Market Overview

Trading the Democratic National Convention

Last night, the Democrats finished their convention. With Obama's speech now in the record books, what does it mean for the markets?

For the Democrats, top contributors include high tech companies like Google (NASDAQ: GOOG) and Microsoft (NYSE: MSFT) -- companies that might benefit from the President's defense of internet privacy. Time Warner (NYSE: TWX) is also on the list of top contributors, along with a few universities, such as Harvard and the University of California. Some banks have donated to the president's campaign -- both Goldman Sachs (NYSE: GS) and Citigroup (NYSE: C) have contributed funds.

Besides companies who have contributed, the Democratic platform and Obama's past policies can give some clues to companies that may stand to benefit from a popular convention. With the president praising alternative energy sources such as wind and solar, companies such as First Solar (NASDAQ: FSLR), SunPower Corporation (NASDAQ: SPWR), and NextEra Energy (NYSE: NEE) might benefit if Obama retakes the White House, while companies with heavy interest in coal like Peabody Energy (NYSE: BTU) and Alpha Natural Resources (NYSE: ANR) could take a hit.

A successful Democratic National Convention could also be an indicator that Americans agree with some of the policies being put forth. With such a strong emphasis from the president on healthcare reform and certain healthcare related rights, it's fair to say that stocks in the sector stand to be affected. An Obama re-election almost certainly means ObamaCare will remain enacted, which bodes well for publicly held hospital systems such as Vangaurd Health Systems (NYSE: VHS), Community Health Systems (NYSE: CYH), and Universal Health Services (NYSE: UHS).

Posted-In: Politics Trading Ideas General Best of Benzinga

 

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