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 Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

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!