Market Overview

Trade Ideas From The State Of The Union (CSX, FSLR, APOL, GVA, FNSR)

President Obama addressed a wide array of issues in his State of the Union address last night, and now investors are clamoring for ways to profit off the President's speech.

One of the major beneficiaries from last night's speech was high speed rail, which should benefit the rail roads like CSX (NYSE: CSX), Norfolk Southern (NYSE: NSC), Union Pacific (NYSE: UNP) and Kansas City Southern (NYSE: KSU).

Michael Ward, CEO of CSX was on TV yesterday, and said that high speed rail shouldn't interfere with with goods moving lines. Either way, this will benefit the rail companies, and could benefit companies like Caterpillar (NYSE: CAT), which makes rail road equipment as well.

With regards to renewable energy, President Obama mentioned all the of the sources of renewables: wind, solar, nuclear, and biofuels. President Obama said that he wants 80% of U.S. energy to come from renewables by 2035, which could benefit solar companies, such as First Solar (NASDAQ: FSLR) and wind turbine parts makers like Otter Tail (NASDAQ: OTTR) and General Electric (NYSE: GE).

Obama also went on to discuss that American education is not where it needs to be, and he pushed his 'Race to the Top' plan which will replace 'No Child Left Behind'. He wants the tuition tax credit to be made permanent, as well as keeping foreign students who study at our universities, instead of letting them leave after we educate them. The for profit education, which has been beaten down recently, should see a little bit of a boost on this news, at least in the short term. Longer term, it's still not known where Washington lies, but I suspect it won't be nearly as bad as everyone thinks, and names like Corinthian Colleges (NASDAQ: COCO) and Apollo Group (NASDAQ: APOL) should benefit over time.

The President also focused on the infrastructure of the country, both transportation and information technology. Ideas in this sector are the usual ones that help build and support our roads and bridges, like Cemex (NYSE: CX), U.S. Steel (NYSE: X), Granite Construction (NYSE: GVA), and Jacobs Engineering (NYSE: JEC).

The President also accentuated the need for high speed wireless infrastructure, which he said would be primarily driven by the private sector, and companies like Alcatel-Lucent (NYSE: ALU), Finisar Corporation (NASDAQ: FNSR) would benefit.

Disclosure: no position in names mentioned

Posted-In: President Obama State of the UnionLong Ideas Trading Ideas Best of Benzinga

 

Most Popular

Related Articles (APOL + ALU)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters