Coal And Solar Stocks Split Directions Following Clinton's Defeat

The defeat of Hillary Clinton to Donald Trump in the 2016 U.S. presidential election has led to contrasting reactions within the energy sector, particularly regarding coal and solar stocks.

Trump's Energy Plans

The Trump win is seen as a boost to coal producers, as he intends to revive the coal industry, while solar stocks are falling due to the fact that Trump is an opponent of the current Clean Power Plan.

Among others, Trump plans to unleash America’s $50 trillion in untapped shale, oil and natural gas reserves, plus hundreds of years in clean coal reserves.

Further, Trump favors open onshore and offshore leasing of federal lands, eliminating moratorium on coal leasing and open shale energy deposits.

Trump also intends to encourage the use of natural gas and other American energy resources. He believes these actions will cut emissions as well as bring energy prices down.

With a Trump win, policies of Clinton — including the Clean Energy Challenge, 140GW solar installation target — will now fail to materialize. Further, Clinton’s campaign was expected to provide up to $62 billion in additional subsidies for solar.

Further, Trump intends to cut federal spending on climate change by up to $100 billion over eight years by eliminating domestic and international climate programs including the Paris Climate deal.

Stocks On The Move

The following coal-related stocks are on the rise after Trump's win:

• Alliance Resource Partners, L.P. ARLP advanced 4.17 percent to $25.00.
• Arch Coal, Inc. Class A ARCH climbed 5.48 percent to $75.44.
• Cloud Peak Energy Inc. CLD gained 18.51 percent to $7.81.
• CONSOL Energy Inc. CNX climbed 8.19 percent to $18.36.
• Freeport-McMoRan Inc FCX rose 7.61 percent to $13.01.
• Peabody Energy Corporation BTUUQ surged 63.51 percent to $13.98.
• Rio Tinto plc (ADR) RIO was up 4.76 percent to $37.42.
• Westmoreland Coal Company WLB climbed 8.24 percent to $13.80.

On the other hand, the following solar stocks were in the red post-election results:

• Canadian Solar Inc. CSIQ lost 9 percent to $12.09.
• First Solar, Inc. FSLR fell 5.73 percent to $31.57.
• JinkoSolar Holding Co., Ltd. JKS plunged 7.9 percent to $14.18.
• SolarCity Corp SCTY slipped 4.88 percent to $19.83.
• SunPower Corporation SPWR plunged 13.96 percent to $6.32.
• Sunrun Inc RUN fell 7.62 percent to $4.61.
• Trina Solar Limited (ADR) TSL dropped 2.34 percent to $10.22.
• Vivint Solar Inc VSLR declined 6.98 percent to $3.00.