Election Results and Earnings are Favorable Portents

The Dow Jones Utility Average finished the month of October up 1.9 percent. That was almost 9 percentage points better than the S&P 500, and despite rising interest rates.

Historically, a positive October for utilities has meant a solid finish to the year. This time, the sector will have two other potential catalysts to help it along: Strong third quarter earnings and guidance, and what appear to be mostly supportive outcomes from the recent nationwide elections.

I highlight numbers and guidance for the 200 plus essential service companies of our coverage universe in the Utility Report Card. Note we post URC as a separate PDF attached to your regular issue to ease printing burdens.

At this point, it looks like some states could be counting votes for weeks. What we do know so far is there was a “Blue Wave” in many parts of the country that washed out even the most entrenched incumbents, but which failed to carry popular candidates elsewhere across the finish line.