Stocks related to construction and engineering firms spiked in value last week, indicating builders around the country are feeling good about the president-elect.
The Wall Street Journal reported that Trump had promised to earmark $1 trillion for select infrastructure projects around the country over 10 years, an expectation that helped drive shares of engineering firm Aecom up 13 percent, as well as its competitor Jacobs Engineering Group by 10 percent.
Material suppliers and machinery manufacturers also saw a surge in stock prices, the Journal reported, with shares of Vulcan Materails Co. rising 10 percent and crane builder Manitowoc Go. ballooning 14 percent.
It’s still unclear what specific policies and funding strategies Trump will adopt once in office, but the Journal reported that he’s previously floated a tax credit system to help fund road, bridge and airport work. He’s also put forward that his infrastructure plan could boost the government’s $1.1 trillion worth of construction spending each year by at least 60 percent.
Outside real estate industries have had much more mixed reactions. In both New York and Los Angeles, brokers and developers expressed either shock or jubilance at the election’s outcome. For Miami, some of real estate’s most prominent figures are expressing optimism — if not outright excitement.
Source: The Real Deal