In a observe to purchasers printed Friday, Jefferies strategists outlined what they consider are the ten most actionable insurance policies if Kamala Harris wins the presidential election, primarily based on the 2024 Democratic Platform and Harris’ latest statements.
In accordance with Jefferies, these proposals require minimal legislative motion and give attention to Tax, Rules, Industrial Coverage, Commerce, and Vitality Transition.
1) ‘Restore prime particular person revenue tax price to 39.6% on revenue above $400,000 for single filers and $450,000 for joint filers:’ The restoration of this tax price, a rollback of the 2017 Tax Cuts and Jobs Act, is predicted to affect high-income earners.
Optimistic implications might be seen for mortgage firms like Guild Holdings (GHLD) and LoanDepot (LDI), whereas luxurious retailers equivalent to Arhaus (ARHS) and Williams-Sonoma (NYSE:) might face headwinds because of decreased discretionary spending amongst prosperous customers.
2) ‘Set new guidelines and penalties to ban meals and grocery firms from increasing revenue margins greater than warranted:’ This coverage goals to fight inflation and forestall value gouging within the meals sector. Firms like Costco (NASDAQ:), Goal (TGT), and Walmart (WMT), amongst others, would possibly face challenges if stricter rules are imposed, in keeping with Jefferies.
3) ‘Proceed antitrust enforcement and cut back hidden charges:’ The Harris administration is prone to intensify antitrust enforcement throughout varied sectors, together with know-how and healthcare. A number of firms equivalent to Amazon (NASDAQ:), Adobe (NASDAQ:), Alphabet (NASDAQ:), Meta (NASDAQ:), and Pfizer (NYSE:) might be beneath scrutiny, probably affecting their M&A actions.
4) ‘Decrease drug prices by requiring pricing transparency from Pharmacy Profit Managers (PBMs):’ This initiative targets lowering drug prices by rising transparency in PBM pricing. Jefferies strategists observe that would profit generic drug producers like Teva (TEVA) however might negatively affect massive PBMs like CVS Well being (NYSE:).
5) ‘Develop AI tips through the AI Security Institute:’ The institution of AI tips is predicted to manage using AI in varied sectors. Cybersecurity corporations like Palo Alto Networks (NASDAQ:) and CrowdStrike (NASDAQ:) may benefit from elevated demand for AI-related safety options.
6) ‘Use American-made metal, lumber, drywall, concrete, and different merchandise for each federally-funded infrastructure venture:” This coverage is designed to spice up home manufacturing and will bode effectively for firms like Nucor (NYSE:) and Metal Dynamics (NASDAQ:).
7) ‘Reshore provide chains for vital supplies and applied sciences towards China:’ Efforts to cut back reliance on China for vital supplies and applied sciences might favor firms concerned in home manufacturing, equivalent to Intel (NASDAQ:) and Texas Devices (NASDAQ:).
8) ‘Restrict exports of superior applied sciences to China which might be deemed dangerous for nationwide safety:’ Restrictions on know-how exports to China might negatively affect firms like Nvidia (NASDAQ:) however profit cybersecurity corporations like CyberArk (CYBR).
9) ‘Electrify federal fleet and different heavy-duty automobiles, together with college buses and transit buses:’ The push in the direction of electrification of federal automobiles might drive demand for firms like Albemarle (NYSE:) and Alcoa (NYSE:), which provides lithium for batteries.
10) ‘Require low-carbon supplies and clear energy for use in all new federal buildings by 2030:’ This coverage is predicted to spice up demand for low-carbon supplies, benefiting firms equivalent to Alcoa, UL Options (ULS), and Linde (NYSE:).