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Market Analysis: Tech Stocks Lead Nasdaq to Positive Territory, Despite Democratic Control of Both Chambers and Pharmaceutical Company Concerns

Strategic Insights

— 2 min read

As the markets react to the Democratic control of both the House and Senate, tech stocks are leading the Nasdaq to positive territory, with Cisco Systems (CSCO) soaring 7% after reporting better-than-expected earnings and a 25% rise in sales. Meanwhile, pharmaceutical companies are being dragged down by concerns over potential price negotiations with Medicare, leading the Amex Pharmaceutical Index (DRG) to retreat 1.05%. The Dow Jones Industrial Average (DJIA) is down 25 points, while the Nasdaq Composite (COMP) is higher by 10 points.

Key Takeaways:

  • Cisco Systems (CSCO) led the tech sector's charge higher, with shares surging 7% after reporting better-than-expected earnings and a 25% rise in sales.
  • The Nasdaq Composite (COMP) is in positive territory, with a 3.3-point gain, despite the decline of the Dow Jones Industrial Average (DJIA) by 25 points.
  • Pharmaceutical companies are being dragged down by concerns over potential price negotiations with Medicare, with the Amex Pharmaceutical Index (DRG) retreating 1.05% and Eli Lilly (LLY) and Johnson & Johnson (JNJ) shares down 1.7% and 1.3%, respectively.
  • J.C. Penney (JCP) reported a 23% increase in third-quarter net profit, with per-share earnings of $1.26, up from 94 cents in the previous year.
  • Viacom (VIA) announced that its third-quarter earnings slipped to 49 cents per share, including compensation charges and tax benefits, but revenue increased to $2.66 billion.
  • 3M Company (MMM) is selling its global-branded pharmaceutical business in three deals for a total of $2.1 billion, with roughly 70% of Worldwide employees receiving employment opportunities with the acquiring companies.

Statistics:

  • Cisco Systems (CSCO) reported a 25% rise in sales, with revenue increasing to $3.51 billion from $2.80 billion.
  • The Nasdaq Composite (COMP) is higher by 3.3 points, with a 10-point gain, despite the decline of the Dow Jones Industrial Average (DJIA) by 25 points.
  • J.C. Penney (JCP) saw a 23% increase in third-quarter net profit, with per-share earnings of $1.26, up from 94 cents in the previous year.
  • Viacom (VIA) reported revenue of $2.66 billion, up from $2.48 billion a year ago.
  • 3M Company (MMM) is selling its global-branded pharmaceutical business in three deals for a total of $2.1 billion.

Sources:

  • Schaeffer's Today's Market, November 9 edition
  • Schaeffer's Investment Research website (www.SchaeffersResearch.com)
  • Wall Street Journal article, November 8 edition
  • Commerce Department report, November 9 edition
  • University of Michigan report, November 9 edition
  • J.C. Penney press release, November 9 edition
  • Viacom press release, November 9 edition
  • 3M Company press release, November 9 edition

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