How Wall Street Reacted To Donald Trump's Surprise Election Victory

The unexpected presidential election results may have forced Wall Street to abandon some of their prepared research and issue impromptu impact analysis of what a Donald Trump-led America has to offer for companies and investors.

Here is a compilation of some views coming out of Wall Street.

Morgan Stanley Is More Bearish

Morgan Stanley's bearish stance reflects the increased uncertainty, given the difficulty in predicting what would happen in the first 100 days in a new administration or what will happen before them.

Even though short-term price actions following the elections aren't always sustained, the firm said it just isn't confident near term that buying the dip is sensible. The firm recommends owning industrials, healthcare and credit card stocks among the financials. The not-so-optimistic earnings expectations, manageable inventory levels and additional infrastructure spending may boost industrial stocks.

On the healthcare sector, the firm recommends biotech stocks, given their higher growth relative to pharma companies, record cash balances and the specter of M&A. The new all Republican administration will likely be less negative on drug pricing from the multiple perspective, the firm noted.

Election Outcome Incrementally Negative For Alternative Energy Stocks

Barclays is of the view that the outcome of election is incrementally negative for the alternative energy space, given the loss of policy support. The firm also believes the EPA's Clean Power Plan currently under judicial review could be impacted by the appointment of a new Supreme Court Chief Justice. That said, the firm noted that renewable demand has always been driven by the State policy and not Federal policy.

Single Party Control Of White House And Both Houses Has Positives, Negatives

Goldman said that after several years of gridlock, potential exists for several legislative initiatives such as fiscal stimulus, corporate tax reform, reducing regulation and addressing rising healthcare costs, to see the light. However, the firm sees delay in corporate actions until policy specifics are announced.

The firm sees limited equity market response to election results. For 2016, Goldman has a year-end price target for S&P 500 of 2,100, below its current levels. The stocks market will climb slowly, in line with earnings growth in the next few years, the firm added. The firm's year-end 2017 target is 2,200 and that for 2018 is 2,300.

Negative Impact on Russian Equities

Citi believes Russian equities will suffer due to trade headwinds and heightened recession risks that support a stronger dollar and weak emerging market currencies. Higher treasury yields could hit equity valuation, the firm noted. The positives from the likely thawing of relations between Russia and the US could be counter-balanced by a weaker currency.

Sector-wise, the firm believes the election results would benefit financial companies, although a slower pace of Fed rate hike would hit their bottom line. For metals & mining stocks, lower commodity would take the sheen off the positive impact of a weaker forex.

According to Citi, oil & gas, retail and telecommunications could be the most affected, while precious metals stocks could be the beneficiaries.

The SPDR S&P 500 ETF Trust SPY closed up 1 percent at $216.44.