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    • Trump’s victory sparked a stock market rally; Arizona Stocks Are Mixed
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    Trump’s victory sparked a stock market rally; Arizona Stocks Are Mixed

    Umito Posted on

    Donald Trump’s presidential victory sparked a stock market rally that pushed the Dow Jones Industrials to a record high, but the impact was mixed for stocks and industries with a strong presence in Arizona.

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    Donald Trump’s victory in the presidential election sparked a stock market rally and could change the outlook for many companies with a significant presence in Arizona, from banks and supermarkets to those with interests in green energy production.

    Investors greeted the election news by pushing the widely followed Dow Jones Industrial Average to a record close of 43,730, up 1,508 points for the day or 3.5%.

    Few sectors fared better during the day than banks, which complained about tough regulations put in place by the Biden administration. JPMorgan Chase, the banking giant with the largest share of deposits in Arizona, rose more than 11% on Nov. 6, while its two competitors, Wells Fargo and Bank of America, jumped about 13% and 8%, respectively. Jamie Dimon, CEO of JPMorgan Case, recently called on his fellow banking executives to fight regulations he believes are harmful.

    Phoenix-based Western Alliance Bancorp, the largest banking company headquartered in Arizona, fared slightly better, up nearly 14% for the day. Together, these four banks account for nearly 76% of all state deposits.

    “The Trump administration is expected to seek to roll back federal regulations, including efforts to ease regulatory burdens on the oil and gas industry and the financial sector,” the statement said. investment firm T. Rowe Price in a post-election commentary.

    Utilities and supermarkets could face less regulation

    Another gainer was Phoenix-based Pinnacle West Capital, parent company of electric utility APS, which jumped nearly 4%. This is a larger gain than that recorded overall by electric utilities, perhaps boosted by prospects of a Republican sweep of three vacant seats on the Arizona Corporation Commissionwhich regulates the company and the rates it charges customers.

    By including two incumbents who did not need to run for reelection, all five Regulatory Committee seats could likely be filled by Republicans starting in 2025. Voters rejected claims by three Democratic primary challengers that the Arizona needed to adopt solar electricity faster. pace.

    Many Arizona grocery shoppers have been following Kroger’s proposed $24.6 billion purchase of the Albertsons-Safeway chain, which operates Fry’s grocery stores in Arizona. The merger has been blocked by lawsuits, including one brought by the Biden administration, but a Trump administration could view the deal more favorably, which both companies insist is necessary to help them compete with competitors non-union stores such as Walmart, Amazon.com, Costco and Target.

    Kroger said it earlier planned to sell about 100 stores in Arizona to C&S Wholesale Grocers to address regulators’ concerns about market concentration in the state in hopes of completing the merger.

    Kroger stock rose about 4% and Albertsons stock rose almost 2%.

    Rallies for education, prison stocks

    Other big gainers among major Arizona-based companies included Phoenix-based trucking giant Knight-Swift Transporation (up 7% for the day), Phoenix cable TV company Cable One ( up 11%) and Align Technology, a clear service provider. dental aligners headquartered in Tempe (up 6%). Healthcare stocks experienced mixed results in the aftermath of the election. Few large public health care companies are headquartered in Arizona.

    Phoenix-based Grand Canyon Education, parent company of Grand Canyon University, jumped nearly 15% for the day. The Biden administration had fined the company $37 million earlier this year, prompting legal action from the Goldwater Institute.. At issue are allegations that the company misrepresented the costs incurred by students to complete their doctoral programs.

    Companies that operate prisons also had a big day on Wall Street, with investors expecting stronger border security and law enforcement in general. GEO Group and CoreCivic help run the Central Arizona Correctional Complex in Florence and other prisons here. Their stock prices jumped about 42% and 29%, respectively, for the day.

    Solar and certain semiconductor stocks are affected

    But the election results also brought losers to stock markets as investors reacted to the possibility that Trump would scale back his support for green energy. Shares of Tempe-based First Solar, which makes solar panels and related equipment, fell 10%. Actions of Lucid Group, a California-based manufacturer of luxury electric vehicles with a state-of-the-art factory in Casa Grandeslipped about 5%.

    Arizona tech stocks were mixed for the day, with Rogers Corp., a specialty materials company, up more than 8%, Taser maker Axon up 4% and ON Semiconductor up 2%. . But Microchip Technology, the most valuable chipmaker headquartered in Arizona, stumbled 2%.

    Shares of Freeport-McMoRan, a world-class copper producer and one of the most valuable Arizona-based companies, were flat for the day.

    Taiwan Semiconductor Manufacturing Co., a dominant player in the sector which is building a $65 billion chip manufacturing complex in north Phoenix, finished down about 2% after falling 5% earlier in the day.

    Trump has criticized “rich” semiconductor manufacturers and recently blasted the CHIPS and Science Act.a landmark piece of legislation under President Biden, who visited both the TSMC Phoenix campus and an Intel Corp complex. in Chandler.

    Biden’s Commerce Department earlier announced preliminary grants of $8.5 billion for Intel and $6.6 billion for TSMC, as well as $400 million for Amkor Technology to build semiconductor testing/packaging facility in Peoria. Shares of Tempe-based Amkor were up 4% for the day and Intel’s were up about 7%. None of these companies have yet received funding under the CHIPS Act.

    Despite the big one-day rally, Dave Sekera, senior market strategist at Morningstar, warned investors not to get too carried away with the post-election “Trump move.” He warned that potential policy changes are often watered down before they are passed.

    Contact the writer at [email protected].

    Umito
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