Wall Street is agog over post-election stock prices this week, with the U.S. stock market cresting record highs through early Monday trading this week.
Many analysts had expected a major market reversal on the election results, and U.S. stock futures did fall by some 800 points immediately after Donald Trump won the 270 electoral votes needed to gain the White House. But the Dow finished up more than 200 points the following day, and the Trump rally has been robust since.
"Wall Street welcomed the surprise victory of Republican Donald Trump and the outcome was not bad as expected," said Zacks Research, in a research note late last week. "This is especially true as the major indices logged in more than 1% gains following the results, reflecting a dramatic reversal from the knee-jerk panic seen in global markets overnight when Trump showed a stunning advance in votes."
For sure, in the exchange-traded fund market, the Trump presidency is already separating the winners and the losers.
In the winner's circle sit health care funds, states Zacks. The firm especially likes biotechnology and pharmaceutical sectors, which have "emerged as the clear winners as Trump moving to White House has erased concerns over the limit to drug pricing, which was the highlight of Hillary Clinton's campaign." On an individual fund basis, Zacks touts ALPS Medical Breakthroughs ETF (SBIO) and Eleven Bio (EBIO) , which are already up significantly in the week following the election.
On the downside, Zacks points to ETFs linked to the Mexican economy as the "hardest hit" from a Trump victory, citing a sinking peso and declining stock prices going forward. "That's because Trump threatened to renegotiate or terminate the North American Free Trade Agreement that would hamper the trade relationship between Mexico and the U.S., and hurt the country's exports," Zacks states. "In addition, Trump seeks to build a wall along the U.S. southern border to keep Mexican immigrants away. This would directly restrain Mexico's balance of payments." Zacks cites iShares MSCI Mexico Capped ETF (EWW) , as a primary potential victim of a Trump presidency.