Displaying items by tag: industrials

From temperature-sensitive coatings used for windows to shape memory alloys used in aircraft wings, the widening industrial applications of smart materials ... See More

(Washington)

Biden’s new proposed $2 tn infrastructure package is a gargantuan bill (coming right after the newest pandemic relief package) that will have significant effects on stocks generally, and specific ones more narrowly. The plan is so big that it harkens back to 1950s era spending. Barron’s described it best, saying “At 10% of current gross domestic product, doled out over eight years, the plan reads like a Rooseveltian blueprint for economic and social engineering”. The big winners are pretty clear: infrastructure stocks, and more specifically construction and industrials. The Invesco DWA Industrials Momentum (PRN) and the Industrial Select Sector SPDR (XLI) are great ways to play the rise in these types of shares, with the latter offering more large-cap exposure. In terms of specific names, look for MasTec, Aecom, and Jacobs Engineering Group.

FINSUM: Biden is setting up infrastructure stocks to have a golden run over the next few years. As the package inches closer to passing, these sectors should rise.

(New York)

The trade war has far reaching consequences. One way to think about it, as bleak as it sounds, is that there is no winner whatsoever. However, there are sectors, ETFs, and stocks that will likely lose more than others. The technology, materials, and industrial sectors stand to lose the most in a prolonged trade war as they have the largest proportion of manufacturing in China and the highest proportion of Chinese customers. Boeing and Ingersoll-Rand, for instance, are both very exposed to China. However, the greatest pain is likely to be felt by technology companies in the iShares PHLX Semiconductor ETF like Qualcomm, Micron Technology, Broadcom, and Texas Instruments.

FINSUM: Basically anyone making or selling a large amount of products in China is in trouble. We also wonder about how increased tariffs would flow through to retailers who source a high percentage of their products in China (e.g. Walmart, Target etc.).

(New York)

The trade war seems to be back on with full force. Trump spooked markets today by warning that he may impose higher tariffs on China. With that in mind, here are the stocks and sectors most at risk of big selloffs. Industrials and technology shares are the most vulnerable to tariff worries. It is difficult to say what stocks will be most affected because the potential impacts are widespread. However, the following list looks very at-risk: Colfax, Danaher, Emerson Electric, Fortive, Gates Industrial, 3M, and Kennametal.

FINSUM: We are very early in the volatility for this round of trade fears. Hopefully this minor panic will be the extent of it.

(New York)

Markets and the global economy got some very welcome news this weekend. On the sidelines of the G-20 conference, President Trump and Chinese leader Xi came to a “truce” in their trade war spat this weekend after what they both called a “high successful meeting”. Accordingly, several industry-specific stocks should react well to the news. These stocks are: Stanley Black & Decker, Caterpillar, Emerson Electric, AGCO Corporation, and 3M.

FINSUM: Many of these stocks already have big tariff-driven headwinds in their 2019 outlooks, so the possibility for big reversals seems likely. A lot of gloom had already set in, which means there is significant upside.