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How did the stock market respond?
The major indexes rallied strongly as the presidential election came to a conclusion. The Dow gained 101 points and the Nasdaq rose by 19. Stocks rose in those sectors of the economy that investors believe will be helped by the reelection of President Bush: The pharmaceutical group gained 2%, the oil group rose by 2%, and utilities, which are now less worried about changes in dividend taxes, also rose 2%. The stock of Halliburton (HAL), the industrial service giant once run by Vice President Cheney, rose 4%. Defense stocks were also strong: General Dynamics (GD) rose 3%. Volume was heavy and advancing issues outnumbered decliners by two to one. The price of Treasuries strengthened, as did gold futures.
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