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š Trump's Win May Be This Stock's Loss
Plus, the market reacts to the election results.
Happy Wednesday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.
š© | US stocks rose sharply Wednesday to record highs after Donald Trump won the 2024 US presidential election.
š | One Notable Gainer: Shares of for-profit prison company GEO Group soared 42%, likely due to Trumpās win and stark law-and-order rhetoric.
š | One Notable Decliner: First Solar shares shed 10%, leading a decline in solar stocks on fears a Trump term will challenge clean energy progress.
šŖ | Tomorrow's Trade: Five Below Or Six Feet Under? Scroll down for more.
Plus, we're entering a new era with a new tax landscape. It's time to optimize your taxes with today's partner, Gelt.
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TOGETHER WITH GELT
With the election results in, shifts in tax laws are on the horizon. Gelt is here to help you understand whatās next and make the most of new opportunities.
Whether you're a high-income earner, business owner, or investor, our experts will guide you through potential tax adjustments, maximize deductions, and implement strategic planning for the year aheadāall while ensuring full compliance.
Donāt let new regulations catch you off guardāpartner with Gelt today for peace of mind and proactive tax planning strategies.
Get in touch and stay ahead of the curve!
S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
Wells Fargo, Tesla, Super Micro
WFC (+13.2%) / GS (+13.2%) These Bank Stocks Break Out Amid Huge Financial Rally After Trump Win (Investors.com)
TSLA (+14.8%) Tesla Shares Jump And Elon Musk Becomes Nearly $20 Billion Richer With Trump Victory (Forbes)
SMCI (-18%) Super Micro Computer stock bleeds 24% after it canāt even say when it will post actual earnings (Quartz)
CVS (+11.3%) CVS Stock Rises After Earnings, Exec Changes. Trump Win Is Helping, Too. (Barronās)
TLRY (-13%) Floridaās Marijuana Movement Faces Setback As Amendment 3 Falls Short (Finimize)
OVERHEARD ON THE STREET
CNBC: The average rate on a 30-year fixed mortgage jumped 9 basis points to 7.13% following Trumpās win, causing housing stocks to decline.
WSJ: Hereās what Trumpās win could mean for the healthcare sector, Obamacare, and Medicare.
Barronās: RFK Jr.ās potential role in the second Trump administration could impact national food and drug policies.
AP: Bitcoin hit a new all-time high today, and crypto-related stocks rallied as investors anticipated that Trump's victory would boost cryptocurrencies.
ABC: Many view a second Trump term as favorable for the economy, but some economists worry Trumpās policies could worsen inflation.
TOMORROWāS TRADE IDEA, TODAY
Five Below Or Six Feet Under?
Price Estimates Are Falling
The race has been called and former President Donald Trump has secured another term. One of his key campaign promises was to increase tariffs on China. Bank of America (BAC) believes this could be bad news for discount retailer Five Below (FIVE).
The bank recently downgraded the stock to Underperform and cut its price target by $23 to $75 per share, implying around 11% downside from todayās closing price.
Lacking Pricing Power
As its name suggests, Five Below delivers reliably cheap goods to consumers ā and it relies on Chinaās affordable manufacturing to do so. As a result, steep tariffs could result in substantial headwinds for Five Below moving forward, according to BofA analyst Melanie Nunez.
Nunez does not believe that Five Below has the pricing power to help offset the tariffs. The analyst adds that the company is already taking steps to reprioritize cheaper items.
Falling Short
The stock has already fallen nearly 60% YTD. And it has fallen an additional 10% since the election was called for Trump. But BoA believes the stock has further to fall.
Nunez expects the tariffs to begin within the first month of Trump taking office. If the bank is correct, Five Below may be a potential candidate for investors seeking shorting opportunities.
Are you bullish or bearish on Five Below (FIVE) over the next 12 months? |
TOGETHER WITH GELT
With the election results in, shifts in tax laws are on the horizon. Gelt is here to help you understand whatās next and make the most of new opportunities.
Whether you're a high-income earner, business owner, or investor, our experts will guide you through potential tax adjustments, maximize deductions, and implement strategic planning for the year aheadāall while ensuring full compliance.
Donāt let new regulations catch you off guardāpartner with Gelt today for peace of mind and proactive tax planning strategies.
Get in touch and stay ahead of the curve!
ON OUR RADAR
Reuters: The uneasy alliance between Donald Trump and Elon Musk may be tested in the wake of the election.
Barronās: McDonald's $5 meal has given the chain a competitive edge in the fast-food sector.
WSJ: This perfume brand found success on TikTok, counterintuitively courting younger buyers who never even had a chance to smell it.
CNBC: Stellantis announced plans to eliminate a manufacturing shift and lay off around 1,100 workers at its Jeep plant in Ohio.
US News: German Chancellor Olaf Scholz dismissed Finance Minister Christian Lindner following a budget dispute, effectively dissolving the nationās ruling coalition.
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