11/03/2004

Wall Street the Day After

What an interesting day on Wall Street. The day George W was decided the victor indices world wide made large gains. At the opening bell, the Dow Jones jumped 180 points. At the end of the day, the down jones industrial index closed a good 101.32 points higher then it did the previous day. Bond prices fell as investors jumped on top of stocks.

The correlation with the re-election of George W and the strong day on Wall Street is due to business friendly Bush platforms. Market strategists said Wall Street was pleased with the outcome. There was evidence of world wide confidence of Bush with the gains in global indices.

Relief set in as a clear victor was named promptly following election day. In 2000 the official results of the Presidential Election took a month leaving investors unsettled. The rally today may be a bit temporal however, as some analyst speculate that other news regarding labor, oil, and other factors will damped the optomism.

A clear positive was seen in the drug sector. The Bush’s administration is expected to reduce the threat of government-imposed price cuts on drug makers. John Kerry said he wanted Medicare to negotiate price cuts on drugs. Threatening profits to the drug sector. Today turned out to be a strong day for the economy, but will these rallies continue, or are domestic and foreign problems too great to overcome?

www.msnbc.msn.com/id/3683270/

9 comments:

John West said...

It is a good thing for the economy now that the elections are over. The people in our country will be able to go on with their lives and this should affect the stock market positively. Defense contractors and pharmeceutical companies will definately benefit from this occasion as well.

Biancca said...

I've been reading news from France, Germany and Russia and it seems like they all don't think much of Bush. Maybe I just read liberal news sources? My Russian friend followed the elections much more closely than I did. I think its interesting that Russain media follows our elections closely but we never see much about Russian leaders on our news. (Or German or French).

peter_parker said...

Yeah, the boost was very temporal in the stock market. The day after the day after, it was back down. It shows how it is important to understand macroeconomic principles in regards to investing, it is also important to understand the psychology and emotions of investors.

Anonymous said...

The market fluctuates so much and the election of George W. Bush was bound to effect it because of some of the policy that he supported. Peter Parker mentioned that the market had gone down the day after the day after. These fluctuations in the market are happening all of the time, and I think we would have seen similar changes had Kerry been elected. Most presidents strive to boost the economy so when they are put into office I think you will probably see the economy eventually rise.

Bryce Larkin said...

This is another example of how Bush is perceived by the American people. Investor wanted Bush to win; this is proven by Wall Street. Bush is for businesses and Kerry just wanted to tax them.

miles said...

Maybe the reason for the stock market jump was just because we announced a president. A change in presidents is a big deal and depending who wins can affect the stockmarket leading investors to become timid and hesitant before the election. Bush and Kerry were pushing different ideas and different issues. Perhaps it was just the fact that once the presidential winner was announced, then investors had a better idea where the stock market was headed.

Jake said...

To see to market jump the day after the election was a great sign. I wonder if companies came up with different strategies depending on the outcome of the election. I think that you would have come up with different strategies considering what each candidate had planned for the future.

Maudi said...

I agree that with Bush back in office, there are no big question marks. People grown to love and respect Bush. Although at times he may see a little extreme he's one of those people that you can trust that he is going to do the right thing. We need a strong president to stand up for what is right.

Dr. Tufte said...

Any jump related to the election is probably driven by the fact that it reduces uncertainty. I'm writing this a month after the election, and there haven't been any unusual gains or losses since then.