10 Most Actionable Policy Measures If Harris Wins and Stock Implications: Jefferies by Investing.com

In a note to clients published Friday, Jefferies strategists outlined what they believe are the 10 most actionable policies if Kamala Harris wins the presidential election, based on the 2024 Democratic Platform and Harris’ recent statements.

According to Jefferies, these proposals require minimal legislative action and focus on taxation, regulation, industrial policy, trade and energy transition.

1) ‘Restore the top individual income tax rate to 39.6% for incomes above $400,000 for singles and $450,000 for joint tax returns:’ The restoration of this tax rate, a rollback of the 2017 Tax Cuts and Jobs Act, is expected to hit high-income earners.

Positive outcomes can be expected for mortgage lenders such as Guild Holdings (GHLD) and LoanDepot (LDI), while luxury retailers such as Arhaus (ARHS) and Williams-Sonoma (NYSE:) could face headwinds from slowing spending among affluent consumers.

2) ‘Introduce new rules and sanctions to prevent food and beverage companies from expanding their profit margins beyond what is justified.:’ This policy is aimed at combating inflation and preventing excessive pricing in the food sector. Companies such as Costco (NASDAQ:), Target (TGT) and Walmart (WMT), among others, could face challenges if stricter regulations are imposed, Jefferies said.

3) ‘Continue to enforce anti-monopoly measures and reduce hidden costs:’ The Harris administration is likely to step up antitrust enforcement in several sectors, including technology and healthcare. Several companies such as Amazon (NASDAQ:), Adobe (NASDAQ:), Alphabet (NASDAQ:), Meta (NASDAQ:), and Pfizer (NYSE:) could come under fire, potentially impacting its merger and acquisition activities.

4) ‘Lower drug costs by requiring price transparency from Pharmacy Benefit Managers (PBMs):’ This initiative aims to lower drug costs by increasing transparency in PBM pricing. Jefferies strategists note that this could benefit generic drugmakers like Teva (TEVA) but could negatively impact large PBMs like CVS Health (NYSE:).

5) ‘Develop AI guidelines through the AI ​​Safety Institute:’ The establishment of AI guidelines is expected to regulate the use of AI across industries. Cybersecurity companies such as Palo Alto Networks (NASDAQ:) and CrowdStrike (NASDAQ:) could benefit from the increased demand for AI-related security solutions.

6) ‘For every government-funded infrastructure project, use American-made steel, wood, drywall, concrete and other products:”This policy is intended to boost domestic production and could bode well for companies such as Nucor (NYSE:) and Steel dynamics (NASDAQ:).

7) ‘Reinstating supply chains for critical materials and technologies against China:’ Efforts to reduce reliance on China for key materials and technologies could benefit companies that manufacture domestically, such as Intel (NASDAQ:) and Texas Instruments (NASDAQ:).

8) ‘Restrict the export of advanced technologies to China that are deemed harmful to national security.:’ Restrictions on technology exports to China could negatively impact companies like Nvidia (NASDAQ:), but cybersecurity companies like CyberArk (CYBR) could benefit.

9) ‘Electrify the federal fleet of vehicles and other heavy-duty vehicles, including school buses and transit buses:’The push for electrification of federal vehicles could increase demand for companies like Albemarle (NYSE:) and Alcoa (NYSE:), which supplies lithium for batteries.

10) ‘Require all new federal buildings to use low-carbon materials and clean energy by 2030:’ This policy is expected to boost demand for low-carbon materials, which will benefit companies like Alcoa, UL Solutions (ULS) and Linde (NYSE:).