The Government Shutdown Wasn't So Bad for the Stock Market -- But Avoiding a Shutdown Would Be Even Better
The first government shutdown wasn't so bad for the stock market. In fact, the S&P 500 index bottomed two days after it started and then rose nearly 15 percent as the President and Democrats exchanged barbs over the border wall for the next month.
Investors, however, appeared relieved to avoid a second one. The tentative agreement to keep the government open sent the major indexes up sharply today with the Dow, up 1.49 percent, rising the most.
The Entrepreneur Index™ gained 1.63 percent with just 12 of 60 stocks on the index posting losses.
No news is apparently good news for homebuilder D.R. Horton Inc. While the shutdown of government agencies might arguably affect the real estate market more than many industries, it was otherwise quiet on the news front for the country's biggest builder of homes. The stock, however, was up 7.55 percent -- the biggest gain on the Entrepreneur Index™ today.
Under Armour Inc. was a close second, rising 6.88 percent after the company reported financial results this morning. The stock had one of the wilder days on the market, falling as much as three percent in pre-market trading but quickly rebounding after the company reported results. The clothing maker beat sales and earnings estimates, with strong growth overseas growth outweighing weak sales in North America. The stock is up 25.7 percent this year and 56 percent over the last twelve months.
The technology sector was generally strong with most of the thirteen tech stocks on the Entrepreneur Index™ up sharply. Three of the four FAANG stocks on the index had gains, with only Facebook, (-0.45 percent) posting a loss. Netflix, up 4.12 percent, had the biggest jump of the four. Chipmaker NVIDIA Corp. (3.22 percent), was also up smartly.
Stock prices were strong across most sectors of the market. Notable gains included specialty retailer Bed Bath & Beyond, (3.06 percent), food-maker Tyson Foods, (3.28 percent), and drug-maker Alexion Pharmaceuticals, (3.51 percent).
Fund manager BlackRock, which has suffered from market volatility lately, gained 3.1 percent. Conglomerate Loews Corp. clawed back some of the more than six percent decline it had yesterday, rising 3.05 percent.
Chipotle Mexican Grill had the biggest decline on the Entrepreneur Index™ today, falling 1.61 percent. It had the biggest gain, (3.6 percent), yesterday after it announced the hiring of an Oscar-winning director to draft an ad campaign for the restaurant chain.
Only eleven other stocks on the index declined with eight of those in the REIT sector. Equity Residential, (-1.25 percent), and Extra Space Storage, (-0.96 percent), had the biggest drops among the REITs.
The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.