The Dow Jones industrial average hit 19000 Tuesday largely on investor anticipation of looser regulations, higher growth and higher interest rates under the upcoming Trump administration.
At the same time, sources report that several top computer scientists urged Hillary Clinton's campaign to call for a vote recount in Wisconsin, Michigan and Pennsylvania where they believe there is strong evidence vote totals may have been manipulated.
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Four Companies Leading The Way
The 19,000 point close Tuesday represents a gain of 1,135.59 points since the Dow last closed below 18,000 Nov. 4. Most of the increase came from investors buying banks, industrials and health care providers.
Two of the biggest gainers were banks. Goldman Sachs Group Inc. (NYSE:GSF) has contributed 240.99 points to the Dow since Nov. 4. and JPMorgan Chase & Co. (NYSE:JPMD) is up 73.76 points since that date.
Banks Get A Boost
The two banks are representative of the reason for the rally in the financial, mostly because bank earnings are expected to rise as a result of a rebound in long-term bond yields, something that is expected to making lending more profitable.
For J.P. Morgan, the rise in bond yields and the widening gap between long and short term debt means the difference between what the bank charges for loans and what it pays out for deposits is also wider, resulting in more profit.
Goldman Sachs is likely to see a business bump based on Trump’s commitment to infrastructure projects since Goldman serves as both an adviser and lender on such projects.
Health Care Expecting ACA Action
As the largest U.S. health insurer, UnitedHealth Group Inc. has struggled with its participation in the Affordable Care Act and has said it intends to withdraw from most marketplaces. President-elect Trump’s pledge to “repeal and replace” the Affordable Care Act, could be good news for UNH.
At the same time, Medicaid expansion has resulted in 9% more customers for United and the company’s expansion of its Optum health-services unit has driven additional growth. United’s revenue grew 12% last quarter to $46.29 billion.
Counting On New Construction
Finally, Caterpillar Inc., which has weathered a stormy second half, is looking forward to increased infrastructure spending courtesy of Trump’s constant campaign promises to rebuild roads, bridges and nearly everything else in the country.
This is potential good news for a company whose revenue fell 16% in its latest quarter and projected more austerity ahead for 2017.
Potential Vote Count Volatility
Meanwhile comes news from anonymous sources that Hillary Clinton's campaign has been urged to call for a recount of vote totals in Wisconsin, Michigan and Pennsylvania. This thanks to several top computer scientists who believe they have found evidence of vote manipulation or hacking.
The scientists, including J. Alex Halderman, director of the University of Michigan Center for Computer Security and Society, informed the Clinton campaign they discovered that Clinton performed worse in counties that relied on electronic voting machines, which some believe are susceptible to manipulation or hacking, when compared to counties using paper ballots and optical scanners.
So far there has been no comment from the scientists or from the Clinton or Trump campaigns.