After opening rather calmly on the news that Donald Trump is now the President-elect, the markets are down slightly as investors remain cautious on the political changes ahead.
Amid the calm backdrop, shares of five stocks, Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA), Mylan NV (NASDAQ:MYL), Tesla Motors Inc (NASDAQ:TSLA), SolarCity Corp (NASDAQ:SCTY), and E*TRADE Financial Corp (NASDAQ:ETFC), are each on the move. Let’s take a look at why traders are buying and selling these stocks and analyze the smart money sentiment toward them.
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Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) shares have popped by 17% on the back of the news that Donald Trump has won the Presidency. Shares of Ariad previously fell sharply after Democratic senator Bernie Sanders criticized Ariad for raising the price of its leukemia drug, iclusig, to almost $200,000 a year. Although Trump has said that no one will die on the streets if he is President, traders evidently think that the President-elect will be more favorable to drug companies than Clinton would have been. That likely means more freedom for Ariad in terms of pricing for iclusig. Among the funds we track, 27 funds owned $326.28 million worth of Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA)’s stock, which accounted for 23.10% of the float on June 30, versus 26 funds and $296.02 million, respectively, on March 31.
Like Ariad, shares of Mylan NV (NASDAQ:MYL) are well in the green today on the back of the news that Trump will be the 45th President of the United States. Given that Trump has promised to roll-back regulations on business, the prospect of Department of Justice charges with teeth on various generic drug makers for alleged collusion is suddenly a lot lower. If the Department of Justice doesn’t charge the various generic drug makers, there will be a lot less uncertainty in the sector, which could lead to higher valuations. 44 top funds owned shares of Mylan NV (NASDAQ:MYL) at the end of June, down 7 funds from the previous quarter.
On the next page, we find out why Tesla Motors Inc, SolarCity Corp, and E*TRADE Financial Corp are on the move.