New York - Donald
Trump’s still the most interesting man in the world for US stock investors.
A Twitter post
from the President-elect signalling support for beefing up America’s nuclear
arsenal sent shares in uranium miners surging. Earlier, his team’s statement
that Carl Icahn would be named special adviser to help overhaul federal
regulations sparked a rally in merchant refiners and sent shares lower in
industries the activist investor has publicly rebuked.
The sharp share
fluctuations highlight the market-moving ability of both Trump’s Twitter
account and his cabinet appointments. Since his election victory in November,
he’s rattled industries from aerospace to health-care, using his social media
presence and business-friendly appointments to create and erase billions of
dollars of market value at a moment’s notice.
Trump’s call for
expanded nuclear capability erased a loss of 2 percent in an exchange-traded
fund tracking a basket of uranium miners. Uranium Energy climbed as much
as 14 percent intraday to lead gains in the fund, while Mega Uranium and
Laramide Resources are on pace to gain more than 3.7 percent.
It was a
familiar story for equity investors, who earlier this month saw Trump spur
selling in the aerospace industry with a tweet calling the cost of Boeing Co.’s
contract to build a new Air Force One exorbitant. Lockheed Martin Corp. and the
defense sector were dealt a blow less than a week later when Trump called costs
of the military’s F-35 fighter jet program “out of control.”
His appointment
for the role of special regulatory adviser had a similarly widespread effect on
stocks as Icahn-controlled CVR Energy Inc. surged 12 percent, while CVR
Refining climbed 11 percent. One of Icahn’s major regulatory pushes has been to
relieve the burden on merchant refiners such as CVR, according to a report from
Height Securities.
The
billionaire’s own Icahn Enterprises jumped the most in six weeks.
Murphy USA and
Casey’s General Stores, which have benefited from selling renewable
identification numbers, slipped more than 2.1 percent on concerns that Icahn’s
past criticisms of refinery regulations will translate to higher costs for the
alternative energy companies.
Goldman Sachs
Group shares have surged 32 percent, touching the highest since 2007 this week,
to lead financial shares higher on speculation Trump will roll back industry
regulations. Goldman alumni dot the billionaire’s inner circle, with his picks
for Treasury secretary, economic adviser and chief strategist all having ties
to the investment bank.
BLOOMBERG