DALLAS — This article was originally published by our content partners at the Dallas Business Journal. You can read the original article here.
Many of Dallas-Fort Worth's largest public companies, including McKesson Corp. and Caterpillar Inc., rode the wave as the stock market soared following former President Donald Trump's election victory over Vice President Kamala Harris.
Trump, a Republican, will become the second president to serve non-consecutive terms, following Grover Cleveland, who served as president from 1885 to 1889 and 1893 to 1897. Republicans also gained control of the U.S. Senate and appeared on track to possibly keep control of the House.
Much like in 2016 following Trump's first win over Hillary Clinton, the stock market rallied. The Dow Jones Industrial Average, Nasdaq and S&P 500 all reached record highs in trading on Nov. 6 on the expectation that a Trump presidency will lead to faster economic growth and more business-friendly policies. The Dow gained more than 1,300 points, or 3.5%, as of afternoon trading. The Nasdaq rose 2.7% while the S&P 500 increased 2.2%.
The so-called "Magnificent 7" stocks — Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Facebook parent Meta Platforms and Tesla — led the way with the exception of Meta, which saw its share price decline 1%. Tesla became one of the biggest winners with its stock price gaining 14% because of the close ties between Trump and CEO Elon Musk, who has been a campaign ally. In addition, Austin-based Tesla's size gives the company an advantage in the electric vehicle market if Trump nixes rebates and tax incentives for EVs, as expected, analysts said.
Some of the biggest companies based in DFW also benefitted. DFW is home to more than 115 publicly traded companies.
Shares of Dallas-based telecom giant AT&T Inc. (NYSE: T) increased 1.4% to $22.35 in afternoon trading. Heavy equipment maker Caterpillar Inc. (NYSE: CAT), which moved its headquarters to Irving in 2022, saw its stock price rise 8.6%, to $416.39. And McKesson Corp. (NYSE: MCK), also based in Irving, rose 3.1% to $541.73.
DFW’s major airlines increased as well. Dallas-based Southwest Airlines Co.'s (NYSE: LUV) shares rose 2.4% at $31.35. Fort Worth-based American Airlines Group Inc. (Nasdaq: AAL) saw a more considerable increase with a 6.3% gain to $14.02 per share.
Financial companies were among the biggest gainers both nationally and in DFW due to expectations of a more business-friendly regulatory environment, coupled with an anticipated interest rate cut by the Federal Reserve coming on Nov. 7. Westlake-based Charles Schwab Corp. (NYSE: SCHW) shares increased 6.4% to $75.88. Texas Capital Bancshares Inc. (Nasdaq: TCBI), the Dallas-based parent company of Texas Capital Bank, saw its shares gain 8.9% to $84.01. And Dallas-based Comerica Inc.'s (NYSE: CMA) stock increased 6.2% to $69.50.
Dallas-headquartered Texas Instruments Inc. (NYSE: TXN) was among the winners with a 6.2% gain to $214.96 per share.
On the flip side, Arlington-based home builder D.R. Horton Inc. (NYSE: DHI) saw its stock price fall 4.4% to $165.88. The decline came as mortgage rates surged due to an increase in the 10-year U.S. Treasury yield following Trump's victory. Dallas-based commercial real estate titan CBRE Group Inc. also lost 4% to fall to $129.29 per share.
