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Trump Bump: Which Companies Were in Focus During the President's Speech to Congress?
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When President Donald Trump addressed a joint session of Congress Tuesday night, the first major speech since his inaugural address, he named multiple companies he has directly affected since he first entered the Oval Office on Jan. 20.
Since his speech last night, most of the companies have seen their stock prices rise, including Harley-Davidson, Inc. (HOG - Free Report) , which is up 3.82% Wednesday to $58.53. But President Trump didn’t kickoff his speech by name-dropping major U.S. corporations.
He began his address by condemning recent violence against minority groups and crimes rates in some major U.S. cities. He then wasted no time with regard to his big infrastructure plans, which sent some stocks soaring today.
Then, President Trump stated the following:
“Since my election, Ford, Fiat-Chrysler, General Motors, Sprint [(S - Free Report) ], Softbank, Lockheed, Intel, Walmart, and many others, have announced that they will invest billions of dollars in the United States and will create tens of thousands of new American jobs.”
Although Trump did not directly endorse these companies, all but two of the companies saw stock prices rise.
Ford Motor Company (F - Free Report) went up 1.28% to $12.69 per share on Wednesday. Fiat-Chrysler Automobiles N.V. stock rose 0.96% to $11.05 per share. And General Motors Company (GM - Free Report) stock gained 1.60% to $37.43 per share.
Lockheed Martin Corporation (LMT - Free Report) went up 0.68% to $268.38 per share. This move is mostly due to Trump’s recent announcement to boost the defense budget. While SoftBank Group Corp. (SFTBY) stock rose 2.28% Wednesday to $38.21 per share.
Intel Corporation (INTC - Free Report) stock fell 0.75% to $35.93 per share on Wednesday, along with Wal-Mart Stores, Inc. (WMT - Free Report) , which dipped 0.55% to $70.54 per share.
The biggest mover Wednesday was not mentioned in the group near the top of Trump’s speech. Instead, the President discussed the motorcycle giant after he addressed taxes and tariffs.
“I just met with officials and workers from a great American company, Harley-Davidson. In fact, they proudly displayed five of their magnificent motorcycles, made in the USA, on the front lawn of the White House.”
Trump highlighted Harley-Davidson to discuses how it has become harder for American companies to compete internationally. But in 2016, roughly 40% of its motorcycles were sold outside of the U.S.
The Dow Jones industrial average gained more than 300 points Wednesday, and it reached 21,000 for the first time ever. The last jump of this magnitude was made the day before the election in Nov. 2016.
Wednesday’s major move came just one day after the Dow’s streak of 12 straight record-high closings ended Tuesday due in part to the uncertainty surrounding Trump’s address to Congress.
Tax Rates and Rates Hikes
Trump also talked about revamping the U.S. Tax system Tuesday night. “My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone.”
The White House plans to try to lower the top tax rate to 33% from over 39%. Trump also wants to simplify the corporate tax code. As of 2014, the U.S. had the highest corporate tax rate on the planet among major economies. Japan was next at roughly 36%. Since then, Japan has lowered those rates to just over 30%.
KPMG has an interactive graphic outline of global tax rates, including corporate rates from 2010-2016 that is sortable by continent and or country.
On the back of Trump’s massive trillion dollar infrastructure plan, a Fed rate hike looks even more certain. Inflation will increase naturally along with the massive government spending. Therefore the Fed will likely combat this with rate hikes to keep inflation near the 2% target.
Yesterday, speculation regarding a March Fed rate hike was roughly 30%. Today, that chance moved to 70%. The Fed's policy-setting body meets on March 14-15.
A full transcript of Trump’s address can be found here.
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Trump Bump: Which Companies Were in Focus During the President's Speech to Congress?
When President Donald Trump addressed a joint session of Congress Tuesday night, the first major speech since his inaugural address, he named multiple companies he has directly affected since he first entered the Oval Office on Jan. 20.
