Yemen's Houthi rebels have claimed responsibility for the attacks, which created a huge fire at a processor essential to global energy supplies.Politicsread more
Oil prices are expected to jump as much as $10 per barrel after a coordinated drone strike hit Saudi Arabia's largest oil field, forcing the kingdom to cut its oil output in...Marketsread more
Trusii's hydrogen water machines were supposed to help users with their health problems, but customers claim the company is involved in a giant scam.Technologyread more
The decoupling of the world's two weightiest economies seems as inescapable as its extent and global impact remains incalculable.Politicsread more
The trucking industry is worth hundreds of billions of dollars per year. Uber is going after this market with Uber Freight, an online platform that matches truckers with...Technologyread more
BlackBerry has reinvented itself to become a leader in securing mobile communications and in embedded communications. Next year it plans to roll out new products. CEO John...Evolveread more
Trailers have become a cult phenomenon. Even short teasers that reveal little about the plot of the upcoming film are headline-worthy. Blogs and forums have become devoted...Entertainmentread more
Thanks to the performance of Beyond Meat, investors who focus on venture-backed tech IPOs have done well this year despite some notable disappointments.Technologyread more
Software company Intuit, maker of tax helper TurboTax, is in its eleventh year of stock gains and up 36% this year.Investingread more
CNBC did a deep dive through the most recent Wall Street research to find stocks with upside potential.Marketsread more
The benchmark 10-year Treasury note yield tested 1.5% in late August and early September, bouncing off that level and most recently trading around 1.8%. However, another...Marketsread more
Republican candidate Donald Trump is catching up in the polls, and stocks that would favor a Trump victory are showing the same thing.
They are no longer lagging as much as they were just a few weeks ago.
"Stock sectors that reflect a Clinton victory have been under-performing," said Dan Clifton, head of policy research at Strategas.
A CNN/ORC poll Tuesday showed Trump leading Democrat Hillary Clinton by 45 percent to 43 percent. "That's important because she was winning by 8 in that poll after the Democratic convention," said Clifton.
(In the charts below, "LHS" and "RHS" indicate left-hand side and right-hand side.)
Clifton created a portfolio for each party, to serve as a sort of diagnostic tool for the election. The Trump portfolio is heavy on defense, energy and financial stocks. He structured a portfolio for a win by Democrat Hillary Clinton with quite a few infrastructure names and healthcare stocks that would benefit from continuation of the Affordable Care Act.
"The infrastructure stocks which have been up a lot all year have started to underperform. That's a proxy for Hillary," said Clifton.
Some of the stocks that would favor Clinton, like infrastructure, or the financials for Trump, began signaling a change around Aug. 15 when the S&P 500 peaked at its all-time high. That was around the time that Trump changed his election team and strategy, Clifton noted.
"The Democrat portfolio is outperforming by 3 percent year-to-date, so it's saying Hillary has a slight advantage, but the portfolio had been up by 10 percent," he said.
An earlier turning point came on July 5, when the FBI released its findings on Clinton's emails. Since that time, Clifton's Republican portfolio began to outperform.
Trump is associated with infrastructure as well, but Clifton said that if he wins, it could mean a Republican sweep and the GOP is more concerned about immediately tackling tax reform, so a smaller infrastructure plan is likely under Trump.
Clinton is most closely aligned with health care and biotech stocks, and the biotechs have seesawed with Hillary rising and falling in the polls, he said. But both candidates' portfolios include health care names.
The Clinton portfolio contained Mylan because of its cost-saving generic drugs. But Mylan stock was crushed late last month because of Clinton's criticism about its pricing of the live-saving allergy medicine EpiPen. The Trump portfolio, on the other hand, holds Amgen, Celgene, and Pfizer. A Republican win could take pressure off the concerns about drug price regulations, and Pfizer also would benefit if there is a Republican win and a tax deal on repatriation of profits.
"As her probability of being elected goes up, biotech stocks underperform the S&P 500. What's been happening as her probability goes up, biotechs go down, and as her probability goes down, biotech goes up. It's been a roller coaster ride throughout the election," Clifton said.
Clifton assigned Trump a broader group of diversified financials, like regional banks, Morgan Stanley and AIG. He did not include other major banks, which both parties have said could be broken up.
The financials have done well, helping the Republican portfolio. "You're seeing those stocks really catching a bid. A lot of this is anti-Hillary stuff. She's talking about a financial transaction tax," he said. The Democrat's financial names include insurers AON, Marsh and McLennan, Berkshire Hathaway and Welltower, a health care REIT.
He said Trump is more pro-defense, though both candidates would be good for the sector.
The Republican portfolio:
Housing – Toll Brothers
For-Profit Education – Devry
Minimum Wage – Chipotle
Telecom – AT&T
The Democratic portfolio:
A Clinton victory is 86 percent correlated to the S&P 500, and a Clinton win represents the status quo, according to Clifton. The Clinton portfolio is long the S&P with a holding in S&P 500 SPDR ETF SPY.
Defense/Export Bank – Boeing, L-3 Communications
Consumer Discretionary - Dollar General
Consumer Staples – Tyson Foods
Railroads – Kansas City Southern