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Trump to reveal major infrastructure package today – which stocks should you be watching?

by | 12 Feb, 2018

Nordstrom Kohl's Target Macys

Can the Republican plan fix America’s decaying infrastructure?

President Trump is set to announce a hugely anticipated infrastructure package today! This will be his next major legislative push after a big win on tax reform at the end of last year, which has seen many top U.S. companies pay their employees bonuses and announce large scale investment in America due to a more competitive tax environment. Apple was arguably the biggest story here, as the company revealed plans to bring back the majority of the $252 billion in cash it held abroad and said it would make a $350 billion investment in the U.S. over the next 5 years.

In a move that will surely appeal to Trump’s base, the infrastructure proposal he is set to discuss today will involve using $200 billion in federal funds over 10 years in order to reshape how the federal government funds roads, bridges, highways and other infrastructure. In keeping with his promise to roll back regulation and cut red tape, the Trump administration also said it will eliminate bureaucratic roadblocks to completing new projects.

As with all of Trump’s proposals, the Democrats are opposing its implementation. Nancy Pelosi said the plan “shifts the burden onto cities and states”, however the party last week called for $1 trillion in direct federal spending for schools, expanding broadband coverage and fixes for other parts of America’s infrastructure. The Democratic party has become fixated on opposing anything Trump does, but will they get on board with this new plan?

Investors should be keeping a close eye on major construction stocks today (and into the future) including Caterpillar, John Deere, Vulcan Materials, CEMEX and other heavyweights in the sector, as these companies may stand to benefit greatly from the infrastructure package. However sources indicate the plan is still in its early stages, as White House aides told reporters over the weekend: “This in no way, shape or form should be considered a take-it-or-leave-it proposal. This is the start of a negotiation – bicmaeral bipartisan negotiation – to find the best solution for infrastructure.”

Related: Lock and load for defense stocks as Trump looks to boost military spending

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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