RF Regions Financial Corporation

The Dow Jones Industrial Average jumped 375 points Wednesday, as investors bet a split Congress wouldn't impede economic growth. Nearly all 30 stocks in the blue-chip index notched advances, with the exception of some small losses among Walt Disney & Co. and Procter & Gamble Co., while the broader S&P 500 cruised toward one of its biggest daily gains in months.

Ballot measures, from allowing recreational use of marijuana in Michigan to expansion in Medicaid spending, contributed to some of the stock market's biggest gains. Still, some pockets of the market stumbled, with shares of banks and aerospace companies lagging behind, as investors and analysts worried that Republicans and Democrats' split control of Congress could hamper their paths.

WINNERS:

Energy companies that drill in Colorado

Several energy companies with operations in Colorado surged after voters rejected a measure to curb drilling in most of the U.S.'s seventh-largest oil-producing state. SRC Energy Inc. and Extraction Oil & Gas Inc. climbed more than 10%, while Anadarko Petroleum and Noble Energy surged more than 5%, making them two of the S&P 500's best performers.

"The favorable resolution removes a huge overhang that has persisted for months," Raymond James analysts said in a note to clients upgrading Noble to "outperform" from "market perform."

DaVita Inc.

Shares of the medical-care services company DaVita rose 11% Wednesday and were on track for their largest one-day climb of the year after the state of California voted against a proposal that would have limited how much clinics could ask customers to pay for dialysis treatment. Dialysis and similar lab patient services make up the bulk of DaVita's revenue.

Berkshire Hathaway's NV Energy

Berkshire Hathaway Inc.'s NV Energy is set to retain its monopoly as Nevada's utility provider after a measure to create a competitive energy market in the state failed.

Tilray Inc.

Shares of Canadian cannabis company Tilray, one of the few pot companies listed in the U.S., rose more than 8% after voters in Michigan approved a ballot measure that allows recreational marijuana use. Shares are up more than 300% since the company went public in July, although recent stumbles have sapped more than 20% from the stock since October.

American Outdoor Brands Corp.

Shares of the Smith & Wesson parent company rose 0.6% on expectations that the split control of Congress will prevent the enactment of meaningful legislation. Vista Outdoor Inc., another gun maker, was up about 0.8%, while shares of Sturm Ruger & Co. were mostly flat.

Health-care stocks

The future looks brighter for many health-care stocks following the 2018 election, as the likelihood of rolling back the Affordable Care Act diminished following the Democrats winning the House. Insurers and hospital stocks rose, with UnitedHealth Group Inc. up 4.4%, Anthem Inc. up 6.3% and Cigna Corp. rising nearly 3%. WellCare Health Plans Inc., which provides services to families and individuals primarily through Medicaid and Medicare, jumped 8%.

Medicaid expansion proposals passed in Idaho and Nebraska, while in Montana and Utah the results were too close to call early Wednesday. The election of a Democratic governor in Maine also is positive for these companies, as the governor-elect has pledged to expand Medicaid. Medicaid stocks Centene Corp. and Molina Healthcare Inc. jumped more than 9% apiece, even as the defeats of Democratic governor candidates in Florida and Georgia seemed to quash the chances of Medicaid expansions in those states.

LOSERS:

Fifth Third Bancorp

Shares of Fifth Third Bancorp fell 1.4%, sliding along with a handful of other smaller lenders, including Regions Financial Corp., Comerica Inc. and U.S. Bancorp. Rising bond prices, spurred by the likelihood of political gridlock, weighed on banks since lower yields tends to crimp lenders' profitability. Financial stocks were one of the weakest S&P 500 sectors during Wednesday's trading session.

Boeing Co.

Shares of aerospace giant Boeing and other defense cohorts gyrated in early-morning trading, suggesting investors were pricing in expectations for a budget impasse between Republicans and Democrats. Budget negotiations are likely to be fraught and could see a return of sequestration -- across-the-board budget cuts to military spending that could eat into the revenue of companies that do business with the government, said Jason Draho, head of asset-allocation Americas at UBS Global Wealth Management. Boeing shares were recently up 0.8%, while Northrop Grumman also added 0.8%, both recouping earlier losses.

--Michael Wursthorn, Amrith Ramkumar and Corrie Driebusch

(END) Dow Jones Newswires

November 07, 2018 13:36 ET (18:36 GMT)

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