President Obama’s State of the Union speech is tonight and many traders and investors are already guessing about the stocks that will be in play tomorrow. On the long list of topics that president Obama will speak about will be jobs, the economy, wars, immigration reform and obviously gun control.
Let us look at the job picture for a moment. If President Obama has a real plan for jobs that is favorable to Wall Street stocks such as Manpower Inc (NYSE:MAN), Robert Half International Inc (NYSE:RHI), and Mastech Holdings Inc (NYSEAMEX:MHH) are just a few stocks that could be in play tomorrow.
Now the economy is a very broad topic. President Obama has been in favor of tax increases since he won reelection in November 2012. Tax loopholes are certainly on the table and could affect all of the major stock sectors. So we shall leave this topic alone until we hear the speech.
Next up, is war. Leading defense stocks such as Lockheed Martin Corporation (NYSE:LMT), Northrop Grumman Corporation (NYSE:NOC), Raytheon Company (NYSE:RTN), and General Dynamics Corporation (NYSE:GD) are just a few defense companies that have been declining sharply ahead of this speech. Should the automatic spending cuts kick in these stocks could be in for further downside, so some clarity could come from tonight’s highly anticipated speech when it comes to the defense stocks.
Immigration reform is a topic that very few leaders have been able to solve. It is a very sensitive issue and many corporations could be severely affected by the news. It is probably better to wait and see what is said in the speech.
Gun control has become a front and center topic as of late. This topic could cause volatility in leading firearm manufactures such as Sturm, Ruger & Company (NYSE:RGR), and Smith & Wesson Holding Corporation (NASDAQ:SWHC). While the guns don’t actually shoot people, it is crazy people that use guns to shoot people. If President Obama touches on the subject of mental illness then all of the drug makers could be under pressure. After all, it takes a mentally ill person to commit these tragic crimes. Some drug stocks that could be in play tomorrow include Pfizer Inc (NYSE:PFE), Merck & Co Inc (NYSE:MRK), and many others.