Democratic-favored industries, such as construction materials and homebuilders, are rated higher than Republican-favored industries for the moment, according to an on-going survey by LPL Financial called the Wall Street election poll that will continue until election day.
The Wall Street election poll is a market-based survey that reflects how the November election campaign is affecting market industries. Last week's poll was concluded before the Supreme Court decision on health care.
The election is seen as an increasingly important driver of the markets and one of the biggest events of the year, according to LPL Financial.
In the past weeks, the index reflects an increasing shift toward Democratic-favored industries and away from Republican-favored ones such as coal and specialty retail industries. Currently, the Democratic-favored industries stand at 109 in the LPL poll, which is in line with the highs of the year.
The methodology set up by LPL Financial sets 100 as the breakeven point. Any rise in the number indicates favorability shifting to Democratic-favored industries and any decrease reflects favorability shifting to Republican-favored industries.
Industries favored by Republicans include oil and gas drilling, telecommunications services, diversified financial services and electric utilities. Ones favored by Democrats include health care services, life sciences tools and services, and construction and farm machinery.
The survey has shown an increasing popularity for Democratic-favored industries rising from about 104 in the June 14 survey to approximately 106 for the June 22 survey.
Jeff Kleintop, chief market strategist for LPL Financial, says LPL attempted to balance the poll between the economic sensitivities that affect industries favored by the base in the two parties. The index tracks how the campaigns and election may affect the market.
"Just like the poll numbers of prospective voters tallied by the news agencies and polling organizations, our numbers reflect shifting sentiment in a close race," Kleintop says. "Jobs data, the Supreme Court ruling, gasoline prices, and many other factors that change frequently may influence the election."
--Karen DeMasters