“The big techs had all fallen since the surprise election of Donald Trump as the next president. Trump has championed coal, U.S. manufacturing, a get-tough policy on immigration and other issues that don’t favor Silicon Valley, a region that heavily favored his opponent, Hillary Clinton,” Krey reports. “Trump also has specifically criticized Apple and FANG company Amazon.com.”
“At the same time, the banking, drug, defense and materials sectors had all seen a lift from the Trump win, but those sectors in general were down Tuesday,” Krey reports. “Trade limits that Trump might impost could hurt tech companies, and any cutback on the H-1B visa program also would hurt, Daniel Morgan, an analyst with Synovus Trust, said in an email to clients late Monday. Major tech companies rely on the H1-B program to hire skilled workers whom they say they can’t find in the U.S., and have long sought to expand that program. In 2016, the U.S. received 236,000 applications for H1-B visas that now are capped at 65,000. Morgan, however, pointed out that some Trump campaign promises, including lower tax rates and lower taxes on cash repatriated from overseas would benefit tech companies.”
“Also, while Apple and the FANG gang have fallen since the election, all were in a downtrend at least a week before the election, when most polls said Clinton would win,” Krey reports. “(IBD’s own poll had Trump slightly ahead.)”
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MacDailyNews Take: It’s nice to see AAPL in the green!