United Technologies Corporation (UTX), Microsoft Corporation (MSFT): Stocks Sink After Boehner Backs Syria Strike

It looked like stock markets were going to start off the week sharply higher today until House Speaker John Boehner said he would support President Obama’s request to use force in Syria. Then we went back to the old war-fearing sell-off. Late in the trading day, the Dow Jones Industrial Average (INDEXDJX:.DJI) is up just 0.17%, and the S&P 500 is up 0.43%.

Economic data was fairly strong today, and a rash of M&A activity over the weekend should have given the market a bit of a boost, but Syria has overshadowed that for a week now. Purchasing managers’ indexes released by Markit and the Institute for Supply Management read 53.1 and 55.7%, respectively, both indicating economic expansion in August.

Positive PMI data and the possibility that the Department of Defense will loosen its purse strings to pay for an attack in Syria have pushed United Technologies Corporation (NYSE:UTX) 2.6% higher today. Pratt & Whitney is the company’s second-largest division, and UTC Aerospace Systems also generates a significant amount of revenue from the military, so an increase in spending would definitely help operations. Most people aren’t rooting for war in Syria, but if it happens, United Technologies Corporation (NYSE:UTX) will benefit financially.

The big loser today is Microsoft Corporation (NASDAQ:MSFT) after it announced that it will buy Nokia Corporation (ADR) (NYSE:NOK)‘s handset business. Think what you will about the deal, but keep in mind that with Microsoft Corporation (NASDAQ:MSFT)’s stock down 5.1% today, its market cap is down about $19 billion. Considering the fact that Microsoft Corporation (NASDAQ:MSFT) is only paying $7.2 billion for Nokia Corporation (ADR) (NYSE:NOK), the market currently thinks this will destroy another $12 billion in value. That’s wildly overblown, even if the Microsoft Corporation (NASDAQ:MSFT)-Nokia Corporation (ADR) (NYSE:NOK) merger doesn’t result in strong growth in the handset business.

The article Stocks Sink After Boehner Backs Syria Strike originally appeared on Fool.com and is written by Travis Hoium.

Fool contributor Travis Hoium manages an account that owns shares of Apple and Microsoft. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!