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The Electoral College re-elected President Barack Obama for another four years last week. The event concluded months of political rhetoric and spin by both parties, totaling billions of dollars and setting new campaign spending records. Due to the incumbent winning, some well-known Republicans voiced their discontent shortly thereafter. However, no matter how much pain some voters may be feeling, stocks are handing out big losses to both sides of the aisle.
Following Election Day results, Donald Trump tweeted out, “Well, back to the drawing board!” The real estate mogul was referring to politics, but investors went back to the drawing board as well. The Dow Jones Industrial Average plunged 313 points, its biggest decline of the year and one of the sharpest post-election single-day drops in history. Stocks went on to log their worst week since June, with all 10 Standard & Poor’s 500 sectors finishing lower.
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Mr. Market now has a full week of trading under its belt since the presidential election, but the financial landscape still looks shaky at best. Earnings season was weaker than expected, the fiscal cliff is stirring up worries with little progress being made so far, and the eurozone continues to languish with its insolvency. While there are certainly many factors affecting stocks across the board, several large names have taken a beating.
Listed below are the biggest losers in the Dow Jones Industrial Average since Election Day:
The only stock in the Dow to trade in the green since the closing of November 6 is Cisco Systems (NASDAQ:CSCO), a worldwide leader in networking. The company recently announced better than expected earnings and revenue figures for its fiscal first quarter that boosted the stock price.
As of Wednesday’s close, all three major indices are down more than 5.0 percent since the elections. Since early October, the Dow and S&P 500 have declined about 7.0 percent, while the Nasdaq has dropped nearly 10.0 percent.
Interestingly, President Obama holds the record for the worst post-election single-day drop in the Dow when he was first elected in 2008, with the blue-chip index plummeting 5.0 percent. However, the Dow’s performance over his entire first term is ranked among the best in history, with the help of a very accommodating Federal Reserve. On average, stocks have rallied an average of 12.1 percent per year since 1901 with Democrats in the White House, compared to 5.1 percent with Republicans, according to S&P Capital IQ.
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