During his campaign, president-elect Donald Trump had pledged to spend $1 trillion on infrastructure projects and improvements over the next 10 years if he was elected – and now that he has been elected, construction company stocks have risen in double-digit percentages. Engineering specialist Aecom’s stock share rose by almost 13% yesterday, material supplier Vulcan Materials Co.’s stock rose 10%, and machinery manufacturers Manitowoc Co. and Terex Corp. rose by 14% and 15%, respectively.
Analysts say that his election could facilitate the passing of a budget reconciliation bill currently under consideration, which includes major tax and health-care changes. Loren Smith of Capital Alpha Partners predicts that the president-elect will include an infrastructure component.
Uncertainty remains over the Trump administration’s specific plans, according to Doug Cameron and Bob Tita of the Wall Street Journal. So far, the only specific project Trump has identified is the Mexican border wall.