Stocks that could benefit from a GOP-led Congress

NEW YORK — Lower taxes for medical device makers. Lighter regulations for coal. If the new Republican-led Congress manages to push through these policy changes it could lift stocks in the health and energy industries, market strategists say.

To be sure, President Obama still has two years left in the White House and can use his veto power to stop legislation. A Republican Congress can't repeal the entire Affordable Care Act. Any big tax or immigration reform ideas will have to be reached through compromise.

"Those big issues are off the table and on hold until after the presidential election in 2016," says David Lebovitz, global market strategist at JPMorgan Funds.

Still, specific industries that could benefit from successful Republican legislation include:

MEDICAL DEVICE COMPANIES:

The GOP-controlled House of Representatives has tried to repeal the Affordable Care Act's medical device tax several times only to see their efforts die in the Democratically-controlled Senate. With the Senate under Republican control starting next year, the 2.3 percent excise tax is likely to be on the chopping block, market strategists and Washington watchers say.

The nation's biggest medical device makers — Johnson & Johnson, Boston Scientific, Medtronic and others — could benefit from the elimination of the tax. Boston Scientific had $73 million in expenses related to this tax, while Johnson & Johnson paid approximately $200 million in 2013 in expenses related to the tax. Removing the tax could give a modest boost the industry's bottom line, investors say.

ENERGY:

The GOP-controlled House and Senate will likely put pressure on the White House to approve TransCanada's Keystone XL Pipeline next year. The pipeline, which would help carry crude from Canada to refineries along the U.S. Gulf Coast, has been in regulatory purgatory for several years, awaiting approval. While the State Department has the authority to greenlight the pipeline, Congress can adopt a bill that would overrule it by approving the project.

TransCanada's stock was up 2.4 percent the day after the election. Suncor Energy, a Canadian oil sands company, rose 4 percent.

Coal stocks might also do well, analysts at Brunswick Group say. Sen. Mitch McConnell, R-Kentucky, will almost certainly become the Senate Majority Leader, and a big energy supporter, Sen. James Inhofe, R-Oklahoma, is likely to become chairman of the Senate Environment and Public Works committee.

Coal companies have faced strict pollution regulations under the Obama Administration. Congress could take up legislation to pull back some of those regulations.

Obama, however, is likely to veto any legislation related to coal plants and carbon and it's unclear if the Senate has enough votes to override him.

Peabody Energy was up 12 percent, Arch Coal rose 32 percent and Alpha Natural Resources was up 49 percent for the week.

BANKS:

Smaller, regional banks may benefit under the new Congress, analysts say. There is talk of pulling back some of the Dodd-Frank regulations for banks under $10 billion in assets.

However, big banks are unlikely to see any significant regulatory changes, analysts at Keefe, Bruyette & Woods say. The Dodd-Frank financial reform act is unlikely to be repealed while Obama remains in office. Also the "too big to fail" regulations, which require the big banks to hold higher amounts of capital because of the crucial role they play in the economy, are generally popular among both Democrats and Republicans.

A regional bank, Zions Bancorporation, climbed 2.4 percent for the week.

MIDTERM BOOST:

It's not just new legislation that could help stocks; history also favors the market right now. In the past, U.S. stocks have done well in the quarter that includes midterms. Data by Strategas Research Partners shows that the Standard & Poor's 500 index, going all the way back to 1930, rose an average of 2.1 percent in the fourth quarter of a midterm election year. That compares with a return of 0.4 percent for the entire year.

Bob Doll, chief equity strategist at Nuveen Asset Management, says the gain is because elections remove uncertainty for investors and help provide clarity on which way the country might be headed.

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China trade growth decelerates

BEIJING — China's trade growth decelerated in October but still was relatively robust as Chinese leaders try to reverse a deepening economic slowdown.

Exports rose 11.6 percent to $206.9 billion, down from September's 18-month high of 15.3 percent growth, trade data showed Saturday. Imports rose 4.6 percent to $161.5 billion, below forecasts.

Weaker trade represents a new source of possible risk after economic growth slipped to a five-year low of 7.3 percent in the quarter ending in September.

In an apparent effort to shore up growth, Chinese leaders have approved tens of billions of dollars of spending in recent weeks on building new railway lines and airports.

