Trump's win ripples across stock market

Trump's win ripples across stock market
© Getty Images

Stocks for coal companies and private prisons spiked in the first day of trading after President-elect Donald TrumpDonald TrumpTrump takes shot at new GOP candidate in Ohio over Cleveland nickname GOP political operatives indicted over illegal campaign contribution from Russian national in 2016 On The Money — Dems dare GOP to vote for shutdown, default MORE’s stunning victory Tuesday night.

ADVERTISEMENT

Markets were struggling to digest the new political reality for the United States during trading Wednesday, but there were some clear winners in the immediate aftermath. 

The stock price for Corrections Corp. of America, the nation’s largest private prison company, jumped 38 percent in the first hours of the day’s trading. Under President Obama, the Justice Department had taken steps the end the use of private prisons to house federal inmates.

And the stock price for Peabody Energy, the largest private coal company in the world, jumped even higher, soaring over 50 percent in value. Trump had repeatedly vowed as a candidate that he would reinvigorate the nation’s coal industry, though he has not detailed a specific plan. 

The banking industry also enjoyed a good day on Wall Street following Trump’s win. Stocks in JPMorgan Chase, Goldman Sachs and Wells Fargo all rose by several percentage points. Healthcare stocks also posted strong gains.

Alternatively, gun stocks took a beating in Wednesday’s trading. The value of both Smith & Wesson and Sturm Ruger were down over 12 percent. Gun manufacturers frequently see bumps in their stock prices when Democratic politicians discuss tightening gun laws, as those initiatives also come with a boost in sales. But Trump’s surprise win has lessened concern about a gun crackdown.

And the Mexican peso took a beating, as investors tried to prepare for Trump’s promised crackdown on immigration and toughen trade deals with the country. Trump has vowed to renegotiate the North American Free Trade Agreement and make it difficult for Mexicans working in the United States to send money to family back home. 

Meanwhile, health insurance shares have seen mixed results. UnitedHealth Group, Inc., is down 2 percent at $139.81 in mid-day trading. Anthem, Inc., is also down by less than one percent, while Aetna, Inc., and Humana, Inc., have noticed modest gains.

This comes as health insurers have blamed their participation in ObamaCare for monumental losses, but Trump’s threat to change the law could have an unforeseen impact on the market.

Marijuana supporters won battle initiatives in eight states Tuesday, but pot companies saw shares fall as uncertainty abounds over Trump’s pot policy.

Cannabis Science, Inc., and Medical Marijuana, Inc., each saw their shares drop 12 percent in mid-day trading. The American Cannabis Company, Inc., was down more than 8 percent, and General Cannabis Corp. fell 7 percent.

Those losses come despite California, Massachusetts, Nevada, Arkansas, Florida, Montana, North Dakota, and most likely Maine passing ballot measures to legalize either recreational or medical marijuana.

“Now, we have this big question mark on how Trump’s going to approach marijuana” said Chris Walsh, editorial director of Marijuana Business Daily.

Overall, the financial markets spent the first hours of trading largely taking Trump’s win in stride. There was early drama in financial markets late Tuesday, as it became apparent Trump was outperforming expectations. Futures in the Dow Jones Industrial Average dropped by over 800 points at one point Tuesday evening, but by the time markets opened in the morning, the response was much more muted.

The Dow actually climbed as Democrat Hillary ClintonHillary Diane Rodham ClintonGOP political operatives indicted over illegal campaign contribution from Russian national in 2016 Clinton lawyer's indictment reveals 'bag of tricks' Attorney charged in Durham investigation pleads not guilty MORE conceded the race to Trump, rising roughly 200 points from the opening of the day’s trading.

Updated at 1:29 p.m. Tim Devaney contributed.