on investment decisions, but luckily for individual investors, The Motley Fool has put together a free report on how to profit no matter who wins the election. It's important to have an investing strategy in place well before the election, and this report is available for only a short time, so download your copy today.
Daniel Ferry has no position in any of the companies mentioned above. The Motley Fool owns shares of Tesla Motors. Motley Fool newsletter services have recommended buying shares of Tesla Motors. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.