The New York equities markets were lower during the day on Wednesday in reaction to election results that put control of the US House of Representatives in the hands of the Democratic Party for the first time in 12 years. Investors believed that some sectors of the business community would be subject to stricter regulation under the Democrats than they have been with a Republican majority in power.
The Dow Jones Industrial Average was 0.2 percent lower to 12,135.16, while the Nasdaq Composite had dropped 0.08 percent to 2,373.99 and the S&P 500 fell 0.1 percent to 1,381.1.
Defense-related stocks saw declines. Boeing dropped 0.4 percent to $84.18, while Northrop Grumman lost 1.3 percent to $65.53, Lockheed Martin was 1.4 percent lower to $86.24, and Raytheon declined 2 percent to $48.70.
The pharmaceuticals sector was lower as well. Pfizer was 1.8 percent lower to $25.56, while Merck fell 3.5 percent to $44.29. On the other hand, biotech company StemCells added over 10 percent to $3.39 on the theory that it’s research into stem cell-based therapies for central nervous system diseases would get more support from a Democratic house than it has under the Republicans.
In the retail sector, Wal-Mart dropped 1 percent to $47.17 on investor concern that a Democratic House will put more pressure on the discount retailer on the issue of working conditions for its employees. Elsewhere in the sector, Federated Department stores fell 1.2 percent to $39.87 after it reported that it lost 1 cent per share in the third quarter.