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Fast Money

Pops & Drops - Obama Edition


In this special feature find out which stocks and sectors could pop -- and which might drop -- under Obama!

OBAMA POP (stocks thought to go higher under Obama)

Natural Gas (UNG): The natural gas producers should see a big lift from Obama’s clean energy policies, and companies like Chesapeake Energy (CHK) think Obama will help introduce natural gas to transportation.

The Trade: "Look at Apache (APA) or EOG Resources (EOG)," says Joe Terranova. "I think nat gas is a great investment theme."


Research In Motion (RIMM): This firm makes Barack Obama’s beloved Blackberry. The tech-savvy 44th President Of The United States told CNBC they would have to pry the device out of his hands.

The Trade: "I think it's a difficult time for this stock," says Tim Seymour.


Fluor(FLR): The largest US engineering firm should gets a boost from Obama’s $825 billion stimulus package. However Goldman thinks that the global slowdown will offset government spending. -

The Trade: "I like Fluor (FLR) on a pull back or URS Corp. (URS) at current levels" counsels Guy Adami.


Generic Drugmakers: The generic drugmakers could get a boost from Obama; he wants faster processing of FDA applications for generics in order to bring down the cost of healthcare. This could help names like Teva  (TEVA), Novartis  (NVS), Mylan (MYL). At the same time, this could hurt big pharma companies by cutting into revenues.

The Trade: "I like Mylan Labs and Novartis," says Guy Adami.


Solar: The solar stocks are expected to benefit from Obama’s clean energy plans. His goals include doubling renewable energy production and making public buildings more energy efficient. He plans to spend $150 billion to create “green jobs” in the auto and clean-energy industries.

The Trade: "I think the play in solar is Toyota (TM)," says Joe Terranova. "They're working on a car that incorporates solar power."


Defense Stocks: The defense stocks could benefit from Obama, who has made it clear that national defense is a priority. While he aims to exit troops from Iraq, it will still be important to upgrade and replace military equipment. Barron’s reports that the US’s defense budget for fiscal 2009 is close to $700 billion, more than the rest of the world’s military spending combined.

The Trade: "I'd be careful in the space," says Zach Karabell. "Really high end consolidated weapons systems could come under pressure. General Dynamics(GD) could have some problems."


U.S. Steel (X): Obama’s infrastructure based stimulus spending could be a big boost to the US Steel industry, especially with $10 billion devoted to rail and mass transit projects.  The beaten down steel sector is banking on the public works plan, especially if Obama emphasizes buying American.

The Trade: "US Steel could rise short term," says Zach Karabell, "but any steel maker in the developed world that's going to compete with low-end steel in China and elsewhere could have troubles."


S&P 500 ETF (SPY): In recent times the stock market has performed better with a Democrat in the White House. And from what you’re telling us, that streak should continue. When Fast Money asked “will the Dow be higher 4 years from now,” in our daily poll question 71% of you replies, “yes.”

The Trade: "Interesting," says Tim Seymour.


OBAMA DROP (stocks thought to go lower under Obama)

Tobacco: Although Obama may be known to smoke once in a while, he’s expected to be tough on tobacco, looking to regulate cigarettes, raising taxes and ratifying an international anti-tobacco treaty.

The Trade: "I see some pressure on Altria (MO),"says Tim Seymour, "however it's outperformed this year."


Coal Utilities: The coal utilities such has Dynegy (DYN) will most likely be hurt from Obama’s policies, as these companies could spend billions complying with new regulations on carbon emissions. Obama has said “No business will be allowed to emit any greenhouse gases for free,” and has proposed a “cap and trade” program, making it expensive for the coal companies with high gas emissions

The Trade: We didn't have time to get to this one on TV, sorry.

Stock Pops & Drops

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Trader disclosure: On Jan 19, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Karabell Owns (AAPL), (GOOG), (JPM), (TSO), (TC); Seymour Owns (AAPL), (BAC); Seygem Asset Management Owns (COP)

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Terranova Works For (VRTS): Virtus Investment Partners Owns (XOM), (CSX), (FLR), (COP), (VLO), (X)

Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.: Virtus Investment Partners Owns More Than 1% Of  (ABD), (ARE), (BIG), (DLR), (EPR), (EXR), (IGE), (SLB), (MAC), (DBC), (DBV), (SKT), (UA), (CLB)

Virtus Investment Partners Owns More Than 1% Of  Seagate Tax Refund Rights: Virtus Investment Partners Owns More Than 1% Of  Corporate Office Properties Trust SBI MD: Virtus Investment Partners Owns More Than 1% Of  Goldman Sachs Financial Square Fund – Money Market Fund