Investors are betting that drug and coal stocks will benefit under a Donald Trump administration but not clean energy and hospital stocks. Fred Katayama reports.
Investors placed their early bets on sectors they feel will benefit from a Donald Trump administration after the billionaire's election victory. Drug stocks like Pfizer and Allergan were the day's biggest winners. Trump's rival, Hillary Clinton, had been threatening to curb price hikes by drugmakers. CFRA chief investment strategist Sam Stovall: SOUNDBITE: SAM STOVALL, CHIEF INVESTMENT STRATEGIST, CFRA, (ENGLISH) SAYING: "The reason for the rally is because of the lack of price controls that will probably be placed on a pharmaceuticals and the biotech stocks because the Republicans rather than the Democrats won. It's not necessarily something that the Republicans will be doing. But when you also take a look at earnings growth expectations combined with below market valuations, this sector looks pretty cheap." Other gainers included coal stocks such as Cloud Peak Energy and Westmoreland Coal. Trump has vowed to revive that sector and scrap regulations. On the flip side, investors gave the thumbs down to solar energy and hospital stocks. Trump had pledged to repeal the President's health care law that expanded access to health insurance coverage. One sector that stands to benefit regardless of who had won last night: infrastructure. It's one segment in which both candidates agreed billions more must be spent to build new roads and bridges.