The Communist Party leadership is trying to nurture growth based on domestic consumption and reduce reliance on trade and investment. But trade-driven manufacturing employs millions of Chinese, and the government's reform plans depend on preserving those jobs.

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Volvo V60 no ordinary wagon

A brilliant red paint job on my Volvo tester dismissed any notion that the V60 was an ordinary wagon.

This, of course, was validated by a turbocharged, 6-cylinder engine that yielded 325 horsepower. Our test model, which topped out at just under $50,000, had Volvo's R-Design trim package that gave the wagon a sporty edge with an upmarket interior.

Low-profile summer tires mounted on 19-inch wheels combined with shallow ground clearance and sport-tuned suspension gave the V60 impressive handling. While the blend made the wagon exhilarating to drive, the downside was a harsh ride, especially in the city and over bridge expansion joints on the highway.

A silky, six-speed automatic transmission produced brisk acceleration. Aluminum paddle shifters, tucked behind the steering wheel, were ready at the finger- tips to wind out those gears. All-wheel-drive certainly makes the V60 an attractive choice for the New England driver, but a second set of all-weather tires is a must. My V60 tester did 19 miles per gallon in the city and 28 on the highway in fuel economy.

An understated interior, finished in flat black, blended comfort and luxury. Brushed aluminum highlights on the leather-wrapped steering wheel, center console and doors broke up the darkness. Leather seats were supportive and fatigue-reducing.

Volvo's climate package takes heated components to another level.

In addition to heated front and rear seats, the V60 had a heated steering wheel, windshield, windshield nozzles, and mirrors.

Rear seating was decent, but lacked footroom with two adults in the front. Three children across the back was a squeeze. While our tester had an opening over the cockpit, a panoramic moonroof would help to brighten the backseat environment and provide better light for the deep, rear storage compartment.

Volvo includes an abundance of safety and security features as standard equipment on the V60's base model. Our tester also had a $900 exterior sensor technology package that included blind spot warning, cross traffic alert, lane change merge, and parking assist.

Volvo also offers a smartphone app that not only provides a remote starter, but also provides access to the V60's dashboard to check fuel levels and maintenance warnings, and provides a journal of where the wagon has been. I liked the fact that I could tap my iPhone to confirm if the doors where locked before I went to bed.

I looked forward to every opportunity to get behind the wheel of the V60 as the combination of modest power and sharp handling made the wagon entertaining to drive. An entry level V60 starts at just under $36,000 and Volvo offers 4- and 5-cylinder engine options.

I recommend taking a close look at the sport wagon segment to anyone considering a compact SUV. Other wagons to consider are the Audi Allroad, Subaru Outback, or the Volkswagen Jetta. The Volvo V60 is a sports car disguised as a wagon.

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Contemporary offers space, style

This custom-built contemporary in Georgetown is shaped like a barn — with an attached silo — and has a huge garage ideal for car collectors.

The three-bedroom home at 282 Andover St., built in 2003, sits on almost two acres of land behind the 10th hole of the Black Swan Country Club golf course.

This unique 4,660-square-foot home, with a green metal roof, light-colored vinyl siding and an attached silo that holds the kitchen, a billiards/game room and an elevator, is on the market for $850,000.

Its ground level has a 2,300-square-foot garage with four overhead access doors that has room for nine vehicles. It may not be for everyone, but if you like buying and fixing up cars, the garage gives you ample space to restore and to store them — and a bathroom with a shower stall to clean up.

Most of the living space is on the second level, which has radiant heated floors, central vacuum and handicapped accessibility fixtures and handles as well as an elevator. Almost all rooms on this level, including the great room, kitchen and master bedroom, open out onto a multi-tiered outdoor deck with great views of the golf course.

The showpiece space on the second level is a great room with oak floors, a wall of side windows and 30-foot vaulted ceilings. This space serves as an open living/dining/family room with a full-wall media center built-in at one end and a dining area with a gas fireplace at the other. There's also a wood-topped wet bar with a sink.

