Stocks are likely to enter a bullish mode following former President Trump’s successful re-election. But not every industry is ready for a boost. The major stock indexes rose to new highs on Wednesday as NBC News predicted a defeat for rival Vice President Kamala Harris. The Dow Jones Industrial Average surged more than 1,300 points, or about 3.1%, while the tech-heavy Nasdaq and S&P 500 gained more than 2% as investors pondered what the new administration might mean for markets. What. Many on Wall Street are beginning to view a Trump-led administration as a potential boon to a range of industries, including cryptocurrency, finance and automakers. Many companies related to these industries saw gains Wednesday. But the outlook for some other key industries and market themes is less optimistic. Clean Energy One potential big loser is solar and clean energy stocks, which benefit from tax credits under President Joe Biden’s inflation-cutting bill. Trump has hinted at repealing the law, which could impact the country’s growing clean energy boom. These include companies such as SolarEdge Technologies, Enphase Energy and First Solar. SEDG’s year-to-date mountain share price saw all three stocks down double digits in Wednesday trading. Lee emphasized that they are the group most vulnerable to IRA incentives. SolarEdge shares have fallen nearly 84% since the start of 2024. Analysts believe discount and specialty retailers that rely on Chinese products are the biggest losers from the plan. Bank of America analyst Melanie Nuñez downgraded Five Below’s stock to underperform, citing the company’s “significant sourcing exposure” to China, which accounts for about 50% of its products. 60%. The company “does not see a clear path to a turnaround in corporate performance and expects margin deleveraging to continue due to lower sales and higher tariff costs,” she wrote. Same-store sales (Comps) are a key metric for measuring retail sales growth. Five Below fell nearly 8% during Wednesday’s trading session, while Dollar Tree and Dollar General fell about 8% and 4%, respectively. Yeti is another retail stock downgraded by Bank of America because the company sources 80% of its beverages in the world’s second-largest economy. The stock price fell 8%. The company also emphasized that companies such as Crocs and American Eagle Outfitters, which account for more than 20% of their business in China, are potential losers from tariffs. Alcohol stocks Americans may also want to prepare for higher prices on their favorite liquor brands and spirits manufacturers. TD Cowen’s Robert Moskow believes Constellation Brands could be a loser if tariffs are imposed on Mexican imports, while Brown-Forman could be hit by the EU’s reinstatement of tariffs related to U.S. whiskey. He noted that the region accounts for about a quarter of sales in the category. STZ 1D mountain Constellation Brands falls on Trump tariff concerns “With the 50% tariff on U.S. whiskey, we expect BFB to pass on some costs to consumers, which will put additional pressure on volumes,” he wrote. Diageo may also face a host of headwinds including taxes on U.S. imports of Mexican tequila and Scotch whiskey and whiskey exports to the EU. Consumer staples companies such as Mondelēz and Coca-Cola may also be affected because their operations in Mexico are not large enough. big. Both stocks fell about 3% on Wednesday. Joanna Gajuk of Hospitals and Health Care Stocks Bank of America said a shift in stance on health care coverage could also give hospital stocks a boost, given “less overall support” for health care coverage among Republicans. Get some pressure. The analyst downgraded Ardent Health Partners and Universal Health Services to neutral from buy and revised their respective price targets. With shares down about 9% and 4%, respectively, during Wednesday’s session, “a Republican president and Senate control…increases the risk of enhanced subsidies expiring and a reduction in Medicaid supplemental payments to hospitals,” Gajuk explained. “While Congressional action on subsidies is required, a Republican president increases the likelihood of negative outcomes.” Trump’s presidency has also created “uncertainty” about the Affordable Care Act. Barclays analyst Andrew Mok said this could be a bad sign for beneficiaries such as HCA Holdings and Centene, with a higher likelihood of subsidies expiring. “If the subsidy expires, we expect to lose 3.2 million members, which is a 15% decrease from the current 21.4 million members,” he said.
