Industries within materials
On November 9, the materials sector rose ~2.1%, as we discussed in the first part of this series. The construction materials industry rose 10.6% on the back of Trump’s heavy emphasis on infrastructure. He even mentioned infrastructure (XLB) in his victory speech. He said, “We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals. We’re going to rebuild our infrastructure, which will become, by the way, second to none, and we will put millions of our people to work as we rebuild it.”
Next in line
The metals and mining industry rose 7.4%. It isn’t surprising given that Trump intends to “put American steel made by American workers into the backbone of America’s infrastructure.” Naturally, steel companies gained on the back of Trump’s victory.
The containers and packaging industry also rose 1.2%. The industry primarily services food and beverage, pharma, and household products. With healthcare expected to gain and Trump’s intention to create jobs, the containers and packaging industry will also benefit. Keep in mind that consumer discretionary rose by 18 basis points, while consumer staples fell 1.3%.
The chemicals industry includes companies such as CF Industries (CF), Monsanto (MON), Dow Chemicals (DOW), and Mosaic (MOS). The industry rose ~1% yesterday. The chemicals industry may have risen as a result of Trump’s emphasis on tapping non-renewable energy resources in the US. We’ll discuss this more in the next part of this series.
Trump’s views on economic issues find close resonance with US steel. He appears to favor an aggressive trade policy, often citing job losses due to imports.
Yesterday, Apple (AAPL) launched a newly upgraded range of its iPad Air and iPad mini devices ahead of its March 25 special event.
Nike (NKE) is scheduled to report its earnings results for the third quarter of fiscal 2019 after the market closes on March 21.
On March 18, Chesapeake Energy’s (CHK) implied volatility was 51.9%, which is ~14.7% less than its 15-day average.
Sprint (S) reported an adjusted EPS of $0.06 in the first nine months of fiscal 2018—compared to $0.08 during the same period in fiscal 2017.
On March 18, Brent crude oil May futures settled ~$8.2 higher than the WTI crude oil May futures. On March 11, the spread was ~$9.5.
Out of the 34 analysts covering Broadcom (AVGO), 25 analysts rated the stock a “buy,” while nine analysts rated the stock a “hold."