About The times. (Gainesville, Ga.) 1972-current | View Entire Issue (Nov. 6, 2018)
E3 BUSINESS Jeff Gill | Business reporter 770-718-3408 | jgill@gainesvilletimes.com The Times, Gainesville, Georgia Tuesday, November 6, 2018 Jittery investors await midterm outcome BY ALEX VEIGA Associated Press LOS ANGELES — The midterm elections are certain to have impli cations for Wall Street, regardless of how they shape the balance of power in Congress. That’s because in every scenario there could be winners and losers in key sectors of the market, includ ing banking, pharmaceuticals, companies that would benefit from government infrastructure projects and those that rely on healthy con sumer spending, analysts say. The scenario deemed most likely by recent polls and analyst projec tions has Democrats regaining control of the House of Represen tatives and Republicans keeping control of the Senate. The odds are longer for Republicans or Demo crats emerging with majorities in both chambers. “Divided government equals gridlock,” said Terry Haines, head of US policy and political analysis at Evercore ISI. “Gridlock is a good thing for markets because markets like certainty.” Here’s a look at how the market might react to different scenarios: Split decision In the scenario where Democrats regain control of the House, major policy initiatives from the White House will be dead on arrival. Com promise could be difficult, espe cially if the Democrats move to impeach President Donald Trump. But Democrats might find com mon ground with the GOP in some areas. Agreement on an infra structure bill could give a boost to construction equipment and trans portation companies. And legisla tion to control drug pricing would likely be a drag on pharmaceutical company stocks. A Democrat-led House could also lead to heightened oversight and investigations of big banks and Wall Street firms, which could weigh on financial sector stocks. The possibility of a government shutdown also increases with a divided Congress, according to a report from UBS on the possible impact of the midterm elections. That could unnerve investors. The S&P 500 fell nearly 20 percent dur ing the shutdown due to Congress’ 2011 debt ceiling impasse. The blue wave The odds of the Democrats tak ing both houses of Congress have diminished of late, possibly to the relief of Wall Street. In this scenario, Democrats could push to shore up the Affordable Care Act, but any move to reverse the Trump administration’s hefty tax cut on corporations or its steady rollback of government regulations on businesses could be fruitless in the face of Trump’s veto. “With this in mind, this election is really about how dysfunctional Washington will be for the second half of President Trump’s first term,” Mike Ryan, chief invest ment officer, Americas, for UBS Global Wealth Management, noted in the company’s report. More of the same Should Republicans remain in control of Congress, it’s likely the Trump administration will try to make the personal tax cuts included in last year’s reform package permanent. Also, on the possible to-do list: reforming enti tlements, easing of government regulations on banks and other businesses and perhaps tackling the issue of drug price controls, according to the UBS report. If the GOP extends its majority, there also could be a push to lower capital gains taxes and enact an infrastructure spending bill. After a solid third quarter that saw records for the S&P 500 and Dow Jones