Since his speech last night, most of the companies have seen their stock prices rise, including Harley-Davidson, Inc. (HOG - Free Report) , which is up 3.82% Wednesday to $58.53. But President Trump didn’t kickoff his speech by name-dropping major U.S. corporations.
He began his address by condemning recent violence against minority groups and crimes rates in some major U.S. cities. He then wasted no time with regard to his big infrastructure plans, which sent some stocks soaring today.
Then, President Trump stated the following:
“Since my election, Ford, Fiat-Chrysler, General Motors, Sprint [(S - Free Report) ], Softbank, Lockheed, Intel, Walmart, and many others, have announced that they will invest billions of dollars in the United States and will create tens of thousands of new American jobs.”
Although Trump did not directly endorse these companies, all but two of the companies saw stock prices rise.
Ford Motor Company (F - Free Report) went up 1.28% to $12.69 per share on Wednesday. Fiat-Chrysler Automobiles N.V. stock rose 0.96% to $11.05 per share. And General Motors Company (GM - Free Report) stock gained 1.60% to $37.43 per share.
Lockheed Martin Corporation (LMT - Free Report) went up 0.68% to $268.38 per share. This move is mostly due to Trump’s recent announcement to boost the defense budget. While SoftBank Group Corp. (SFTBY) stock rose 2.28% Wednesday to $38.21 per share.
Intel Corporation (INTC - Free Report) stock fell 0.75% to $35.93 per share on Wednesday, along with Wal-Mart Stores, Inc. (WMT - Free Report) , which dipped 0.55% to $70.54 per share.
The biggest mover Wednesday was not mentioned in the group near the top of Trump’s speech. Instead, the President discussed the motorcycle giant after he addressed taxes and tariffs.
“I just met with officials and workers from a great American company, Harley-Davidson. In fact, they proudly displayed five of their magnificent motorcycles, made in the USA, on the front lawn of the White House.”
Trump highlighted Harley-Davidson to discuses how it has become harder for American companies to compete internationally. But in 2016, roughly 40% of its motorcycles were sold outside of the U.S.
The Dow Jones industrial average gained more than 300 points Wednesday, and it reached 21,000 for the first time ever. The last jump of this magnitude was made the day before the election in Nov. 2016.
Wednesday’s major move came just one day after the Dow’s streak of 12 straight record-high closings ended Tuesday due in part to the uncertainty surrounding Trump’s address to Congress.
Tax Rates and Rates Hikes
Trump also talked about revamping the U.S. Tax system Tuesday night. “My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone.”
The White House plans to try to lower the top tax rate to 33% from over 39%. Trump also wants to simplify the corporate tax code. As of 2014, the U.S. had the highest corporate tax rate on the planet among major economies. Japan was next at roughly 36%. Since then, Japan has lowered those rates to just over 30%.
KPMG has an interactive graphic outline of global tax rates, including corporate rates from 2010-2016 that is sortable by continent and or country.
On the back of Trump’s massive trillion dollar infrastructure plan, a Fed rate hike looks even more certain. Inflation will increase naturally along with the massive government spending. Therefore the Fed will likely combat this with rate hikes to keep inflation near the 2% target.
Yesterday, speculation regarding a March Fed rate hike was roughly 30%. Today, that chance moved to 70%. The Fed's policy-setting body meets on March 14-15.
A full transcript of Trump’s address can be found here.
Everything You Need to Know About Snapchat BEFORE It Goes Public
You may be curious about the buzz surrounding Snap Inc.'s IPO on March 2. With the company expected to be valued around $22 billion, it is expected to be the largest IPO since 2014. But should you snap up this tech stock on Day 1? In the 2017 IPO Watch List, you'll get an inside look at Snap's exciting prospects and potential challenges.
You'll also learn about 4 other exciting tech companies with jaw-dropping growth. Each could go public in the coming months. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the latest scoop. Download this IPO Watch List today for free >>