The Dow Now: Travelers Hit After Sandy Classified as Tropical Storm, Not Hurricane

By Sterling Wong  NOV 02, 2012 12:10 PM

Disney and GE were up on the day


MINYANVILLE ORIGINAL Despite an expectations-beating payroll report, US stock indexes edged up in mid-Friday trading after early gains, as investors began to consider how the presidential election next Tuesday would turn out.
Nonfarm payrolls rose by 171,000 in October, when the consensus was an increase of 120,000.  The unemployment rate, however, did edge up to 7.9% from 7.8% as expected, owing largely to more people returning to the workforce.
The Dow Jones Industrial Average (INDEXDJX:.DJI) is down 0.26% to 13,197.56 points as of 11:58 a.m. EDT.
The force was with Disney (NYSE:DIS) in intraday trading, with the entertainment giant making one of the largest gains amongst Dow components, rising. 1.12% to $50.34. Disney also rose 1.34% on Thursday. Clearly, investors have reversed their initial negative position on Disney’s acquisition of Lucasfilm.
General Electric (NYSE:GE) also received a 0.42% bounce to $21.43. For its fiscal third quarter, GE’s net income jumped to $3.49 billion, or $0.33 per share, from $3.22 billion and $0.22 per share the same period a year ago. Minyanville’s Randall Radic asserts that the company’s source of growth for the future will come from an expected boom for LED lighting.

Chevron (NYSE:CVX) led all Dow decliners, sliding 1.88% to $109.37. The oil and gas company reported a 33% drop in third-quarter net income, while quarterly revenue also fell $5.6 billion from a year ago due to falling oil and gas prices and a decline in production.
Travelers (NYSE:TRV) also retreated for a third successive day, down 0.42% to $69.93, with investors worried that the insurer will be hit by an ever-increasing bill from Hurricane Sandy damages. Since the governors of New York, New Jersey, and Connecticut have said that Sandy would be classified as a tropical storm and not a hurricane, Travelers and other insurers would likely have to pay out more since certain deductibles were applicable only for hurricanes.

Twitter: @sterlingwong
No positions in stocks mentioned.

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