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GOP win could spark party on Wall Street

Written By limadu on Minggu, 02 November 2014 | 21.29

NEW YORK (CNNMoney)

A Republican takeover of the Senate would relieve investors who have been hoping for (and betting on) more pro-business policies.

"If the Republicans blow it, that could be a problem," said Sam Stovall, chief investment strategist at S&P Capital IQ.

If the GOP pulls off the victory, these three sectors will celebrate the most:

Related: Wall Street predicts GOP mid-term victory

1. Energy: A Republican takeover of the Senate could reignite Wall Street's love affair with the energy sector, which has been battered lately by tumbling oil prices.

Consider that Halliburton (HAL) fell 14.5% in October alone, and Hess (HES) was down 10%.

In a recent poll of money managers and brokers by ConvergEx Group, 90% of respondents said energy stocks will benefit from a GOP midterm victory.

The logic is thus: Republicans will push for more lenient environmental policies that could help fossil fuel companies, or at least block tougher regulations by Democrats.

That's especially true for coal stocks that have been hurt by proposed rule changes by the Environmental Protection Agency. One proxy for coal stocks, the Market Vectors-Coal ETF (KOL), has slumped 7% over the past year while the overall market rallied.

A GOP Senate could also raise the pressure on the White House to loosen restrictions on energy exploration, especially key projects like the controversial Keystone XL pipeline.

"You have a lot more history of Republicans being friendly to the energy industry. The XL pipeline left a sour taste in people's mouths," said Nicholas Colas, chief market strategist at ConvergEx.

Related: What happens if Republicans win the Senate?

2. Financials: If the GOP takes over the Senate, and thus control of the powerful Senate banking committee, the rules should tilt more in favor of banks.

That would be a relief for a sector that has lived under the cloud of the Dodd-Frank reform law, which has handcuffed the activities of big banks and increased regulatory costs for smaller ones.

Eighty-eight percent of respondents in the ConvergEx survey said the financial sector would benefit from a Republican win.

"There is a concern that Democrats have put in excessive regulation that diminishes banks' return on capital, particularly for smaller, regional banks. The big money center banks are in a league of their own," said Colas.

Related: Halloween treat as stock market soars

3. Industrials: Republicans tend to support more defense spending by the federal government. That's music to the ears of defense companies like Lockheed Martin (LMT) and Boeing (BA) that make up a chunk of the industrial sector and rely on lucrative government contracts.

Defense stocks have already benefited from increased military spending sparked by the recent military efforts to destroy ISIS in Iraq and Syria.

"Energy and defense companies tend to be GOP pet projects," said Stovall.

Multinational industrial stocks like Caterpillar (CAT) could also benefit from more aggressive trade policies written by a Republican-controlled Congress, Colas said.

The lone wolf sector: If Democrats manage to keep the Senate, the health care industry will cheer.

A divided Congress would have a difficult time repealing ObamaCare, which has benefited certain parts of the health care industry like hospital operators, HMOs and even some drug makers.

"Maybe we can fine tune the Obama health care plan, but the Republicans have been talking about getting it repealed. Why upset the applecart? It would be a reinjection of unquantifiable uncertainty," said Stovall.

Don't forget about earnings: Of course, the midterm election isn't the only event that could move stocks this week. Investors get more corporate "report cards" from companies like CVS (CVS), Walt Disney (DIS) and Whole Foods (WFM).

Nearly 350 S&P 500 companies have already reported earnings for the third quarter, with an impressive 75% of them beating Wall Street's expectations, Capital IQ said. That's pretty solid and reinforces optimism about the health of Corporate America.

The focus will shift back to the U.S. economy when the government releases its closely-watched jobs report for October on Friday.

First Published: November 2, 2014: 9:20 AM ET

21.29 | 0 komentar | Read More

How I taught my kids to invest

The Ellerbroek family.

NEW YORK (CNNMoney)

That's the message Angie Ellerbroek is instilling in her three children. They are all under 12-years-old, but they already own stock.

"We're middle class of the middle class," Angie, who lives in the Midwest, told CNNMoney. "We live within our means. We don't buy new vehicles."