industrials, stocks have swooned on fears that rising inter est rates and the U.S. trade dispute with China could undo some of the benefits of the GOP tax cuts and eventually squeeze corporate profit margins. October snapped a six- month winning streak for the S&P 500, giving the benchmark index its worst monthly loss in seven years. Still, regardless of how the mid term elections turn out, history sug gests stocks will be fine. Companies ‘help drive the vote’ RICHARD DREW I Associated Press Parked Citi Bikes line a street in New York, July 22, 2014. Ride-share companies embrace election frenzy with rides to polls BY CATHY BUSSEWITZ Associated Press NEW YORK — Ride-share companies are capitalizing on voter enthusiasm ahead of Tuesday’s midterm elections by offering free or discounted rides to the polls in shared cars, bikes and scooters. They say they are aiming to remove what many consider a barrier to voting: lack of transportation. Midterm elections are often marked by low voter turnout, but political watch ers are expecting voter angst over which party will control the U.S. House and Senate, as well as lingering anger by both major parties over Supreme Court Justice Brett Kavana- ugh’s confirmation, to drive more Americans to cast votes. “This midterm election season has gotten in the bloodstream of the American people in a way that has not happened before,” said Steph anie Young, spokeswoman for When We All Vote, a nonprofit that has partnered with Uber and Lyft to get voters to the polls. When We All Vote is co chaired by Michelle Obama and helps people register and vote. The organization is technically nonpartisan, but several on its list of celebrity co-chairs such as Tom Hanks and Chris Paul have been vocal critics of President Don ald Trump. Lyft is also working with Voto Latino — whose co founder Rosario Dawson has urged voters to choose Demo crats to combat Trump’s immi gration policies — as well as nonprofit organizations that help blind people and student veterans to distribute discount codes and identify where free rides are needed. Lyft’s efforts have been promoted on social media by celebrities such as actor Samuel Jackson, another Trump critic. Uber is offering $10 off rides to the polls across the country and added a feature in its app that helps customers find their polling stations by typing in a home address. “In this critically important election, we want to do our part and use Uber’s technol ogy to help drive the vote,” said Uber CEO Dara Khosrow- shahi in an email. “Decisions get made by those who show up and we believe Uber can help voters show up like never before.” Zipcar, which allows mem bers to rent cars on an hourly basis, is offering a $20 credit on election night, enough to cover about two hours of driving, said spokeswoman Katelyn Chesley. Zipcar has been offering discounts for election-related rides since the company was founded in 2000, Chesley said. “There’s a lot of people who have really busy schedules during the daytime, and we just really want to make sure every last voice is heard,” Chesley said. This is the second time Lyft has offered discounted or free rides to the polls and Uber’s first. In 2016, 15 million eligible voters cited transportation as a key reason why they didn’t vote, according to The Center for Information and Research on Civic Learning and Engage ment at Tufts University, so “we want to use our platform to eliminate that pain point from the voting process,” said Mike Masserman, head