Behind the great room, in the five-sided silo bumpout, sits the home's expansive kitchen with custom wood cabinets, commercial grade appliances including an oversized Sub-Zero refrigerator, two dishwashers and two ovens. There are four windows, track lighting, a ceramic tile floor with patterned wood inlays, and a large dark granite-topped pendant-lit island with a six-burner gas cooktop that can seat at least a half dozen diners.

Also on this floor is the home's expansive master bedroom suite, with Pergo floors, a wrought-iron chandelier, a gas fireplace, a walk-in closet and a large three-part Palladian window. The en-suite bathroom features dual pedestal sinks, a custom built-in linen cabinet, a whirlpool tub plus a large beige marble walk-in shower.

There's a second bedroom on this level with its own ceramic tile bathroom, as well as a pocket-doored home office/study with dentil crown molding, two built-in desks and a built-in bookcase/cabinet. A laundry room holds a side-by-side washer, storage cabinets and dryer and a sink.

Off the third-floor landing above the great room sits a vaulted-ceiling loft bedroom as well as a full and a half bathroom. In the silo bumpout sits a custom billiards/gaming room (table included) with wood-paneled wainscoting and Pergo floors. The game room also has sliding doors out to a third-floor deck.

The large driveway with a circular stone planter in the center can hold an additional 20 vehicles.

Home Showcase

• Address: 292 Andover St., Georgetown
• Bedrooms: Three
• Bathrooms: Four full, two half
• List price: $850,000
• Square feet: 4,660
• Price per square foot: $182
• Annual taxes: $11,167
• Location: A mile to Georgetown Shopping Center including 
a Crosby's supermarket
• Built in: 2003
• Broker: Gail Tyrrell of ReMax Advantage Real Estate at 781-760-0670

Pros:

• Open living dining/family great room with 30-foot vaulted ceilings, wall of windows
• Large kitchen with custom cabinetry, large island and commercial grade appliances
• Master bedroom suite with three-part Palladian window, large marble walk-in shower
• Multi-tiered wide deck with views of golf course

Cons:

•  Huge garage with multiple overhead doors may not fit with potential buyer's lifestyle

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NStar wants to charge 29 percent more on Jan. 1

NStar is seeking to hike its electricity rates by 
29 percent beginning Jan. 1, citing constraints in the pipelines that bring natural gas to regional generating companies.

The utility filed the rate increase request with state regulators yesterday. If the Department of Public Utilities approves the proposal, the average customer using 500 kilowatt-hours of electricity would see a $28 monthly bill increase to $123.41, said Mike Durand, an NStar spokesman.

"This change we've filed represents the exact price we pay for the electricity we buy from generators on behalf of our customers," Durand said.

That price has increased, he said, because more than half of New England's electricity is now produced using natural gas. And although gas remains an abundant and inexpensive fuel, regional pipelines are not equipped to meet the growing dependence on gas to produce electricity, Durand said.

Mary-Leah Assad, a spokeswoman for the Executive Office of Energy and Environmental Affairs, said the Patrick administration and the Department of Public Utilities are working with all of the state's electric utilities to ensure residents and businesses are aware of the programs available to help manage energy costs this winter.

"The basic-service rate increases underscore the importance of continued aggressive investments in energy efficiency and a diverse energy mix to stabilize prices and secure our energy future," Assad said.

National Grid, Massachusetts' other major electric utility, proposed a 
37 percent rate hike earlier this fall, prompting Attorney General Martha Coakley's office to request that the company's winter electricity rates be recalculated to spread the impact over a 12-month period. But the Department of Public Utilities denied the request, saying it would be contrary to department precedent and disrupt the competitive market, potentially resulting in higher future prices.

Yesterday, Jillian Fennimore, a spokeswoman for Coakley, said: "Our office remains very concerned about these increases in electricity bills, and we will continue to advocate for ways to mitigate rate hikes this winter season and in the future. We have encouraged the DPU to educate and protect consumers considering alternatives offered by competitive suppliers, and examine additional solutions to help reduce this impact on ratepayers in Massachusetts."

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Foxwoods sees new mall as competition for visitors

MASHANTUCKET, Conn. — Foxwoods Resort Casino says the mall it's building will ratchet up the competition for gamblers and shoppers being lured by Massachusetts.

