Investors, a nervous crowd at best, began
At the same time Wall Street began to look favorably on infrastructure and banking. One question worth asking is where did the money end up?
Dow Up Consumables Down
The Dow Jones industrial average opened on a record high Thursday. This followed a strong rally Wednesday immediately after the presidential election. At the same time foods and other consumer products were down.
Meanwhile shares of ConAgra dropped 7.9% to $34.30 and Procter and Gamble shares fell 3.9% to $82.60.
Once again, America’s newly-named president-elect, Donald J. Trump seems to be behind market movement. Some of that goes back to Trump’s victor speech early Wednesday morning.
Trump 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.”
That’s Not All
Infrastructure hype explains companies like Caterpillar, but what about JPMorgan? It
All this is plenty of reason for investors dropping defensives picking up industrial and banking stocks in anticipation of a rally moving into 2017.
Anticipation that a Trump presidency would be good for machinery and banks makes sense. But what’s wrong with Coca-Cola and the others? Turns out there may be a Trump effect there as well.
ConAgra is a little different. Thursday marked the official separation of ConAgra’s commercial Lamb Weston business leading investors to reevaluate the company in light of the commercial foods spin off.