Week In Review: How Trump's Policies Moved Stocks- Oct. 7

SUPERIOR INDUSTRIES

In a research note following the USMCA announcement, BWS Financial analyst Vahid Khorsand told investors that the agreement puts into place several rules that benefit Superior Industries (SUP) and may open up new opportunities for the company and push average revenue per unit higher. The company's North American business is focused on wheels larger than 17 inches and wheels with complex finishes, and these mostly come standard on light trucks and SUVs, which are built in Mexico and the U.S., the analyst pointed out. Superior Industries has always been under the threat of Asian wheel manufacturers providing a lower priced competing product, he contended. Other auto parts manufacturers include American Axle (AXL), Lear (LEA), Magna International (MGA), BorgWarner (BWA) and Visteon (VC).

STEEL, ALUMINUM TARIFFS

Trump's new continental trade pact does not deal with the administration's tariffs on foreign metal, according to the Wall Street Journal. The revised pact between the U.S., Canada and Mexico "will leave in place Trump administration tariffs on imported steel and aluminum," added the Journal. Stocks in the steel and aluminum group include U.S. Steel (X), AK Steel (AKS), Nucor (NUE), Steel Dynamics (STLD), Alcoa (AA), Arconic (ARNC) and Century Aluminum (CENX).  

SALE OF E15 

Commenting on indications that President Trump will ask the EPA next week to grant a waiver for the year-round sale of E15, Craig-Hallum analyst Eric Stine said he believes the chances are high that this will happen given the importance of the farm vote to midterm elections and Trump's re-election prospects. The analyst argued that this would be a strong positive for the industry and would positively impact industry demand in 2019. Stine reiterated a Buy rating on Pacific Ethanol (PEIX) and Green Plains (GPRE) shares. 
 

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