Election Special: Industries To Win And Lose On Trump's Upset

On today’s episode of the Zacks Friday Finish Line podcast, Content Writer Ryan McQueeney and Editor Maddy Johnson take on this week’s biggest story: the results of the 2016 presidential election.

Maddy and Ryan welcomed Zacks ETF Strategist Eric Dutram for additional help on what was a massive story to process, and Eric kicked off the show with a look at how currencies and commodities reacted to Trump’s shocking upset victory.

For more, read: Here’s How Wall Street Reacted to Donald Trump’s Victory

After that, the hosts dove into an analysis of the industries that stand to win and lose under the Trump administration. The first business mentioned was the world of technology, as stocks like Apple (NASDAQ:AAPL) , Facebook (NASDAQ:FB) , Microsoft (NASDAQ:MSFT) , Alphabet (NASDAQ:GOOGL) , and Amazon (NASDAQ:AMZN) all slumped this week following the election.

Check out more on that story here: Why Tech Stocks (FB, AAPL, AMZN, MSFT, GOOGL) Are Tanking Today

Maddy then highlighted how gun stocks were also sliding in post-election trading, as the “buy ‘em while you can” attitude no longer applies to gun owners. Both Sturm Ruger (NYSE:RGR) and Smith & Wesson (NASDAQ:SWHC) fell mightily this week.

Read more here: Two Days After Trump’s Victory, Gun Stocks are Still Slumping

Continuing on, Eric looked at one industry, banking and finance, which stands to be a winner under the Trump administration, especially with the GOP controlled House and Senate. Deregulation of Wall Street could be coming soon, but the short-term performance of JPMorgan (NYSE:JPM) , PNC (NYSE:PNC) , and Charles Schwab (NYSE:SCHW) is also being helped by rising yields.

Shifting gears back to a potential loser, Ryan looked at why solar stocks like SolarCity (NASDAQ:SCTY) and SunPower (NASDAQ:SPWR) , as well as major solar ETFs like the Guggenheim Solar ETF (NYSE:T) and the Vaneck Vectors Solar ETF (NYSE:T) , were on a downward spiral this week. Does renewable energy have a place in Trump’s America? We’ll see.

Check out more on solar stocks: Solar Stocks (SCTY, SPWR) Slump on Earnings, Trump Victory

Another industry that does stand to benefit, however, is the private prison business. The two main companies in this sphere, GEO Group (NYSE:GEO) and Corrections Corp. of America (NYSE:CXW) , both jumped massively this week based on Trump’s support of private prisons, despite the federal government’s earlier decision to move away from the practice.

For more, read: Here’s Why Corrections Corp. of America (CXW) Skyrocketed Almost 50% Today

Eric also filled us in on why infrastructure stocks like Caterpillar (NYSE:CAT) were soaring this week, while Maddy and Ryan rounded out the show with a look at how healthcare stocks are responding to the Trump win.

Long story short, there’s still a ton of uncertainty in the air! As always, thanks for checking out this week’s episode of the Zacks Friday Finish Line, and make sure to check back next week for even more news from the investment and financial world!

Stocks that Aren't in the News…Yet

You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015, with a stellar average gain of +26% per year. See these high-potential stocks now >>