Election 2024: Arizona residents split on Donald Trump’s victory
Arizona remains too close to call after Donald Trump won the White House. Here is what its residents have to say about it.
Corrections & Clarifications: A previous version of this article contained incorrect information about action taken against Grand Canyon Education.
Donald Trump’s presidential election victory ignited a stock market rally and could shift the prospects of many companies with a sizable Arizona footprint, from banks and supermarkets to those with a stake in green energy production.
Investors greeted the election news by pushing up the widely followed Dow Jones Industrial Average to a record-high close of 43,730, up 1,508 points for the day or 3.5%.
Few sectors fared better during the day than banks, which have complained of heavy-handed regulations under the Biden administration. JPMorgan Chase, the banking giant with the largest deposit share in Arizona, enjoyed a surge of more than 11% on Nov. 6, while two rivals, Wells Fargo and Bank of America, vaulted about 13% and 8%, respectively. Jamie Dimon, CEO of JPMorgan Case, recently called on fellow banking executives to fight back against regulations that he called harmful.
Phoenix-based Western Alliance Bancorp, the largest banking company headquartered in Arizona, fared slightly better, up nearly 14% for the day. Combined, those four banks account for nearly 76% of all deposits in the state.
“Expect the Trump administration to seek to roll back federal regulation, including efforts to ease regulatory burdens on the oil and gas industry and the financials sector,” said investment firm T. Rowe Price in a post-election commentary.
Utilities, supermarkets could face less regulation
Another winner was Phoenix-based Pinnacle West Capital, parent of electric-utility APS, which jumped nearly 4%. That was a larger gain than power utilities logged overall, possibly boosted by prospects of a Republican sweep of three vacant seats on the Arizona Corporation Commission, which regulates the company and the rates it charges customers.
Including two incumbents who didn’t need to stand for reelection, all five seats on the regulatory panel likely could be occupied by Republicans starting in 2025. Voters rejected claims by three main Democratic challengers that Arizona needed to adopt solar electricity at a faster pace.
Many Arizona grocery shoppers have been following the proposed $24.6 billion purchase of the Albertsons-Safeway chain by Kroger, which operates Fry’s Food Stores in Arizona. The merger has been stalled by lawsuits, including one filed by the Biden Administration, but a Trump administration could look more favorably on the deal, which both companies insist is needed to help them compete with nonunionized rivals such as Walmart Stores, Amazon.com, Costco and Target.
Kroger earlier said it planned to sell about 100 Arizona stores to C&S Wholesale Grocers to satisfy regulators’ concerns about market concentration in the state in hopes of consummating the merger.
Kroger stock rose about 4% and Albertsons gained nearly 2%.
Rallies for education, prison stocks
Other big winners, among larger Arizona-based corporations, included Phoenix-based trucking giant Knight-Swift Transporation (up 7% for the day), Phoenix cable-television company Cable One (up 11%) and Align Technology, a provider of clear dental aligners headquartered in Tempe (up 6%). Health care stocks had a mixed showing on the day after the election. Few large publicly owned health corporations are headquartered in Arizona.
Phoenix-based Grand Canyon Education, an independent education-services provider, surged nearly 15% for the day. The company provides technology, academic, communications, marketing and other services to Grand Canyon University and 22 other universities.
Companies that operate prisons also had a big day on Wall Street, with investors anticipating tighter border security and law enforcement generally. GEO Group and CoreCivic help run the Central Arizona Correctional Complex in Florence and other prisons here. Their stock prices vaulted roughly 42% and 29%, respectively, for the day.
Solar, some semiconductor stocks get hit
But the election results brought some stock-market losers too, with investors reacting to the possibility that Trump might scale back support for green energy. The shares of Tempe-based First Solar, which makes solar panels and related equipment, tumbled 10%. Shares of Lucid Group, a California-based maker of luxury electric vehicles with a state-of-the-art factory in Casa Grande, slipped about 5%.
Arizona’s tech stocks were mixed for the day, with Rogers Corp., a specialty materials company, rising more than 8%, taser-maker Axon gaining 4% and ON Semiconductor advancing 2%. But Microchip Technology, the most valuable chipmaker headquartered in Arizona, stumbled 2%.
Shares of Freeport-McMoRan, a world-class copper producer and one of the most valuable Arizona-based corporations, was flat for the day.
Taiwan Semiconductor Manufacturing Co., a dominant industry player that is building a $65 billion chipmaking complex in north Phoenix, finished down around 2% after dropping 5% earlier in the day.
Trump has criticized “rich” semiconductor manufacturers and recently slammed the CHIPS and Science Act, a hallmark piece of legislation under President Biden, who visited both the TSMC Phoenix campus and an Intel Corp. complex in Chandler.
Biden’s Commerce Department earlier announced preliminary grants of $8.5 billion for Intel and $6.6 billion for TSMC, along with $400 million for Amkor Technology to build a semiconductor testing/packaging facility in Peoria. Shares of Tempe-based Amkor rose 4% for the day, and Intel was up around 7%. None of those companies has received CHIPS Act funding yet.
Despite the big one-day rally, Dave Sekera, a senior market strategist with Morningstar, cautioned investors not to get too carried away about the post-election “Trump bump.” He warned that potential policy changes often get watered down before they are enacted. Â
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Publish date : 2024-11-07 00:55:00
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