Tesla and a handful of other so-called Trump Trades led the market’s rally this week as investors hailed the Republican’s victory in the presidential election. The S&P 500 has climbed more than 4% since the start of Monday, putting it within striking distance of 6,000, and on track for its best week in about a year. The gains came as traders focused on Tuesday’s presidential election results and Thursday’s Federal Reserve interest rate decision. Excluding stocks that reported earnings this week, some of the best performers were those seen as linked to Donald Trump’s victory. Trump Trades can achieve this title by being part of sectors such as finance or energy, seen as beneficiaries of its expected abandonment of regulation, among others. CNBC searched for Trump business names that drove the index higher this week and did not release results. Here are the top performers, Friday before the bell: Tesla led the way with a 19.3% gain. The electric vehicle maker is one of Trump’s best-known businesses, given CEO Elon Musk’s advocacy of the president-elect on the campaign trail. The stock, which hit new 52-week highs this week, is now up more than 27% in 2024. This week’s rally propelled the Texas-based company’s market cap above $1 trillion dollars for the first time on Friday. Many on Wall Street expect a pullback, with the typical price target of analysts surveyed by LSEG implying shares could fall more than 29%. But Bank of America analyst John Murphy raised his price target from $265 to $350, now suggesting a 17.9% upside. Murphy cited Musk’s connection to Trump as one of the reasons for the change. He also reiterated his Buy rating, putting him in the majority on the Street. “Our analysis showed that TSLA should be relatively indifferent directly to most of the policies discussed in our recent election brief, but could benefit from a move to federal regulation of autonomous/fully autonomous vehicles (FSD) nationwide” , Murphy wrote. “In addition, it is difficult to judge how the increasingly close public relations between Elon Musk and President Trump could benefit Tesla, but this should be closely monitored.” “We believe these factors, and potentially others, should support TSLA’s growth trajectory and therefore a higher earnings multiple,” he added. TSLA 5D Mountain Tesla, 5 Day Discover, meanwhile, is an example of a financial stock that has rallied around the sector. Shares soared more than 15% this week, taking its year-to-date gain above 55%. But Wall Street is wary of the future. The average analyst expects the stock to fall about 12% and has a hold rating, according to LSEG. Baker Hughes was one of the best energy stocks this week with a jump of almost 14%. It is now on track to finish 2024 up more than 25%, which would mark its fourth consecutive winning year. Following this streak, the average analyst surveyed by LSEG sees the stock gaining just under 3% over the next year. Most analysts have issued buy ratings on the stock.
Tesla was the main “Trump Trade” of the week, alongside certain energy and financial stocks.
