Tech Investors See Brighter Future
Thursday, November 4, 2004; 10:12 AM
"The Nasdaq composite hit a four-month high Wednesday as investors anticipated a victory speech from President Bush. The Nasdaq Composite Index closed up 19.54, or 1 percent, to 2004.33. Morgan Stanley's high-tech index gained 1.63, or 0.4 percent, to 465.75 and the Nasdaq 100 Index of nonfinancial stocks added 9.06, or 0.6 percent, to 1503.89," the Wall Street Journal Online reported last night. "Mr. Bush's victory could be good news in tech land: Senator Kerry's plan to curb outsourcing could have cut into technology firms' bottom line, while President Bush's pro-business tax policy will likely benefit them. ... Among some widely held tech companies, Microsoft rose 23 cents, or 0.8 percent, to $28.47 and Intel climbed 10 cents, or 0.4 percent, to $22.67, both on the Nasdaq Stock Market. Hewlett-Packard ended flat at $19 on the New York Stock Exchange, after climbing to a high of $19.48 earlier."
The Wall Street Journal Online: Nasdaq Passes 2000 Mark As Investors Cheer Bush Win (Subscription required)
"In tech as well as the broader market, the story was similar: Investors seemed relieved to have avoided the uncertainty that blemished the 2000 election, said Gabriel Erdi, an analyst for Skye Investment Advisors. 'I think that's a big thing that was basically removed in investors' eyes. It was somewhat of a worry with how close the polls were,'" TheStreet.com reported.
TheStreet.com: Tech Investors Go Shopping
"After enduring the worst tech spending downturn in a generation during George W. Bush's first four years in office, investors placed initial bets on Wednesday that the tech marketplace would improve during his second term. Tech stocks rose Wednesday but are still trading well below the highs they hit earlier this year amid doubts about the sustainability of the IT spending recovery," CBS MarketWatch.com reported. "This might be tech's time, in the short term and near term, because it's been neglected a little bit," Gordon Johnson, president and chief investment officer of Allegiant Investment Counselors, told the publication. The article continues: "Although tech spending has clearly slowed, overall conditions remain positive and valuations are relatively cheap, according to Johnson. Apart from Bush's victory, Johnson said the most important fact of the election was that it was decided quickly. 'The market hates uncertainty,' he said."
CBS MarketWatch.com: With Bush Back, Techs Rise on Hopes
The Boston Globe reported that Wall Street "celebrated in the tradition of generations of investors who believe Republican presidents are better for stocks than Democrats." But there could be gray skies ahead as soon as today, the paper reported. "Shares in Lockheed Martin Corp. of Bethesda, Md., the nation's largest defense contractor, rose more than 3 percent, to $55.89. Northrop Grumman Corp. shares jumped 4 percent, to $53.75, while shares of Waltham-based Raytheon Co., the world's largest missile maker, rose 2.2 percent, to $37.55," the Globe said. "Jon Kutler, a Los Angeles investment banker specializing in the defense industry, called the rise in stocks 'a classic knee-jerk reaction of Wall Street.' He predicted that even cherished Republican priorities like spending on a national missile defense system will have to be stretched out over more years, potentially hurting corporate revenue. Company earnings and economic data will quickly come back into focus now that the uncertainty of the election is over, investors said, perhaps as soon as tomorrow, when a new employment report is due out."
CNET's News.com: Votes Are Cast -- Time to Count the Issues
AFX News via TechNewsWord.com: In New Term, Bush Faces Scarred Tech Landscape
BBC News Online: Economists Gauge Bush Victory
The Boston Globe: Bush II: What's Next?