Rodney Butler, chairman of the Mashantucket Pequot Tribal Council that runs Foxwoods in eastern Connecticut, said the $120 million Tanger Outlets will set Foxwoods apart. He says casinos planned in Massachusetts will be "spectacular," but will not offer shopping.

Mashantucket and Foxwoods officials offered a tour of the mall construction site Thursday. They estimate the outlet center will draw 3 million to 4 million more people a year.

The opening is set for May 21, 2015.

Stores will include Nike, American Eagle Outfitters, Ann Taylor Factory Store, Banana Republic Factory Store and several others.

Massachusetts awarded the first resort casino licenses Thursday to Wynn Resorts in Everett and MGM Resorts International in Springfield.

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State eyes fee hikes on beaches, rinks, parks

It's going to get more expensive to hit the beach, rent ice time and camp on state property in Massachusetts under proposed fee changes that also include new charges for other activities.

The Department of Conservation and Recreation hasn't raised its fees since 2008 for day-use areas such as state parks, 2007 for ice rinks and 2003 for campgrounds, according to spokesman Bill Hickey. It's holding public hearings this month on the proposed changes, which would take effect next year.

"Even with these proposed modest increases, Massachusetts will be on the lower end of the median when compared to other New England state park fees," Hickey said.

MassParks Passes, which cover parking for a year at DCR properties including beaches, would jump from $35 to $60 for residents and from $45 to $85 for nonresidents.

Nonresidents using DCR properties also face new charges that are higher than those proposed for Bay Staters. DCR cabin rentals in state forests, for example, would rise from $30 per day for a one-room cabin for all campers to $50 for residents and $55 for nonresidents.

Daily coastal campsite fees, meanwhile, would increase from $15 to $22 for residents, and from $17 to $27 for nonresidents. Electric and water hookups would double to $6 and $4 per day.

Ice rink rentals would jump between $15 and $25 in peak season, to $200 to $250 per 50 minutes.

Among the proposed new fees are $50 per day for group picnic areas, $250 to $2,000 per day for outdoor venue rentals for company events at a DCR property, and $250 per day for commercial film productions.

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Good things come in small packages at North Point

A new AvalonBay Communities' apartment complex features micro-unit and larger studios carved out of a former hot dog factory in East Cambridge, with access to first-class amenities at its luxury rental tower across the street.

The Avalon North Point Lofts have 103 units in the six-story former Maple Leaf Franks building. AvalonBay purchased the rights to redevelop the building as part of a deal with Archstone to buy the adjacent North Point luxury apartment complex with 426 units that was built in 2008.

The lofts are a different type of apartment for Avalon­Bay, whose local portfolio includes traditional luxury apartments and its tech-­focused AVA brand geared to millennials.

"We did a complete gut rehab of the factory and added a lot more windows to make unique loft spaces," said Michael Roberts, vice president for development at AvalonBay. "The rents are also lower than our luxury or AVA apartments."

The loft rents, which range between $1,850 and $2,400, include free use of Avalon North Point's extensive amenities, including an indoor pool, gym, yoga and massage studio, hospitality room with kitchen and movie theater. Parking at the garage runs an extra $175 a month.

"People like the price point and efficient use of space, and we're getting a mix of grad students and professionals who work nearby," said property manager Sarita Gonzales, who said that 57 percent of the lofts have been rented after just a few months on the market.

Ranging in size from 329 square feet to 700 square feet, some studios have separate living and sleeping areas, while others are open-plan lofts. The apartments have ceilings over 11 feet high, and most have floor-to-ceiling windows.

The LEED Silver building emphasizes its factory origins, with polished concrete floors, large columns and exposed ductwork.

We took a look at two model units. Unit 105, a 450-square-foot micro studio with separate living and sleeping areas that's renting for $1,900, makes efficient use of space with a kitchen area with white quartz counters, about a half-dozen cabinets, a G.E. refrigerator and an electric cooktop with a microwave above. The adjacent living room is divided from a sleeping area by a three-quarter wall. There's a full bathroom with ceramic tile shower as well as an in-unit washer and dryer.

Unit 103, a 379-square-foot corner micro-unit, has a full kitchen with quartz counters, and an open plan living and sleeping area for $1,850 a month.