of social impact at Lyft, in an email. Motivate, which operates most of the bike share pro grams in the U.S., is offering free day passes to ride bikes on Election Day in nine of its markets for the first time. BUSINESS HIGHLIGHTS Supreme Court rejects net neutrality appeal WASHINGTON — The Supreme Court has ended the court fight over repealed Obama-era “net neutrality” rules that required internet pro viders to treat all online traffic equally. The court on Monday rejected appeals from the telecommunications industry seeking to throw out a lower court ruling in favor of the “net neutrality” rules. The Federal Communications Commission under President Donald Trump has rolled back the rules, but the industry also wanted to wipe the court ruling off the books. Conservative Justices Samuel Alito, Neil Gor- such and Clarence Thomas would have granted the industry’s request. Chief Justice John Rob erts and Justice Brett Kavanaugh took no part in the case without offering a reason. Kavanaugh ruled on the issue while an appeals court judge and Roberts has an invest ment portfolio that includes telecommunications companies. Ferrari third quarter profit doubles on one-off tax break MILAN — Ferrari says its net earnings dou bled in the third quarter thanks mostly to one-off tax benefit. The sports car maker said Monday that net earnings were 287 million euros ($327 million) compared with 141 million euros a year earlier. The company said earnings grew 5 percent when excluding the so-called patent box tax break, agreed on with Italian authorities, cov ering use of copyrights, patents, trademarks, design and know-how. Deliveries were up 11 percent to 2,262 vehicles driven by sales of the 812 Superfast and Ferrari Portofino, with revenues flat at 838 million euros. Europe and Middle East sales were up by double digits to 1,005. The Americas grew by 5 percent and greater China by 7 percent. Ferrari forecast full-year sales at over 9,000 with profits of 1.1 billion euros. Tennessee Valley Authority to build Facebook solar projects NASHVILLE— Tennessee and Alabama will get their largest solar power projects yet, to sup ply a Facebook data center with 100 percent renewable energy. Officials with the Tennessee Valley Authority announced an agreement with two developers to build the electricity providers. John Bradley, TVA’s senior vice president of Economic Development, said Friday that First Solar in Colbert County, Alabama and NextEra Energy Resources in Lincoln County, Tennessee, will produce 377 megawatts together to supply Facebook’s data center in Huntsville, Alabama. Associated Press Stock Exchange Highlights NYSE 12,424.32 +102.52 V Nasdaq 7,328.85 -28.14 Gainers (S2 Name Last OR MORE) Chg %Chg JinkoSolar Pyxuslnt RyersonH QuintEn n SwstnEngy Cameco g ChesEng CNA Fn EQT Corp AnteroRes 10.49 26.42 9.59 7.00 5.89 12.10 3.79 47.48 35.35 17.11 +1.52 +16.9 +3.43 +14.9 +1.00 +11.6 +.60 +9.4 +.49 +.96 +.30 +3.72 +2.72 +1.30 +9.1 +8.6 +8.6 +8.5 +8.3 +8.2 Losers (S2 or more) Name Last Chg %Chg Welbilt 14.26 -5.06 -26.2 EmergeES 2.34 -.80 -25.5 PrUltShN s 25.74 -4.75 -15.6 DBAgriLg 9.50 -1.55 -14.0 Teladoc n 63.34 -9.17 -12.6 DrxNGBear rs24.22 -2.89 -10.7 LSC Com 9.82 -1.10 -10.1 QuadGrph 16.07 -1.76 -9.9 Hi-Crush 6.20 -.65 -9.5 Sysco 64.56 -6.73 -9.4 Most Active ($1 or more) Name Vol (00) Last Chg GenElec 1241787 9.28 -.01 Keysight 476534 58.34 +1.16 ChesEng 440791 3.79 +.30 FordM 412609 9.53 +.15 BkofAm 410930 28.06 +.17 EnCana g 406555 8.88 +.33 Ambev 