Stocks Poised To Benefit From Trump Admin's Day 1 Focus Issues

Now that Donald Trump has officially been sworn in as president, he has pledged Americans and investors won’t have to wait long to see big changes. Trump has said he will get to work on a number of campaign promises on day one in office, and those promises could have a big impact on American companies.

Cybersecurity

Trump recently appointed former New York mayor Rudy Giuliani as head of his cybersecurity task force. Trump has pledged to immediately initiate a review of “all U.S. cyber defenses and vulnerabilities, including critical infrastructure.” The review and response process could mean new government contracts on the way for cybersecurity stocks such as FireEye Inc FEYE and Palo Alto Networks Inc PANW.

Defense

In addition, Trump has pledged to begin beefing up both the military and law enforcement. “President Trump will end the defense sequester and submit a new budget to Congress outlining a plan to rebuild out military,” the White House website reads. 

Aggressive military and law enforcement spending could be good news for Northrop Grumman Corporation NOC, United Technologies Corporation UTX, Lockheed Martin Corporation LMT, TASER International, Inc. TASR and Digital Ally, Inc. DGLY.

Domestic Self-Reliance

Finally, Trump’s energy policy is squarely centered on domestic self-reliance. According to the White House website, “Sound energy policy begins with the recognition that we have vast untapped domestic energy reserves right here in America.”

Trump is particularly enthusiastic about shale oil & gas and clean coal, which is good news for stocks such as Chesapeake Energy Corporation CHK, Halliburton Company HAL and CONSOL Energy Inc. CNX.

Disclosure: The author is long CNX, and HAL.