Shares of industrial and transportation companies rallied as traders bet Donald Trump would put his thumb on the scales of global trade.
General Motors and Ford Motor rallied on bets that Trump would relieve pressure on auto makers to ramp up electric-vehicle production, while imposing tariffs on foreign cars.
"I think the losers in all of this are European equities and multinationals, especially the auto manufacturers, as the probability of a trade war with the European Union is significantly higher," said Oliver Pursche, senior vice president at financial advisory Wealthspire.
Cyclical and industrial domestically-focused companies, which traditionally have small-and-mid-cap market values, are likely to outperform the mega-cap tech stocks that dominated during the Biden era for some months, said Pursche.
Honda Motor slid after the Japanese carmaker cut its annual forecasts for car sales and net profit. Honda posted a drop in first-half earnings due partly to weakness in its auto business in China.
Shares of companies that run prisons and detention facilities rallied, with GEO Group surging by more than one third and CoreCivic jumping by more than one-fifth as traders anticipated Donald Trump would increase detention of immigrants on the U.S.-Mexico border.
Rheinmetall said Chief Executive Armin Papperger will remain at the helm of the company for another five years, as the German arms maker gears up for a period of accelerated growth.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
11-06-24 1749ET
