In a observe to shoppers revealed Friday, Jefferies strategists outlined what they consider are the ten most actionable insurance policies if Kamala Harris wins the presidential election, based mostly on the 2024 Democratic Platform and Harris’ latest statements.
In line with Jefferies, these proposals require minimal legislative motion and give attention to Tax, Rules, Industrial Coverage, Commerce, and Vitality Transition.
1) ‘Restore top individual income tax rate to 39.6% on income above $400,000 for single filers and $450,000 for joint filers:’ The restoration of this tax charge, a rollback of the 2017 Tax Cuts and Jobs Act, is anticipated to affect high-income earners.
Constructive implications could possibly be seen for mortgage corporations like Guild Holdings (GHLD) and LoanDepot (LDI), whereas luxurious retailers resembling Arhaus (ARHS) and Williams-Sonoma (NYSE:) may face headwinds because of decreased discretionary spending amongst prosperous shoppers.
2) ‘Set new rules and penalties to prohibit food and grocery companies from expanding profit margins more than warranted:’ This coverage goals to fight inflation and forestall worth gouging within the meals sector. Firms like Costco (NASDAQ:), Goal (TGT), and Walmart (WMT), amongst others, may face challenges if stricter laws are imposed, in keeping with Jefferies.
3) ‘Continue antitrust enforcement and reduce hidden fees:’ The Harris administration is more likely to intensify antitrust enforcement throughout numerous sectors, together with expertise and healthcare. A number of corporations resembling Amazon (NASDAQ:), Adobe (NASDAQ:), Alphabet (NASDAQ:), Meta (NASDAQ:), and Pfizer (NYSE:) could possibly be below scrutiny, probably affecting their M&A actions.
4) ‘Lower drug costs by requiring pricing transparency from Pharmacy Benefit Managers (PBMs):’ This initiative targets decreasing drug prices by rising transparency in PBM pricing. Jefferies strategists observe that would profit generic drug producers like Teva (TEVA) however may negatively affect giant PBMs like CVS Well being (NYSE:).
5) ‘Develop AI guidelines via the AI Safety Institute:’ The institution of AI tips is anticipated to manage using AI in numerous sectors. Cybersecurity companies like Palo Alto Networks (NASDAQ:) and CrowdStrike (NASDAQ:) may gain advantage from elevated demand for AI-related safety options.
6) ‘Use American-made metal, lumber, drywall, concrete, and different merchandise for each federally-funded infrastructure mission:” This coverage is designed to spice up home manufacturing and will bode effectively for corporations like Nucor (NYSE:) and Metal Dynamics (NASDAQ:).
7) ‘Reshore supply chains for critical materials and technologies against China:’ Efforts to cut back reliance on China for important supplies and applied sciences may favor corporations concerned in home manufacturing, resembling Intel (NASDAQ:) and Texas Devices (NASDAQ:).
8) ‘Limit exports of advanced technologies to China that are deemed harmful for national security:’ Restrictions on expertise exports to China may negatively affect corporations like Nvidia (NASDAQ:) however profit cybersecurity companies like CyberArk (CYBR).
9) ‘Electrify federal fleet and other heavy-duty vehicles, including school buses and transit buses:’ The push in direction of electrification of federal autos may drive demand for corporations like Albemarle (NYSE:) and Alcoa (NYSE:), which provides lithium for batteries.
10) ‘Require low-carbon materials and clean power to be used in all new federal buildings by 2030:’ This coverage is anticipated to spice up demand for low-carbon supplies, benefiting corporations resembling Alcoa, UL Options (ULS), and Linde (NYSE:).
