Now that Barack Obama has clinched the election, it’s time to start talking about what an Obama administration will mean for the economy. Specifically, what will a Democratic administration (the party expanded its majority in Congress as well) mean for various stock sectors and individual companies?
Reuters: Many in the energy sector see an increase in government support coming as a way to help jump start the economy and stimulate job growth.
Shares of solar energy companies, beaten down by credit worries and the drop in crude oil prices, have surged in anticipation of a policy focus. Suntech Power Holdings Co Ltd (STP.N), JA Solar Holdings Co Ltd (JASO.O) , First Solar Inc (FSLR.O) and SunPower Corp (SPWRA.O) are all up by more than 50 per cent in the past week.
Shares of Denmark’s Vestas (VWS.CO) , the world’s No. 1 wind turbine maker, are up by nearly two-thirds in that time…
Analysts at Louis Capital Research noted a U.S. drive for more hybrid cars would benefit Energy Conversion Devices Inc (ENER.O) , which patented the nickel metal hydride storage technology used in hybrid electric vehicles.
Democrat Barack Obama’s green energy push may also have a big impact on the long-neglected problem of getting power from the source to users.
Potential beneficiaries include Swiss company Landis+Gyr, which received $1.1 billion in new financing in June and had been looking at floating shares. Redwood City, California-based Silver Spring Networks, which just got $75 million in venture capital funding, and Pittsburgh-based BPL Global, are also seen beneficiaries.
U.S. defence contractors thrive as well during Democratic administrations, if not better, than in Republican ones, and the likely election of Obama as president offers no hint of being an exception.
Likely beneficiaries include companies with long-term contracts building fighters, bombers, warships and missiles — the bread and butter for Lockheed Martin Corp (LMT.N) , Northrop Grumman Corp (NOC.N) and other big contractors.
Likely losers in the event of an Obama win are companies with lucrative contracts supplying U.S. forces in Iraq, such as bullet-maker Alliant Techsystems Inc (ATK.N) , armour plate maker Ceradyne Inc (CRDN.O) , or large contractors making fighting vehicles such as General Dynamics Corp (GD.N) and BAE Systems Plc (BAES.L) .
Boeing (BA.N) looks like a winner, given Democrats’ staunch support for the company in its effort to win a controversial $35 billion refueling tanker contract, which will be put up for grabs again next year…
It may be tempting for investors in pharmaceutical and biotech stocks to rush for the exits if a Democratic administration takes over the White House, but drugmakers are about to prove once again why they are a safe haven.
Major decisions on how to cope with the credit crisis are likely to dominate U.S. government thinking in the new year, bumping down healthcare reform on the priority list for the new president and members of Congress.
That spells relative stability for drug stocks, which is attractive to investors seeking safety after a terrible October for the stock market, one of the worst months on record…
A Democratic sweep in Tuesday’s U.S. elections may clear the way for changes to Internet policy sought by Google Inc (GOOG.O) that would bar Internet providers from discriminating against some Web content.
The “net neutrality” issue pits Internet service providers (ISPs) like Comcast Corp (CMCSA.O) and AT&T (T.N) against content companies like Google and Microsoft Corp (MSFT.O).
Meanwhile, Obama’s win is also seen as a victory for labour unions and auto companies (so, everyone, basically).
AP: Barack Obama’s victory in the presidential race will give labour unions and the embattled U.S. auto industry a strong ally in the White House, and likely will put pressure on oil and gas producers and pharmaceutical companies.
His election Tuesday also makes congressional approval of a fresh economic stimulus package — perhaps as large as $150 billion — more likely, economists said…
Obama has promised to help Ford Motor Co., General Motors Corp. and Chrysler LLC by doubling a recently approved loan program to $50 billion to help the auto industry develop more fuel-efficient cars.
Hey, even the hope of an Obama presidency was enough to make people forget about the recession and splurge on Champagne, as a college student in Pittsburgh discovered.
NY Times: After my stop at Starbucks, that perennial symbol of sleep-deprived college life, I decided to duck into another heavily frequented beverage provider: the wine and liquor store next door.
It’s a Tuesday night during mid-term week, and the sparkling wine aisle was conspicuously bare.
I asked the clerk what had happened:
“Everyone’s been buying champagne — you’d think it was New Year’s Eve.”
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