Week In Review: How Trump's Policies Moved Stocks - Saturday, April 4

Trump "expects and hopes" Saudis, Russia agree to cut oil production by 10M barrels or "as high as 15 million barrels"

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump and his administration with this weekly recap compiled by The Fly:

1. OIL PRODUCTION CUT: On Thursday, President Trump said via Twitter that, "Just spoke to my friend MBS (Crown Prince) of Saudi Arabia, who spoke with President Putin of Russia, & I expect & hope that they will be cutting back approximately 10 Million Barrels, and maybe substantially more which, if it happens, will be GREAT for the oil & gas industry!"

Later that day, the President added that a cut ".....Could be as high as 15 Million Barrels. Good (GREAT) news for everyone!"

On Friday, Bloomberg reported that Russian President Vladimir Putin said his country is prepared to take part in oil production cuts along with Saudi Arabia and other major producers. "We are ready to reach terms with partners within the framework of OPEC+ and are ready to cooperate with the United States on this issue," Putin said on Friday during a video conference, according to Bloomberg. "I believe that it is necessary to combine efforts in order to balance the market and reduce output," he added. Russia sees a reduction in global oil production of about 10M barrels a day as possible, and is ready to participate in this "on a partnership" basis, according to Putin.

Publicly traded oil and gas companies include ExxonMobil (XOM), Chevron (CVX), Noble Energy (NBL), Cimarex Energy (XEC), Diamondback Energy (FANG), Royal Dutch Shell (RDS-A), RDS-B), Devon Energy (DVN), BP (BP), ConocoPhillips (COP) and Marathon Oil (MRO).

2. SBA RELIEF PACKAGE: The fees that banks can gather on emergency loans being offered to small businesses in the U.S due to the coronavirus pandemic stand to be in the billions, according to the Financial Times. Under the $2T relief package signed into law by Donald Trump last week, the Small Business Administration will offer the loans through banks and credit unions to cash-strapped businesses employing under 500 people, the publication added.

Meanwhile, top U.S. banks have threatened to shy away from the federal government's small-business rescue program on concerns about facing too much financial and legal risk, Pete Schroeder and David Henry of Reuters reported, citing five people with direct knowledge of industry discussions.

On Friday, the U.S. government's small business lending program for businesses affected by COVID-19 launched, though not without some concerns. Early on Friday, Bank of America (BAC) said it was able to accept online applications for the $350B small business relief program, but other big U.S. banks, including JPMorgan (JPM), Wells Fargo (WFC), and Citi (C), were not able to accept applications for the program, CNBC noted.

Later that day, Charles Gasparino of Fox Business Network reported that JPMorgan was taking online applications for small business relief.

U.S. Treasury Secretary Steven Mnuchin later weighed in via Twitter, saying that over $1.8B worth of such loans are being processed by the SBA, mostly all from community banks. In his own tweet, President Trump thanked BofA and many community banks throughout the country" for a "great job" helping small businesses.

3. 'HARD' HIT ON 3M: Shares of 3M (MMM) fell in Friday's trading after President Trump tweeted on Thursday night that the government "hit 3M hard" and that the company "will have a big price to pay" over "what they were doing with their masks."

In response to the announcements issued by the White House, 3M said that the administration requested the company cease exporting respirators made in the U.S. to the Canadian and Latin American markets, noting that ceasing all export of respirators produced in the U.S. would likely cause other countries to retaliate and do the same, meaning that the net number of respirators being made available to the U.S. would actually decrease. Yesterday, the Administration formally invoked the Defense Production Act, or DPA, to require 3M to prioritize orders from the Federal Emergency Management Agency, or FEMA, for its N95 respirators and the company said it has "been working closely with the Administration to do exactly that." In an interview on CNBC, 3M CEO Mike Roman called it "absurd" to think his company is not doing all it can.

4. 'BIG & BOLD' INFRASTRUCTURE BILL: Shares of Vulcan Materials (VMC), Eagle Materials (EXP), Granite Construction (GVA), Nucor (NUE), Quanta Services (PWR), Jacobs (J), Martin Marietta (MLM) and U.S. Concrete (USCR) were among the infrastructure levered stocks that moved higher on Tuesday after President Trump said in a tweet that, "this is the time to do our decades long awaited Infrastructure Bill. It should be VERY BIG & BOLD, Two Trillion Dollars, and be focused solely on jobs and rebuilding the once great infrastructure of our Country!" The end of his tweet made reference to "phase 4," in an apparent call for his suggested infrastructure bill to be the next round of COVID-19 stimulus approved by Congress.

5. TARIFFS ON FOREIGN GOODS: President Trump is rebuffing calls from hundreds of companies to drop tariffs he has placed on foreign goods, arguing that the tariffs do not impose costs on U.S. companies, The New York Times' Ana Swanson reported earlier this week. The White House has been considering an executive order that would defer tariff payments on some imports, but Trump says he has yet to approve the measure.

6. NEW EMISSIONS RULE: Via Twitter, President Trump said that, "My proposal to the politically correct Automobile Companies would lower the average price of a car to consumers by more than $3500, while at the same time making the cars substantially safer. Engines would run smoother. Positive impact on the environment! Foolish executives!" Publicly traded automakers include Daimler AG (DDAIF), Fiat Chrysler (FCAU), Ford (F), General Motors (GM), Honda (HMC), Nissan (NSANY), Tesla (TSLA), Toyota (TM) and Volkswagen (VWAGY).

Disclosure: None.

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