Stocks That Could Be In Play After The State Of The Union
Nicholas Santiago | Feb 12, 2013 12:47PM ET
President Obama's State of the Union speech is tonight and many traders and investors are already guessing about the stocks that will be in play tomorrow. On the long list of topics that president Obama will speak about will be, jobs, the economy, wars, immigration reform and obviously gun control.
Let us look at the job picture for a moment. If President Obama has a real plan for jobs that is favorable to Wall Street stocks such as Manpower Inc (MAN), Robert Half International Inc (RHI), and Mastech Holdings Inc (MHH) are just a few stocks that could be in play tomorrow.
Now the economy is a very broad topic. President Obama has been in favor of tax increases since he won reelection in November 2012. Tax loopholes are certainly on the table and could affect all of the major stock sectors. So we shall leave this topic alone until we hear the speech.
Next up, is war. Leading defense stocks such as Lockheed Martin Corporation (LMT), Northrop Grumman Corporation (NOC), Raytheon Company (RTN), and General Dynamics Corporation (GD) are just a few defense companies that have been declining sharply ahead of this speech. Should the automatic spending cuts kick in these stocks could be in for further downside, so some clarity could come from tonight's highly anticipated speech when it comes to the defense stocks.
Immigration reform is a topic that very few leaders have been able to solve. It is a very sensitive issue and many corporations could be severely affected by the news. It is probably better to wait and see what is said in the speech.
Gun control has become a front and center topic as of late. This topic could cause volatility in leading firearm manufactures such as Sturm, Ruger & Company (RGR), and Smith & Wesson Holding Corporation (SWHC). While the guns don't actually shoot people, it is crazy people that use guns to shoot people. If President Obama touches on the subject of mental illness, then all of the drug makers could be under pressure. After all, it takes a mentally ill person to commit these tragic crimes. Some drug stocks that could be in play tomorrow include Pfizer Inc (PFE), Merck & Co Inc (MRK), and many others.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.