As Trump approaches the first 100 day benchmark of his presidency, the Standard & Poor’s 500 index is up almost 6% signaling a passing grade.
Some Faring Better Than Others
Surprisingly, the financial sectors were only up modestly as doubts about regulatory reform percolate. Yet utilities and consumer staples performed better than expected.
Some areas are predicted to perform well going forward even though they haven’t improved yet. Some that are predicted to improve are: industrials, energy sectors, and infrastructure investments.
Banking stocks are doing well during the first 100 days in advance of proposed deregulation of the financial industry. Retail and consumer industries are likely to improve if a general tax cut is enacted giving more purchasing power to consumers. Fossil fuel related industries should improve as the president hypes coal and oil.
Yet the current administration’s stance is negatively impacting pharmaceuticals as they try to drive drug prices down. And renewable energy sectors are seeing difficult times with the administration’s focus on fossil fuels.
Looking to the Future
Rising tensions in North Korea and Syria will likely create an increase for companies in defense and production of military equipment.
Technology indices Nasdaq Internet & Global X Social Media have had a strong first quarter.
The outlier in the first 100 days is energy. Energy stocks are down even though you would expect them to be up with the new administration. The feeling is that as regulations get more accommodating commodity prices will decline and profitability will be hindered.
Overall the first 100 days signal a high performing stock market that will likely continue.
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