Angie and her husband were frustrated that their childrens' saving accounts were making a mere 0.17% a year in the bank. In other words, nothing.

They had worked hard to save up a bit of money for their kids -- about $1,500 for each child. In the fall of 2011, Angie had an epiphany: It was time to put the savings in the stock market.

"I explained everything to the kids before investing their savings, and they were on board," she said.

Related: Who's getting rich off the stock market?

Each child started by putting money into one stock -- something they had a connection to.

"I bought Apple (AAPL, Tech30) for my son because he loves computers. I bought Disney (DIS) for one daughter because she loves Disney movies. And for my youngest I bought Honeywell (HON)because she was sick and taking spoons of honey for her cough, and we have a Honeywell thermometer," she explained.

Angie also got into the action, purchasing shares of Toyota (TM) since she believed it was a strong brand in 2011 and the recall crisis seemed to be behind it.

Related: Is Apple the perfect stock?

Investing is now dinner table conversation -- and a fun game as the entire family follows the market. While the Ellerbroeks have a friendly competition going to see who has gained the most each week, the reality is everyone is doing very well -- certainly better than they would have if they kept their money in the bank.

The daughter invested in Disney has the most bragging rights. She is up over 140%. The son in Apple is up 85% and even got to experience a stock split earlier this year. The youngest daughter is up close to 70% -- roughly on par with the S&P 500 return since her initial investment.

Bringing up the rear is mom, although Angie isn't complaining about her 67% return either.

"Regardless of our unrealized gains, it's been a good lesson for the kids to watch their investments," Angie said.

The family has since diversified the investment portfolios somewhat, although they don't see the kids' funds as particularly risky since the plan is to keep the money in the market for a long time.

Angie knows the benefits only too well. An aunt who worked hard for UPS (UPS) and didn't have any children of her own would occasionally gift her nieces and nephews stocks. Angie received her first one when she around age 10 or 12.

"When I grew up and used it, I had about $80,000 that had accrued and split so many times. That helped us buy our first house," Angie said.

It was a better lesson about money -- and the power of investing over time -- than any she has learned in the classroom. Now her kids are learning too.

First Published: November 1, 2014: 8:08 AM ET

21.29 | 0 komentar | Read More

Branson: The dream of space tourism lives on

NEW YORK (CNNMoney)

"We are determined to know what went wrong and are working closely with authorities to get that information," Branson said Saturday at a press conference in the Mojave Desert, near the site of the accident.

From CNN: 1 dead, 1 injured in SpaceShipTwo test flight failure

Branson continued to express sorrow for the loss of life. But he also addressed a question on many people's mind: Will Virgin continue its space tourism business?

"We're going to learn what went wrong, discover how we can improve safety and performance and then move forward together," Branson said. "Four hundred engineers who work here and most people in the world would love to see the dream living on."

Commercial flights were set to start in 2015.

The Virgin Galactic spaceship that exploded Friday cost nearly $500 million to develop.

Virgin has sold more than 700 tickets to space already, each costing more than $250,000, for future flights. Several celebrities have already signed up, including Justin Bieber, Ashton Kutcher, Leonardo DiCaprio and Stephen Hawking.

Anyone who has bought a ticket and is now nervous about space flight will be able to get a full refund, Branson assured. The company has received more than $80 million from bookings.

The special plane is called SpaceShipTwo, and it was designed to carry six passengers.

Virgin Galactic has planned for years to sell trips to transport passengers about 62 miles above Earth -- the beginning of outer space -- and let them experience a few minutes of weightlessness before returning.

Friday's mission was SpaceShipTwo's solo flight number 35, according to the company. A specialized jet carried it into the air and then the crafts separated at 50,000 feet.

They disconnected normally, but within minutes, the spaceship experienced "an in-flight anomaly," Virgin Galactic said.

The plane was designed and built by Mojave-based Scaled Composites, a subsidiary of defense contractor Northrop Grumman (NOC).

The project operates under the wing of The Spaceship Company, a venture that's jointly owned by Branson and Abu Dhabi's Aabar Investments PJS.

