What a Clinton presidency would mean for the stock market
Wall Street — and the stock market — may now be comfortable with the idea of a Hillary Clinton victory, but her policies and those of other Democrats could be killer for some sectors. Under Hillary's presidency, here's who would be at a loss and who could win: http://cnb.cx/2auQ00X
- •Loser: Oil sectorHillary has pushed for stricter regulations for frackers, and the Democratic platform also proposes ending tax breaks for oil and gas companies.
- •Winner: Clean energyClinton also favors moving away from fossil fuels in favor of renewables. "She wants to cut U.S. oil consumption by a third and replace it with 500 million solar panels," said Jack Ablin, CIO of BMO Private Bank. That could help companies like First Solar, Sunpower and SolarCity.
- •Loser: Minimum wage employersClinton would raise minimum wages, and the Democrats are targeting $15 an hour, but Trump recently weighed in during a television interview and said he could see minimum wages going up to $10. Higher minimum wages would be a negative for restaurants, hotels and retailers, but some retailers could be winners. Wal-Mart, for instance, could feel the pinch of rising wage costs, but it could also see sales go up because many of its shoppers are lower-income workers.
- •Winner: RailroadsThe Democratic platform also plans for an infrastructure bank that would provide funding and loans for traditional infrastructure and broadband projects.
- •Loser: BiotechClinton is viewed as negative for biotechs and drugmakers. The first and biggest market reaction to Clinton was in biotech, which sold off sharply last September after she sent a tweet saying she would go after price gouging. The iShares Nasdaq Biotech ETF IBB recovered in subsequent weeks, but it traded off and has been bumping around in a new lower range.
- •Winner: Content providersAlong with retaining net neutrality, Democrats would like to build out broadband and make wireless internet available across the country, something that could benefit content providers like Netflix and Facebook.
- •Loser: Big banksClinton is seen as negative for big banks because of the Democrats' idea of a modern Glass-Steagall, a Depression-era rule that separated commercial banking from investment banking. It's worth that noting Clinton has not been viewed as someone who would personally favor that. She would also keep new post-financial crisis Dodd-Frank regulations in place for banks, something Trump would abolish.