'Trump Trade' in full swing as markets open for premarket trading
Nov. 06, 2024 4:35 AM ET
By: Yoel Minkoff, SA News Editor
 Chip Somodevilla/Getty Images News
Many markets are moving overnight with Donald Trump all-but-sealing the 2024 presidential race. Things seemed pretty clear after he won the state of Pennsylvania, with no real path to victory for rival Kamala Harris. Republicans also took control of the Senate and could even secure a majority in the House as well.
What's moving?
Equities look set to soar at the open, with Dow futures ( DJI) up by 1,000 points at the time of writing, and contracts linked to the S&P 500 ( SP500) and Nasdaq ( COMP:IND) ahead by 2% and 1.7%, respectively. Small caps also looked poised for a bumper session, with Russell 2000 ( RTY) futures surging 5.4%.
In the crypto arena, Bitcoin ( BTC-USD) inked a new all-time high above $75,000 with Trump leaning into crypto advocacy during his presidential campaign.
Over in the meme camp, shares of Trump Media & Technology ( DJT) skyrocketed 47% to $50 after advancing on 24-hour trading platforms.
Meanwhile, bond yields are up sharply as investors factor in tax reform and cuts, with the yield on the U.S. 10-Year Treasury ahead by 11 basis points to 4.40%. In currency markets, the dollar ( DXY) hit its highest level since July, while Mexico's peso slid about 3% in another "Trump Trade."
Here are some notable stock gainers as premaket trading opens at 4 AM ET:
Tesla
"The people of America gave @realDonaldTrump a crystal clear mandate for change tonight," Tesla (NASDAQ: TSLA) CEO Elon Musk wrote on X. Musk himself is set to oversee "efficiency" efforts for the federal government under the new administration, and his ties and visibility could also help benefit his companies. Shares of Tesla ( TSLA) are up 12% at the time of writing.
Clean energy
Solar stocks are going in the opposite direction, as a Trump victory would likely weigh on the clean energy boom and tax credits awarded in the Inflation Reduction Act. Invesco Solar ETF (NYSEARCA: TAN) -8%, First Solar ( FSLR) -12%, Sunrun ( RUN) -14%, Sunnova ( NOVA) -17%, Maxeon Solar Tech ( MAXN) -19%, Enphase ( ENPH) -9%, NextEra Energy ( NEE) -8%. Other clean tech players are also on the decline, including Vast Renewables ( VSTE) -54%, Eos Energy Enterprises ( EOSE) -20%, Plug Power ( PLUG) -12%, Albemarle ( ALB) -5%, Lithium Americas ( LAC) -4%, ChargePoint ( CHPT) -4%.
Prison stocks
Trump's campaign promise of mass deportation of undocumented immigrants could boost privately run prisons and detention centers. The GEO Group ( GEO) +32% and CoreCivic ( CXW) +23%.
Oil and gas
Halliburton ( HAL) +5%, Baker Hughes ( BKR) +4%, Chevron ( CVX) +3%, ConocoPhillips ( COP) +3%, Exxon Mobil ( XOM) +3%.
Banking
Bank of America (NYSE: BAC) +7%, JPMorgan Chase ( JPM) +6%, Citigroup ( C) +6%, Wells Fargo ( WFC) +6%, Goldman Sachs ( GS) +5%, Morgan Stanley ( MS) +5%, U.S. Bancorp ( USB) +4%.
Industrial and manufacturing
Nucor ( NUE) +9%, U.S. Steel ( X) +9%, Caterpillar ( CAT) +6%, Vulcan Materials ( VMC) +3%, Deere ( DE) +2%.
Defense
Lockheed Martin ( LMT) +3%, Huntington Ingalls ( HII) +3%, General Dynamics ( GD) +2%, Northrop Grumman ( NOC) +2%, RTX ( RTX) +2%.
More crypto
Riot Platforms ( RIOT) +13%, Coinbase Global ( COIN) +12%, MARA Holdings ( MARA) +11%, MicroStrategy ( MSTR) +13%. |
