How Have US Stocks Reacted After Trump’s Win?

Certain stocks have been disappointed by Trump’s election-related gains; Tesla has lost 4.5% of its value since Election Day. Elon Musk’s business has grown to be a close buddy of Trump. Republicans may not instantly carry out their campaign pledges, even if they control the White House, Senate, and House of Representatives. Instead, the final legislation will probably be a scaled-down version of the initial plans.

After revealing a higher-than-expected earnings for the most recent quarter, The Walt Disney Co. saw a 7.3% increase in value. Following the luxury apparel company’s announcement that it was ending its merger with Capri, another owner of a luxury brand, Tapestry’s shares increased by 12.8%. Among the difficulties facing the partnership was a lawsuit filed by the Federal Trade Commission to stop the transaction on antitrust grounds.

The bond market’s fluctuating yields after the most recent inflation report also had an impact on stocks. Prices paid at the wholesale level in the United States increased 2.4% in October compared to the same month last year, which was faster than the 1.9% inflation rate in September. According to a different report, fewer Americans applied for unemployment insurance last week, indicating that the labor market in the country is still strong. Following the claims, Treasury yields first surged but then retreated; late Wednesday, the yield on the 10-year Treasury fell from 4.45% to 4.39%.

Cardinal Health, Inc. (CAH) is a $30.3 billion healthcare services and products firm. Although CAH stock has increased 19.4% over the last 52 weeks, its shares have outperformed the overall market. However, CAH stock has outperformed the Health Care Select Sector SPDR Fund, which has increased by 7.7% year-to-date and 15.6% over the last 52 weeks.

Analysts predict that CAH’s EPS will increase by almost 4% year over year to $7.83 for the current fiscal year, which ends in June 2025. Given that it has outperformed the consensus projections for the last four quarters, the company’s earnings surprise history is encouraging. The consensus rating among the 15 analysts that follow the stock is “Moderate Buy.”

As Nvidia (NVDA 1.00%) prepares for its next earnings announcement on November 20, its shares are nearing all-time highs. With a “buy” rating and a price target of $178, analyst Timm Schulze-Melander began covering the stock this week, suggesting a 21% increase above the share price of $147 as of this writing. Investors should hold off on purchasing Nvidia stock until after the forthcoming report, though.

There are indications that Nvidia is still in the early stages of fulfilling the need for data center technology that supports workloads related to artificial intelligence (AI). Nvidia reported a 122% year-over-year gain in overall sales, which is remarkable for a top semiconductor company, even though its second-quarter revenue growth slowed from the previous quarter. Modeling a company’s short-term financial success is typically more accurate than forecasting changes in stock prices.

According to Yahoo Finance, the consensus analyst estimate projects that Nvidia’s sales will increase by 125% this year and 44% the next year. Analysts predict that Nvidia’s profit margin will remain stable because to the strong demand for its data center processors, and the company’s earnings will increase 44% to $4.12 per share in the upcoming year.

It is not advised to invest $1,000 in Nvidia at this time because it was not one of the top ten stocks recommended by the Motley Fool Stock Advisor. Compared to the S&P 500’s 176% return, the top 10 stocks in Stock Advisor’s portfolio have a market-crushing 891% average return.

As the market’s significant surge after Donald Trump’s election begins to moderate, U.S. stocks are moving lower Thursday. In afternoon trading, the Dow Jones Industrial Average fell 112 points, or 0.3%, while the S&P 500 fell 0.3%. Despite reporting a higher-than-expected profit for the most recent quarter, the market was nevertheless affected by Cisco Systems’ 2.3% decline.

Skeptics claim that the stock market has become excessively costly since it has been increasing more quickly than business profits. After informing U.S. regulators that it requires further time to submit its financial results for the most recent quarter, which concluded in September, Super Micro Computer fell 10.5%, resulting in the largest loss in the S&P 500.