WASHINGTON — Wall Street’s Wednesday reaction to Donald Trump’s presidential victory was to rally despite a huge despite a huge global selloff in equities overnight, and there are sectors that are very likely to benefit, at least short term, from the prospects of a Trump presidency.
D.C.’s huge government defense contracting industry is at the head of the list.
On the campaign trial, Trump did plenty of saber-rattling as he laid out his plans for combating terrorism around the world. And any increase in military responses would require more fighters, tanks, subs and missiles.
Bethesda, Maryland-based Lockheed Martin Corp., the stock of which had already gained more than 10 percent in 2016, jumped 6 percent in Wednesday morning trading. Drone-maker Northrop Grumman, based in Falls Church, Virginia, was up 4 percent Wednesday morning, bringing its year-to-date return to 27 percent.
Falls Church-based General Dynamics, maker of the Abrams tank, jumped 5 percent Wednesday morning. Its shares are up 18 percent so far this year.
Drug companies and biotechnology companies also stand to benefit from a Trump presidency. The highly-regulated pharmaceutical industries could have faced stiffer drug pricing reform and stiffer research overnight under a Clinton administration.
Rockville, Maryland-based Vanda Pharmaceuticals, which makes drugs used for sleeping disorders and schizophrenia, was up 7 percent in Wednesday trading. It has gained more than 74 percent this year. Gaithersburg, Maryland-based Emergent BioSolutions, currently developing a Zika virus vaccine, was up 2 percent in morning trading. Silver Spring, Maryland-based Untied Therapeutics, developing treatments for vascular diseases, was up 4 percent.
Banks and financials may get a breather early on in a Trump administration, with tougher, Democratically-sponsored bank regulations losing support, not just with a Trump White House but with both houses of Congress remaining majority Republican.
The biggest locally-based financial company is McLean, Virginia-based Capital One Financial. Its stock was up 3 percent Wednesday morning.
Smaller, community-based banks also were getting a post Trump bump.
Bethesda-based Eagle Bank was up more than 1 percent. McLean-based Cardinal Financial was up close to 3 percent in morning trading. United Bankshares, with dual headquarters in D.C. and Charleston, West Virginia, was up 2 1/2 percent.