"Space is hard and today was a rough day," Virgin Galactic CEO George Whitesides said Friday.

The deadly accident marked the second time in a week that a private U.S. space company suffered a major loss. On Tuesday, a NASA contractor -- the Orbital Sciences Corporation (ORB) -- blew up its own unmanned Antares rocket when it started to malfunction. It was bound for the International Space Station with 5,000 pounds of supplies and experiments.

The space community showed signs of solidarity after Friday's explosion.

Elon Musk, CEO of SpaceX, sent his sympathies over Twitter to the families of the pilots and the Virgin Galactic team.

NASA Administrator Charles Bolden also offered condolences.

"Space flight is incredibly difficult, and we commend the passion of all in the space community who take on risk to push the boundaries of human achievement," he said.

--CNN's Jason Hanna and CNNMoney's Octavio Blanco, Katie Lobosco and Jose Pagliery contributed to this report.

First Published: November 1, 2014: 2:38 PM ET

21.29 | 0 komentar | Read More

How I taught my kids to invest

The Ellerbroek family.

NEW YORK (CNNMoney)

That's the message Angie Ellerbroek is instilling in her three children. They are all under 12-years-old, but they already own stock.

"We're middle class of the middle class," Angie, who lives in the Midwest, told CNNMoney. "We live within our means. We don't buy new vehicles."

Angie and her husband were frustrated that their childrens' saving accounts were making a mere 0.17% a year in the bank. In other words, nothing.

They had worked hard to save up a bit of money for their kids -- about $1,500 for each child. In the fall of 2011, Angie had an epiphany: It was time to put the savings in the stock market.

"I explained everything to the kids before investing their savings, and they were on board," she said.

Related: Who's getting rich off the stock market?

Each child started by putting money into one stock -- something they had a connection to.

Angie also got into the action, purchasing shares of Toyota (TM) since she believed it was a strong brand in 2011 and the recall crisis seemed to be behind it.

Related: Is Apple the perfect stock?

Bringing up the rear is mom, although Angie isn't complaining about her 67% return either.

"Regardless of our unrealized gains, it's been a good lesson for the kids to watch their investments," Angie said.

The family has since diversified the investment portfolios somewhat, although they don't see the kids' funds as particularly risky since the plan is to keep the money in the market for a long time.

"When I grew up and used it, I had about $80,000 that had accrued and split so many times. That helped us buy our first house," Angie said.

It was a better lesson about money -- and the power of investing over time -- than any she has learned in the classroom. Now her kids are learning too.

First Published: November 1, 2014: 8:08 AM ET

19.33 | 0 komentar | Read More

NBC is developing a reality show with Virgin Galactic

NEW YORK (CNNMoney)

The network declined to comment. But according to Deadline, NBC is now "gathering information on the situation" regarding the reality series.

During a test flight, a "serious anomaly" caused Virgin's commercial space craft to explode over the Mojave Desert, killing one and seriously injuring another.

The show -- which was announced last year -- is an exclusive series between NBC, Virgin founder Richard Branson and reality TV super-producer Mark Burnett.

NBC described the show as an elimination competition in which normal people would compete with one another for "the ultimate prize" -- a flight into space on Virgin Galactic's SpaceShipTwo.

The series would also have "unprecedented access" to Virgin Galactic's Spaceport America facilities in New Mexico, where contestants would train for their winning flight, according to a press release issued last year.

Related: Virgin Galactic spaceship explodes

Virgin Galactic's plan for the $500 million spaceship is to transport passengers 62 miles above Earth where the planet meets the onset of space.

The flight reportedly would cost guests upward of $250,000 and celebrities like Leonardo DiCaprio and Stephen Hawking have signed up for tickets.

For Burnett -- the producer behind reality hits like "Survivor" -- "Space Race" is another attempt to accomplish his dream of using a TV show to send everyday people into space.

"I am thrilled to be part of a series that will give the everyday person a chance to see space," Burnett said last year. "NBC has come on board ... so that viewers at home will have a first class seat."

First Published: October 31, 2014: 6:40 PM ET