The Geekdex (GDX12), the 12 stock index we at Geekstockz use to monitor the "Geek Industry", fell heavily on Wednesday morning following the re-election of Barack Obama as US President.
For the first few hours the GDX12 fell 1.58%, in line with the major indexes which have since accelerated their losses. The Dow Jones (DJI ) has lost 2.35% while the NYSE (NYX), which houses many of the GDX12 constituents, has fallen 2.97%. The GDX12 stands now at 907.6, down 1.88%.
Markets are focused heavily on the "fiscal cliff", a series of tax increases and spending cuts which will be imposed on January 1st should Congress fail to reach a compromise. While the Democrat party strengthened their hold on the Senate in yesterday's election they failed to reclaim the majority in the House of Representatives they lost two years ago, leaving President Obama with a divided Congress which has hampered efforts to enact his legislation in the past.
So far all shares on the GDX12 are in the red. The two smallest shares in the index are also its biggest fallers. Even though it posted moderate sales growth for quarter ending September 2012 shares in Mad Catz Interactive Inc. (MCZ) fell 13.17% to $0.55 while embattled games developer THQ Inc. (THQI), could be in serious trouble, falling to $1.22 a share. THQ earlier this year carried out a reverse split to keep their share price above $1, a requirement to remain listed on the NASDAQ. Should the price continue to fall, and there is nothing to indicate it won't, the company could be delisted.
At the other end of the scale PepsiCo ( PEP) is down 0.14% but is continuing to push upwards from an earlier drop of over 0.40%. Shares in Sony Corporation (SNE) are down 0.36% and Nintendo (NTDOY) is down 0.38%. The China Quality Certification Centre certified the PlayStation 3 earlier this year, a process which is required before a product can be sold in China. This could be the first step towards overturning the gaming console ban currently in place there which would open a massive market to these two companies and Microsoft (MSFT). Such a move would first have to be ruled on by the Chinese Culture Ministry.