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Markets Flip to Positive after Unexpected Election Results

Originally published: 11.18.16 by Margot Crabtree


Wall Street began our session in a positive mood as corporate earnings provided an unexpected bright spot, but soon slumped into volatility as investors waited out the election slog. The election changed everything as our trading session ended Nov. 15, 2016.

The Federal Reserve reported that factory production increased 0.2 percent in September. The Institute for Supply Management’s index of factory activity improved 0.4 percent in October, to a reading of 51.9.

The Commerce Department reported that the U.S. gross domestic product rose by 2.9 percent in the third quarter, the strongest pace in two years. The Conference Board reported an October consumer confidence reading of 98.6, following September’s 103.5.

The Commerce Department reported that new single-family housing sales rose 3.1 percent in September; economists polled by Thomson Reuters expected a decline. The Commerce Department reported that construction spending was down in September, off 0.4 percent; economists surveyed by Reuters expected an increase of 0.5 percent.

To begin November, markets fell with the longest string of declines in 36 years; the VIX, the so-called “fear index,” was up sharply. After the unexpected election results, Wall Street rallied instead of falling, pushing the Dow industrials to all-time highs and the S&P 500 to its


largest weekly gain in two years.

“Last week’s rally was basically a digestion of Trump’s win and now that we’re past the digestion phase, the market is taking a bit of a breather and is waiting to see what lies ahead under a Republican government,” said Mark Watkins, regional investment manager at the Private Client Group at U.S. Bank in Park City, Utah.

Exchange
Symbol
Company Name
Price
11/15/16
Price
10/14/16
Net
Change
PercentChange
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 32.30 29.35 2.95 10.05% 33.50 19.06 52760 1704148
NYSE ABB ABB Ltd. 21.22 22.34 -1.12 -5.01% 22.92 15.74 2140000 45410800
NYSE AOS AO Smith Corp. 47.53 48.93 -1.40 -2.86% 51.49 30.15 147700 7020181
NYSE FIX Comfort Systems USA, Inc. 32.00 27.70 4.30 15.52% 34.00 24.22 36910 1181120
NYSE DOV Dover Corp. 71.56 67.78 3.78 5.58% 74.90 50.91 155350 11116846
NASD ELON Echelon Corp. 4.30 5.06 -0.76 -15.02% 7.20 4.17 4430 19049
NYSE DD E. I. DuPont de Nemours & Co. 68.64 69.03 -0.39 -0.56% 75.72 50.71 869340 59671497.6
NYSE EME EMCOR Group, Inc. 70.24 57.28 12.96 22.63% 70.48 40.98 60650 4260056
NYSE EMR Emerson Electric Co. 55.78 49.88 5.90 11.83% 56.82 41.25 643540 35896661.2
NYSE FCAU Fiat Chrysler 7.52 6.30 1.22 19.37% 9.51 5.45 1290000 9700800
NYSE F Ford Motor Co. 12.04 11.91 0.13 1.09% 14.76 11.02 3980000 47919200
NYSE GM General Motors Co. 33.43 31.87 1.56 4.89% 36.88 26.69 1530000 51147900
NYSE HON Honeywell International, Inc. 113.12 109.00 4.12 3.78% 120.02 93.71 762120 86211014.4
NASD HDSN Hudson Technologies, Inc. 7.66 6.08 1.58 25.99% 7.78 2.64 34040 260746.4
NYSE IR Ingersoll-Rand Plc 75.92 65.79 10.13 15.40% 76.45 47.08 258330 19612413.6
NYSE JCI Johnson Controls, Inc. 44.50 43.88 0.62 1.41% 48.97 28.94 635800 28293100
NYSE LII Lennox International Inc. 151.14 157.62 -6.48 -4.11% 164.02 105.65 43050 6506577
NYSE LXU LSB Industries, Inc. 8.28 5.50 2.78 50.55% 15.50 3.68 27910 231094.8
NYSE MTW Manitowoc Co., Inc. 5.00 4.45 0.55 12.36% 17.56 3.65 138770 693850
NYSE MLI Mueller Industries, Inc. 35.97 31.17 4.80 15.40% 36.83 23.09 57380 2063958.6
NYSE NWL Newell Rubbermaid, Inc. 47.05 52.25 -5.20 -9.95% 55.45 33.26 482400 22696920
OTC NSANY Nissan Motor Co. Ltd. 18.55 19.14 -0.59 -3.08% 21.92 16.57 2100000 38955000
NASD OFLX OmegaFlex, Inc. 41.33 38.11 3.22 8.45% 42.40 27.51 10090 417019.7
NYSE PH Parker-Hannifin Corp. 140.02 124.54 15.48 12.43% 140.07 83.32 133400 18678668
NYSE RBC Regal-Beloit Corp. 69.45 59.55 9.90 16.62% 69.83 47.77 44760 3108582
NYSE ROK Rockwell Automation 133.48 116.80 16.68 14.28% 133.54 87.53 129400 17272312
OTC SIEGY Siemens Aktiengesellschaft  116.73 115.63 1.10 0.95% 122.84 86.58 808890 94421729.7
NYSE SPXC SPX Corp.  22.48 19.79 2.69 13.59% 22.64 7.62 41890 941687.2
NYSE TXN Texas Instruments 71.03 68.49 2.54 3.71% 72.58 46.73 999490 70993774.7
NYSE UTX United Technologies Corp. 107.68 100.16 7.52 7.51% 109.83 83.39 823410 88664788.8
NYSE WSO Watsco, Inc. 144.89 142.89 2.00 1.40% 149.99 106.58 27530 3988821.7

 

Positive earnings boosted the HVACR Business Stock Index, which rose 34.46 points, or 2.81 percent, and closed at 1258.71. Advancing issues bypassed declining issues by a 24-to-7 count.

Rockwell Automation beat expectations for its fiscal fourth quarter, and shares jumped 16.68 points, or 14.28 percent and closed at 133.48. ROK earned net income of $185.2 million, or $1.43 per share.

Adjusted for one-time items, ROK earned $1.52 per share. Revenue was $1.54 billion. Analysts polled by Zacks expected earnings of $1.49 per share and revenue of $1.51 billion. Rockwell was our top dollar gainer.

Lennox also topped earnings and revenue estimates for the quarter, but other pressures, including a downgrade from UBS, sent LII down 6.48 points, or 4.11 percent. For the third quarter, LII posted net income of $101.7 million, or $2.33 per share, and revenue of $1.01 billion.

Analysts surveyed by Zacks expected earnings of $2.25 per share and revenue of $999.4 million. UBS cut its rating on Lennox to “neutral” from “buy.” LII ended at 151.14, and was the top dollar loser.

LSB Industries swung to a profit and increased 2.78 points, or 50.55 percent. For the third quarter, LXU posted net income of $133.6 million, or $4.14 per share. With adjustments for one-time items, LXU lost $2.12 per share. Revenue was $80.3 million.

The company reported that it is exploring strategic initiatives, including a sale of the company, or merger, or divestment of some assets. LXU ended at 8.28, and was the top percentage gainer.

 


Margot Crabtree is president of Trade Trends, Inc., a financial data services provider. She has been offering market analysis with customized stock indices and financial commentaries since 1999. For additional information, visit  www.tradetrendsonline.com

 




About Margot Crabtree

Margot is president of Trade Trends, Inc., a financial data services provider. She has been offering market analysis with customized stock indices and financial commentaries since 1999. For additional information, visit tradetrendsonline.com.

 

 




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