281906 4.38 -.08 SwstnEngy 273472 5.89 +.49 AT&T Inc 265409 30.63 + .11 Gerdau 233616 4.50 -.17 Diary Advanced Declined Unchanged Total issues New Highs New Lows Volume 1,811 1,004 77 2,892 27 48 3,569,867,343 Gainers ($2 Name Last OR more) Chg %Chg TherpxBio n 9.20 Datawatch 13.09 CmstkH rs 2.67 RealmTh n 3.14 Neovas grs 2.28 RestorRob n 2.29 DXP Ent 39.87 HancJaf n 2.29 SigmaL hn 2.00 PumaBiotc 22.86 +2.50 +37.3 +3.40 +35.1 +.52 +24.2 +.60 +23.4 +.33 +16.9 +.33 +16.8 +5.09 +14.6 +.29 +14.5 +.25 +14.3 +2.79 +13.9 Losers ($2 or more) Name Last Chg %Chg ClearsBio n 2.07 AvadelPh 3.06 AltairAn 30.70 CohBar n 3.57 FulgentG n 3.20 PyxisTnkr 2.61 Hlthlnslnn 39.62 NF EngSv 6.26 CarverBc If 4.42 MarkerTh 8.01 -3.49 -62.8 -.96 -23.9 -7.20 -19.0 -.71 -16.6 -.60 -15.8 -.45 -14.7 -6.65 -14.4 -1.00 -13.8 -.67 -13.2 -1.20 -13.0 Most Active ($1 or more) Name Vol (00) Last Chg AMD 1077744 19.90 -.33 Apple Inc 660671 201.59 -5.89 CaesarsEnt288339 9.50 -.03 Microsoft 279081 107.51 +1.35 SiriusXM 238652 6.11 Intel 237422 47.97 +.86 Starbucks S232408 64.48 +.16 MicronT 225866 39.92 -.40 Comcast s 187230 38.02 +.36 Cisco 173639 46.14 +.66 Diary Advanced Declined Unchanged Total issues New Highs New Lows Volume 1,372 1,565 138 3,075 37 59 2,090,693,550 Stocks of Local Interest Name Ex YTD Div Yld PE Last Chg %Chg AFLAC S 1.04 2.4 14 43.71 +.81 0.0 IBM 6.28 5.2 9 120.06 +4.39 -21.7 AT&T Inc 2.00 6.5 6 30.63 +.11 -21.2 Inuvo 1.34 +.93 +65.4 AbbottLab 1.12 1.6 30 70.39 +.20 +23.3 JohnJn 3.60 2.5 20 142.20 +1.52 +1.8 AMD 19.90 -.33 +93.6 Keysight 46 58.34 +1.16 +40.2 Altria 3.20 5.0 20 64.63 +.96 -9.5 Lowes 1.92 2.0 20 97.07 +.25 +4.4 Apple Inc 2.92 1.4 24 201.59 -5.89 +19.1 McDnlds 4.64 2.6 27 180.39 +3.64 +4.8 ATMOS 1.94 2.1 17 93.29 +1.15 +8.6 Merck 2.20 3.0 27 73.12 +.85 +29.9 AutoZone 16 766.35 +5.86 +7.7 MicronT 3 39.92 -.40 -2.9 AveryD 2.26 2.5 26 91.94 -.48 -20.0 Microsoft 1.84 1.7 51 107.51 +1.35 +25.7 BB&T Cp 1.62 3.3 14 49.73 +.56 0.0 NewellRub .92 4.6 19.97 +.98 -35.4 BP PLC 2.38 5.6 23 42.61 +1.01 +1.4 NorflkSo 3.20 1.9 25 167.20 -1.39 +15.4 BkofAm .60 2.1 13 28.06 +.17 -4.9 OfficeDpt .10 3.7 8 2.68 -24.3 BamesNob .60 9.0 6.65 -.05 -.7 Penney 26 1.57 +.01 -50.3 Boeing 6.84 1.9 34 361.98 +4.23 +22.7 PepsiCo 3.71 3.2 33 114.39 +3.22 -4.6 BrMySq 1.60 3.1 52 52.03 +1.34 -15.1 Pfizer 1.36 3.1 17 43.52 +.59 +20.2 CSX .88 1.3 10 69.09 -.09 +25.6 PhilipMor 4.56 5.1 22 89.55 +.80 -15.2 CaesarsEnt ... 9.50 -.03 -24.9 Primerica 1.00 .9 14 114.05 +.58 +12.3 CampSp 1.40 3.7 13 37.73 +.85 -21.6 ProctGam 2.87 3.1 23 91.20 +1.39 -.7 Caterpillar 3.44 2.7 12 126.41 +.62 -19.8 RegionsFn .56 3.2 15 17.32 +.06 +.2 ChesEng 6 3.79 +.30 -4.3 SiriusXM .05 .8 34 6.11 +14.0 Chevron 4.48 3.8 53 118.94 +4.21 -5.0 SouthnCo 2.40 5.3 21 45.25 +.51 -5.9 Cisco 1.32 2.9 23 46.14 +.66 +20.5 SwstnEngy 7 5.89 +.49 +5.6 Citigroup 1.80 2.7 11 67.30 +1.38 -9.6 Square n 75.01 -2.75+116.4 CocaCola 1.56 3.2 92 48.69 +.69 +6.1 Starbucks s1.44 2.2 29 64.48 +.16 +12.3 Comcast s .76 2.0 18 38.02 +.36 -4.7 SunTrst 2.00 3.2 11 62.52 +.03 -3.2 ConAgra .85 2.4 17 35.00 -7.1 SynovusFn 1.00 2.6 14 38.10 +.15 -20.5 Cummins 4.56 3.2 40 143.83 +2.00 -18.6 3M Co 5.44 2.8 27 193.25 +.44 -17.9 Disney 1.68 1.5 15 115.45 +.27 +7.4 TitanPh rs .45 +.07 -66.0 DowDuPnt 1.52 2.6 18 57.63 -.10 -19.1 Torchmark .64 .7 7 85.87 +1.14 -5.3 EnCana g .06 .7 15 8.88 +.33 -33.4 Twitter 34.02 -.28 +41.7 Equifax 1.56 1.5 18 103.92 +.06 -11.9 Tyson 1.20 1.9 11 62.04 +.48 -23.5 ExxonMbl 3.28 4.0 17 81.64 -.31 -2.4 UtdCmBks .60 2.4 15 25.33 +.05 -10.0 FordM .60 6.3 5 9.53 +.15 -23.7 UPS B 3.64 3.4 18 106.82 +.83 -10.3 GenElec .48 5.2 9.28 -.01 -46.9 VerizonCm 2.41 4.2 7 57.21 +.58 +8.1 GenuPrt 2.88 2.9 21 98.08 +1.06 +3.2 VitalThera .40 +.07 -93.3 HP Inc .56 2.3 9 24.64 +.01 +17.3 Vodafone 1.82 9.2 19.71 +.26 -38.2 Haverty .72 3.4 22 20.87 -.30 -7.9 WalMart 2.08 2.0 24 102.91 +1.57 +4.2 HeliosM rs .02 100.0 Weathflntl 1.27 +.03 -69.5 Hershey 2.89 2.7 23 106.97 +1.13 -5.8 WeisMk 1.24 2.8 21 44.60 -1.10 +7.8 HomeDp 4.12 2.3 24 182.19 +2.26 -3.9 WellsFargo 1.72 3.2 13 53.66 +.05 -11.6 Intel 1.20 2.5 18 47.97 +.86 +3.9 YumBrnds 1.44 1.6 31 87.47 +.57 +7.2 Name Ex YTD Div Yld PE Last Chg %Chg Stock Footnotes: g = Dividends and earnings in Canadian dollars, h = Does not meet continued-listing standards. If = Late filing with SEC. n = New in past 52 weeks, pf = Preferred, rs = Stock has undergone a reverse stock split of at least 50 percent within the past year, rt = Right to buy security at a specified price, s = Stock has split by at least 20 percent within the last year, un = Units, vj = In bankruptcy or receivership, wd = When distributed, wi = When issued, wt = Warrants. Fund Footnotes: m - Multiple fees are charged, usually a marketing fee and either a sales or redemption fee. Source: The Associated Press. Sales figures are unofficial. Stock Market Indexes Dow Jones industrials Close: 25,461.70 Change: 190.87 (0.8%) 27,200 26,400 25,600 24,800 25,600 24,860 24,120 10 DAYS M J J A s O 52-Week Net YTD 12-mo High Low Name Last Chg %Chg %Chg %Chg 26,951.81 23,242.75 Dow Industrials 25,461.70 +190.87 +.76 +3.00 +8.12 11,623.58 9,420.16 Dow Transportation 10,361.81 -4.51 -.04 -2.36 +6.47 778.80 647.81 Dow Utilities 734.80 +9.95 +1.37 +1.58 -1.93 13,637.02 11,820.33 NYSE Composite 12,424.32 +102.52 +.83 -3.00 +.19 8,133.30 6,630.67 Nasdaq Composite 7,328.85 -28.14 -.38 +6.16 +7.99 1,309.73 1,118.69 S&P 100 1,217.50 +8.66 +.72 +2.90 +6.45 2,940.91 2,532.69 S&P 500 2,738.31 +15.25 +.56 +2.42 +5.68 2,053.00 1,769.25 S&P MidCap 1,870.39 +7.99 +.43 -1.59 +1.47 30,560.54 26,293.62 Wilshire 5000 28,302.14 +125.13 +.44 +1.83 +5.21 1,742.09 1,436.43 Russell 2000 1,547.51 -.47 -.03 +.78 +3.31 Mutual Funds Name Total Assets Obj ($Mlns) NAV Total Return/Rank 4-wk 12-mo 5-year Pet Load Min Init Invt Vanguard 500ldxAdmrl LB 247,729 253.17 -5.0 +7.8/A +11.4/A NL 10,000 Vanguard TtlSMIdxAdmrl LB 199,057 68.24 -5.1 +7.4/B +11.0/A NL 10,000 Vanguard TtlSMIdxinv LB 127,316 68.22 -5.0 +7.3/B +10.8/B NL 3,000 Vanguard TtlnSIdxinv FB 126,316 16.23 -3.8 -7.2/C +2.5/B NL 0 Vanguard TtlSMIdxIns LB 119,661 68.26 -5.0 +7.4/B +11.0/A NL 5 000,000 Vanguard Insldxlns LB 116,372 249.78 -5.0 +7.8/A +11.4/A NL 5 000,000 Vanguard InsidxInsPlus LB 101,648 249.79 -5.0 +7.8/A +11.5/A NL100,000,000 Vanguard TtlnSIdxinsPlus FB 94,240 108.56 -3.8 -7.2/C +2.6/B NL100,000,000 Fidelity Contrafund LG 91,385 12.77 -7.2 +7.4/D +12.2/B NL 0 Vanguard TtBMIdxAdmrl Cl 85,528 10.23 -0.1 -2.5/C +1.8/C NL 10,000 Fidelity 500ldxlnsPrm LB 84,712 95.80 -5.0 +7.8/A +11.5/A NL 0 Vanguard WlngtnAdmrl MA 84,654 71.38 -2.9 +3.0/A +7.8/A NL 50,000 Cl -Intermediate-Term Bond, FB -Foreign Large Blend, IH -World Allocation, LB -Large Blend, LG -Large Growth, LV -Large Value, MA -Moderate Allocation, WS -World Stock, Total Return: Chng in NAV with dividends reinvested. Rank: How fund performed vs. others with same objective: A is in top 20%, E in bottom 20%. Min Init Invt: Minimum $ needed to invest in fund. Source: Morningstar.
