MW Banks and Tesla lead list of top-performing stocks following Trump's victory
By Philip van Doorn
The S&P 500 financial sector rose 5% when trading opened on Wednesday
Investors had a clear reaction to Donald Trump's election victory early on Wednesday, sending shares of banks - especially credit-card lenders - soaring.
In early trading, the Dow Jones Industrial Average DJIA was up 1,286 points (or 3%) to 43,508.19. The S&P 500 SPX was up 1.8%, and this is how its 11 sectors were faring:
Sector or index Nov. 6 price change 2024 price change 2023 price change 2022 price change Price change since end of 2021
Financials 5.1% 30.3% 9.9% -12.4% 25.5%
Industrials 2.7% 22.4% 16.0% -7.1% 32.0%
Energy 2.3% 10.7% -4.8% 59.0% 67.7%
Consumer Discretionary 2.1% 17.9% 41.0% -37.6% 3.8%
Information Technology 1.7% 33.1% 56.4% -28.9% 48.0%
Communication Services 1.2% 31.7% 54.4% -40.4% 21.1%
Materials 0.9% 10.1% 10.2% -14.1% 4.3%
Healthcare 0.6% 8.9% 0.3% -3.6% 5.4%
Consumer Staples -0.5% 13.5% -2.2% -3.2% 7.5%
Utilities -0.8% 22.6% -10.2% -1.4% 8.5%
Real Estate -1.8% 7.2% 8.3% -28.4% -16.9%
Source: FactSet
The financial sector took a strong lead. Justin Menne, a portfolio manager at Harbor Capital Advisors in Chicago, said the action probably resulted from "a combination of deregulation, better backdrop for M&A activity, and business sentiment improvement." He cautioned that it was "too early to make dramatic portfolio changes."
He also pointed to the improving interest-rate setup for banks during an interview with MarketWatch.
Read: Schwab leads list of banks expected to profit most in 2025 from Fed's rate cuts
Menne added, "The question now for banks is at what point valuations are stretched."
Shares of JPMorgan Chase & Co. $(JPM)$ were up 6.1% early Wednesday. The stock was trading for 2.3 times tangible book value, compared with a five-year average valuation of 2 and a 10-year average valuation of 1.9.
During the bank's third-quarter earnings conference call on Oct. 11, JPMorgan Chase Chief Financial Officer Jeremy Barnum illuminated concerns over bank-stock valuations. He said that "buying stock back at more than two times tangible book value is not necessarily the best thing to do, because we think we'll have better opportunities to redeploy it or to buy back at cheaper prices at one point. Markets do not stay high forever."
Best and worst performing S&P 500 stocks out of the gate Wednesday
Here are the 20 stocks among the S&P 500 that were up the most in the first few minutes of trading on Wednesday:
Company Ticker Nov. 6 price change 2024 price change 2023 price change 2022 price change Price change since end of 2021 Charles River Laboratories International Inc. CRL 21.4% -3.1% 8% -42% -39% Discover Financial Services DFS 20.1% 62.2% 15% -15% 58% $Capital One Financial Corp(COF-N)$. COF 17.2% 48.4% 41% -36% 34% Wells Fargo & Co. WFC 14.8% 49.4% 19% -14% 53% Synchrony Financial SYF 14.3% 70.1% 16% -29% 40% Nucor Corp. NUE 13.6% -5.6% 32% 15% 44% Tesla Inc. TSLA 12.7% 14.1% 102% -65% -20% CVS Health Corp. CVS 11.8% -21.7% -15% -10% -40% Humana Inc. HUM 11.3% -36.7% -11% 10% -37% Steel Dynamics Inc. STLD 10.7% 27.2% 21% 57% 142% Goldman Sachs Group Inc. GS 10.3% 50.6% 12% -10% 52% Old Dominion Freight Line Inc. ODFL 9.8% 12.2% 43% -21% 27% Huntington Bancshares Inc. HBAN 9.6% 33.9% -10% -9% 10% $Citigroup Inc(C-N)$. C 8.8% 34.7% 14% -25% 15% Vulcan Materials Co. VMC 8.8% 30.7% 30% -16% 43% Morgan Stanley MS 8.7% 37.4% 10% -13% 31% KeyCorp KEY 8.5% 30.1% -17% -25% -19% Trimble Inc. TRMB 8.1% 25.3% 5% -42% -24% Howmet Aerospace Inc. HWM 8.0% 103.9% 37% 24% 247% Citizens Financial Group Inc. CFG 7.7% 37.2% -16% -17% -4% Source: FactSet
Click on the tickers for more about each company, including news coverage, price ratios, financials and charts.
Shares of Tesla Inc. $(TSLA)$ were up 12.7% early Wednesday, as Chief Executive Elon Musk campaigned on Trump's behalf.
The Ratings Game: Tesla's stock is soaring on Trump's win. Here's why Wall Street is so upbeat.
These were the 10 worst-performing S&P 500 stocks in early trading Wednesday:
Company Ticker Nov. 6 price change 2024 price change 2023 price change 2022 price change Price change since end of 2021 Super Micro Computer Inc. SMCI -21.5% -23.5% 246% 87% 395% First Solar Inc. FSLR -13.9% 7.9% 15% 72% 113% Enphase Energy Inc. ENPH -13.8% -41.4% -50% 45% -58% American Tower Corp. AMT -7.8% -8.7% 2% -28% -33% Molina Healthcare Inc. MOH -7.5% -14.7% 9% 4% -3% International Flavors & Fragrances Inc. IFF -7.2% 13.6% -23% -30% -39% Universal Health Services Inc. Class B UHS -6.8% 29.8% 8% 9% 53% Centene Corp. CNC -6.6% -18.5% -10% 0% -27% NextEra Energy Inc. NEE -6.6% 21.0% -27% -10% -21% SBA Communications Corp. Class A SBAC -6.4% -15.7% -9% -28% -45% Source: FactSet
Super Micro Computer Inc. $(SMCI)$ was the worst early performer among the S&P 500. Here are the latest updates on the company's accounting difficulties and late filing of financial statements:
-- Super Micro's stock tumbles, as one line was 'all investors needed to hear'
(MORE TO FOLLOW) Dow Jones Newswires
November 06, 2024 10:45 ET (15:45 GMT)
MW Banks and Tesla lead list of top-performing -2-
-- Super Micro still offers no clear answers to investors
Read: Tomi Kilgore's guide to the wealth of information available for free on the MarketWatch quote page.
Don't miss: Why these 17 stocks in the S&P 500 are now more compelling
-Philip van Doorn
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
November 06, 2024 10:45 ET (15:45 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Comments