Marketplace: News Archives

Tuesday, November 7, 2000
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It's Tuesday, November 07, 2000. I'm David Brancaccio.

The main thing you should know about the stock market on this election day is the volume. Less than a billion shares changed hands from the stock market today 876 million, if you log these things (in some sort of grimy, dog-eared little notebook). 876 million shares isn't much by early 21st century standards and analyst say it reflects the difficulty investors are having figuring out if it's an elephant or donkey in the White House, or running each of the houses of Congress, for that matter. More from Marketplaces Michelle Brier.

Brier: "Investors reluctant to make any sudden moves ahead of an election way too close to call can look forward to what history tells us will likely be three months of market bliss. That's because traditionally stocks gain during the transitional months after a president is elected but before he takes office, says David Blitzer, chief investment strategist at Standard and Poors."

Blitzer: "Three one has to go back to 1956 to find an election year where the market fell November, December and into January of the next year. 1976 it was essentially flat, but since 1980 its gone up, the best year being 96 when Clinton was elected and the market gained 12 percent in those three months."

Brier: "And it doesn't matter which political party moves into the White House. Since 1980, three republicans have won the presidency, two democrats and all five transitional periods saw stock prices climb."

Blitzer: "The transition is also called the honeymoon, everyone on their best behavior, no one wants to annoy the new leader who's gonna be around for at least four years at the beginning of the process. At least in the beginning, everyone is full of optimism and good feelings, hoping the best person is appointed to each job."

Brier: "But once the honeymoon is over, investors, like so many newly-weds begin to lose that optimistic glow. Looking longer term, the first year of a new president's term in office is almost always a down year for the markets. That's often because a new chief executive tries to get the least popular policies enacted first so that the memory of those actions fade way before the next election cycle. In New York, I'm Michelle Brier for Marketplace."

Not much change either among the key indicators with the Dow down 0.2 percent and the Nasdaq down a 0.1.

High energy prices have been good to oil companies such as BP Amoco. The company today reported a tidy profit over the last three months, up 94 percent. Its shares closed up one point four percent in London trading today. Oil close up more than a $0.50 at $33.40 a barrel in New York.

Goodyear has been replacing some defective light-truck tires for free, but hasn't been advertising the program, so it can't be called a formal recall. Word of the practice emerged in a Los Angeles Times piece today. The paper says 3000 vehicles have had new tires put on, but the tire company won't confirm that specific number only that what it calls "customer satisfaction replacements" are being handled case by case. Last month the Ohio-based tire maker said it's investigating some fatal accidents in which tread separated from 16 inch tires in the "E" as in "Edward" load range.

The Food and Drug Administration has decided to ban dozens of popular over the counter cold and diet remedies - including Contac, Dimetapp, Tavist D and Dexatrim - because of concerns that their active ingredient phenylpropanolamine can, in rare cases, cause strokes. The Marketplace health desk is in Boston, and reporter Helen Palmer went to some local drugstores to see if the word has trickled down.

Palmer: "This is Walgreens, one of the local drug store chains - let's check what they've got on their shelves - Dexatrim - Contac - Tavist D - are they still there? Let's see - cold relief - 'for your information the FDA has recently determined that PPA no longer safe for use in OTC medications therefore Walgreens has voluntarily discontinued the sale of these products' - good for them! So this is my local pharmacists -Skenderian apothecary, I'm looking for Robert Skenderian."

Skenderian: "I'm Robert Skenderian."

Palmer: "The FDA says they're going to ban a lot of very popular drugs - what happens from your point of view?"

Skenderian: "It causes a lot of disruption - people who come in looking for these medications - there aren't a lot of options - I have to refer them to physicians then."

Palmer: "Have you pulled this stuff off?"

Skenderian: "We haven't actually received official notification yet - from the FDA - I usually learn most of my info about what the FDA decides from the newspaper, like everybody else."

Palmer: "Mr. Skenderian, thank you very much. Now this is another of my local pharmacy chains - Osco drug - let's find the aisle that says cold remedies here cough/cold Tavist D - still there - Contac - still there. So there you have it. Outside Osco drugs, for the WGBH Health Desk - I'm Helen Palmer."

And that's the top of our news. Today the Dow fell 25 points. Details when we do the numbers.