Monday’s signing of President Joe Biden’s $1.2 trillion infrastructure bill has stock pickers grabbing their crystal balls.
Notably the bill calls for among other items $110 billion of investment in roads, bridges and major infrastructure, $65 billion for rebuilding the energy grid, $65 billion in broadband, $55 billion for water infrastructure and $15 billion for accelerating the transition to electric vehicles.
InvestorPlace pundit Eric Fry foresees copper prices surging on the back of the bill, noting that 43% of all mined copper goes to building construction and 20% to transportation equipment.
Philip Ng of Jefferies’ notes that construction material stocks are good bets with so much new building in the offing with heavy materials company Martin Marietta Materials Inc. in particular seen as a winner by analysts polled by research company FactSet.
Investor portal the Motley Fool predicts surges in stock of steel company Cleveland-Cliffs, electricity utility Xcel Energy and construction equipment rental company United Rentals as they benefit from the increased government spending.
Monday, the day of the signing of the bill, the Dow Jones Industrial Average dipped slightly by 0.03%.