It has now been one full month since Donald J. Trump was inaugurated as President, and you may recall that the general consensus after the big post-election rally was that investors should “buy the Election and sell the Inauguration.” Even though the ‘buy’ part of the strategy was never mentioned until early January – well after the market rallied in November – the consensus trade was that all of the gains pre-Inauguration were being borrowed from the future and that investors would sell the news after Trump was sworn in. It has only been a month, but so far the strategy hasn’t quite panned out. Since Inauguration Day, the S&P 500 is up 3.3%, while the average performance of the 500 stocks in the index is even better at +3.6%.
In the tables below, we provide a brief summary of the S&P 500’s biggest winners and losers during the first full month under President Trump. The first table below lists the 25 biggest winners over the last month. Leading the way higher is Arconic (ARNC), which thanks to an activist investor, is up over 40%. Behind ARNC, Seagate Technology (STX) is the only other stock up more than 20%. Other notable names on the list include Apple (AAPL) and Cisco (CSCO). In terms of sector representation, it was surprising to see relatively few stocks from the Financials (3) and Industrials (4) sectors as they have been considered to be among the biggest winners under a President Trump. On the flipside, the sectors with the greatest representation are Technology and Health Care, each with six stocks. Both of these sectors did poorly on a relative basis to close out 2016, but investors have started coming around to them regardless of the President’s not-so-positive-relationship with the sectors.
To the downside, 117 stocks in the S&P 500 are down since the Inauguration, and below we list the 25 worst performers. Under Armour (UAA) has been the worst stock by far, losing close to a quarter of its value. Behind UAA, eight other stocks are down 10%, including other consumer names like Mattel (MAT), Ralph Lauren (RL), and H&R Block (HRB). In fact, Consumer Discretionary stocks have been especially hard hit under President Trump with eight of the worst 25 performers. Likewise, even though he has promised to decrease regulation and ease drilling restrictions, eight stocks from the Energy sector also made the list of 25 biggest losers. Perhaps there will be just too much oil coming out of the ground. One sector conspicuously absent from the list of biggest losers is Financials. While they may not be ripping under President Trump, Financials also haven’t been under pressure by any stretch.