8 Dec

How the Market Reacted to Trump’s Election

WRITTEN BY Sanmit Amin


Mr. Trump Goes to Washington.

Throughout the election process, the major media came to the conclusion that Hillary Clinton was more likely to become the next president. And though the range of potential Electoral College outcomes was wide, the results were definitive. As Republican Donald J. Trump, a man who’s never held public office, prepares to become the 45th President of the United States, with the House and Senate under GOP control, markets prepare for an unbridled Republican agenda.

Still, there’s much uncertainty that remains about Trump’s policy agenda. Priorities have not been detailed. And while single-party rule may seem like an opportunity for carte blanche, not all Republican leaders in Congress will be completely aligned with all aspects of The Donald’s platform. And remember, Republicans will not have the 60 votes needed to pass most legislation in the Senate, as a result at least some bipartisan support will be needed to advance any bill; so nothing is a “slam dunk”.

How the Market Reacted to Trump’s Election

Market Realist

How the market reacted to Trump’s election

November 8, 2016 marked a major political shift in the history of the United States as Donald Trump was elected as the next US president.

The graph above shows how the S&P 500 Index (SPXL) moved on November 8 and 9, 2016. Before the election, the market remained subdued due to the uncertainty of the election’s results. As the news came in, investors focused on the impact Trump’s policies could have on their investments. Trump’s election caused both the S&P 500 and the Nasdaq to spike 1.1% on November 9.

Meanwhile, European (EZU) and Chinese (FXI) stocks didn’t welcome Trump’s election. They fell 0.2% and -2.3%, respectively, due to the possibility of trade wars, which we’ll discuss in the coming articles.

While certain sectors are likely to benefit in the short term, the long-term impact of Trump’s election on the market remains largely unknown.

In the rest of the series, we’ll shed light on the sectors that are likely to outperform in the short term based on Trump’s agenda.

Latest articles

20 Jun

Will Refiners’ Earnings Plunge in 2019?

WRITTEN BY Maitali Ramkumar

Wall Street analysts expect refining firms' earnings to fall in 2019. Delek US Holdings (DK) and Valero Energy’s (VLO) earnings are estimated to fall less than 10% in 2019. However, the EPS of Marathon Petroleum (MPC), HollyFrontier (HFC), and Phillips 66 (PSX) are expected to fall 20%–40% this year.

After remaining tepid for the first four months of the year, gold prices have taken off in a big way. The initial impetus was provided by a tweet made by President Donald Trump on May 5, which revived trade tensions in a big way.

20 Jun

How Are Charter’s Revenues Trending in 2019?

WRITTEN BY Ambrish Shah

In the first quarter, Charter Communications (CHTR) reported total revenues of $11.2 billion—a rise of 5.2% year-over-year and $7 million ahead of the consensus estimate.

This morning before the market opened, Tesla (TSLA) was trading on a negative note despite a sharp rise in index futures. As of 9:10 AM ET, Tesla stock had fallen 1.2% in the pre-market session to $234.74 after Goldman Sachs cut the target price on the company by about 21%.

The US-China trade war has already given a scare to Apple’s (AAPL) investors vis-à-vis the possibility of a 25% tariff on Apple goods being imported from its Chinese facilities. As a result, Apple might be considering shifting its plants out of China.

Yesterday, Greenlane Holdings (GNLN) fell a whopping 17.1%. The stock has now fallen 28% this month, and it hit its all-time low yesterday. Greenlane Holdings listed in April and priced its IPO at $17 per share. However, since the stock surged more than 25% after its listing, it has been a sorry story for Greenlane Holdings investors.