AvalonBay also is planning a six-story 300-unit apartment building in the NorthPoint neighborhood scheduled to break ground next year.

"We think NorthPoint has its momentum back," said Roberts. "There's still a lot of pent-up apartment demand and the long-term prospects for this area are good."

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Aereo lays off staff in Boston, New York

Aereo, which put its service on hold after it lost a Supreme Court ruling in June, is laying off a majority of its staff, including employees in New York and Boston, although the company says that it is continuing to "chart our path forward."

Several media outlets reported that the company informed employees in Boston that it was closing its office there and laying off 43 employees as of Nov. 12.

Virginia Lam, a spokeswoman for the company, said that "in an effort to reduce costs, we made the difficult decision to lay off some of our staff in Boston and New York. We are continuing to conserve resources while we chart our path forward. We are grateful to our employees for their loyalty, hard work and dedication. This was a difficult, but necessary step in order to preserve the company."

A small executive team of about a dozen people will remain.

The Supreme Court ruled in June that Aereo's service -- which offered digital broadcast streams to subscribers via dime-sized antennas -- violated the Copyright Act. The company has so far been unsuccessful in pursuing another approach in the courts, that because it resembles a cable service it should be entitled to transmit broadcast programming.

The FCC, meanwhile, is mulling a proposal in which Internet TV providers, including Aereo, would receive the same classification as a cable or satellite company, something that would give over-the-top services access to broadcast channels. But it is likely that Aereo would still have to pay restransmission fees to local stations.

© 2014 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC

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US employers add 214K jobs; rate dips to 5.8 pct.

WASHINGTON — Three days after voters registered their sourness about the U.S. economy, the government said Friday that employers added a solid 214,000 jobs in October, extending the healthiest pace of hiring in eight years.

The Labor Department also said a combined 31,000 more jobs were added in August and September than it had previously estimated. Employers have now added at least 200,000 jobs for nine straight months — the longest such stretch since 1995.

The burst of hiring lowered the unemployment rate to 5.8 percent from 5.9 percent. It is the lowest rate since July 2008. Yet workers' average hourly pay rose only slightly, a glaring weak spot in an otherwise solid report.

Voters identified the economy as their top concern in Tuesday's elections. That suggested that economic improvement hasn't yet been felt by many Americans. The sluggish pace of pay growth is a likely factor.

Average hourly pay rose 3 cents in October to $24.57. That's just 2 percent higher than the average wage was 12 months earlier and is barely ahead of the 1.7 percent inflation rate.

"While the labor market is improving and in many respects has already healed, employee bargaining power remains virtually nonexistent," Dan Greenhaus, an analyst at the brokerage firm BTIG LLC, said in a research note.

Still, the brightening jobs picture led more people to start looking for work last month. The percentage of Americans who either have a job or are looking for one rose in October to 62.8 percent. And 267,000 people who had been out of work said they were now employed. Their hiring reduced the number of unemployed to just under 9 million.

The job gains were broad-based, though many lower-paying industries posted especially large increases. Retailers added 27,100 jobs. Restaurants, hotels and entertainment firms gained 52,000.

Some higher-paying industries also showed progress. Manufacturers added 15,000 jobs, up from 9,000 the previous month. Transportation and shipping companies gained 13,300. And professional and business services, which includes accountants, engineers and other higher-skilled fields, added 37,000.

Analysts say the economic expansion remains strong enough to support the current pace of hiring. Over the past six months, the economy has grown at a 4.1 percent annual rate.

U.S. manufacturers are expanding at the fastest pace in three years, according to a survey by the Institute for Supply Management, a trade group. A measure of new orders showed that factory output will likely continue to grow in coming months. A separate survey by the ISM found that retailers, restaurants and other service companies grew at a healthy pace last month.

Home sales rose in September at their fastest rate this year, a sign that housing could pick up after a sluggish performance for most of this year.

Still, faltering global growth could create trouble for the U.S. economy in the months ahead. Exports fell in September, the government said this week, widening the trade deficit. That led many economists to shave their predictions of economic growth in the July-September quarter to an annual rate of 3 percent or less, down from the government's initial estimate of 3.5 percent.

___

Contact Chris Rugaber at http://Twitter.com/ChrisRugaber .

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