HAPPY WEDNESDAY TO THE STREET
Yes, Democrats swept Congress. But the bigger story for your portfolio may have been down the ballot.
Voters sided against data centers in all but one of 41 local measures across 10 states. Consequently, neoclouds like CoreWeave (CRWV), memory makers like Micron (MU), and AI infrastructure plays including Comfort Systems (FIX) and Vistra (VST) plummeted today on fears of a slower buildout.
NIMBY, meet NIMP: Not In My Portfolio.
🟩 | US stocks surged today, with the DJIA notching its best single-day gain since President Trump rolled back his steepest tariffs, as both the election results and the White House’s temperate response to them reassured the market.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
LOCKHEED, HCA, TRUMP MEDIA
📉 | Lockheed Martin (LMT) tumbled as Democrats may challenge military spending.
📈 | HCA Healthcare (HCA) rallied on hopes of reversed healthcare spending cuts.
📉 | Trump Media & Technology Group (DJT) fell to a 52-week low after sweeping GOP losses.
📈 | Clear Secure (YOU) soared more than 30% after raising its full-year free cash flow forecast.
📉 | Fidelity National Information Services (FIS) tumbled some 20% after slashing its full-year earnings outlook.
Tomorrow's Trade Idea, Today
BLUE WAVE, GREEN BIN
Stock Spotlight
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Bin There, Done That
Canada’s CIBC just released a list of top US stocks to own after the so-called Blue Tsunami. But the list is looking mighty green.
CIBC analyst Kevin Chiang recently raised his price target on environmental service solutions firm Republic Services after its Q3 beat-and-raise.
Chiang’s main takeaway from the report was that headwinds from softer solid waste and environmental solutions volumes are starting to turn.
Big Tech, Low Drama
Now the firm has named RSG one the top beneficiaries of a Democratic Congress, too, given the party’s historic tilt toward green initiatives. But it’s far from the only name on the list.
The list is built around the core assumption that investors are now staring down a defensive, regulation-heavy market. As such, it largely favors multinationals and lower-volatility names.
Think hyperscalers and software over AI picks-and-shovels. Meta (META), Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN) and Microsoft (MSFT) made the cut, alongside Visa (V), Cigna (CI) and NextEra Energy (NEE). CIBC argues a data center slowdown could help them by stretching capex over more years.
Shovels Down
On the other hand, CIBC’s Republican basket of AI names like Nvidia (NVDA), Broadcom (AVGO), and Vertiv (VRT) could lose its edge.
Specifically, with Texas Governor-elect Gina Hinojosa pushing a construction moratorium, CIBC expects AI industrials to lag near term.
Nevertheless, despite the overwhelming results mentioned in today’s intro, the bank believes most scheduled data centers will still get built. (Some projects might just need to find friendlier states.)
In other words, no politician wants the blame for handing China the AI race. But they may want the servers in someone else's zip code.
Do you own shares of Republic Services (RSG)?
OVERHEARD ON THE STREET
🏛️ House Democrats plan to push a bill to undo Trump's sweeping tariffs once they take power in January.
💵 Democrats may also use the debt ceiling as leverage to extract concessions from Trump in 2027.
🍔 McDonald's (MCD) will roll out new value bundles early next year after US traffic fell in Q3.
💊 CVS Health (CVS) will split into two public companies by early 2028, separating its retail pharmacies.
🎰 On Kalshi and Polymarket, about 90% of bets above $10K went to Democrats.
TUESDAY'S POLL RESULTS
Do you own shares of Marvell Technology (MRVL)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “Long term holding. I believe MRVL will ultimately prevail.”
🐂 Yup, I’m holding — “Could be selling for a tax loss.”
🐻 Nope, not interested — “I don't think I have any Marvel Comics either, especially NOT issue #1 of any series — other than Star Wars, which might apply since these chips could have advanced functionality in smart bombs and rockets.”
