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Fannie Mae (OTCQB:FNMA) surged more than 9% on Friday amid higher odds of a Donald Trump election win after the Presidential debate Thursday night. Investors believe that Trump is more likely to end FNMA's conservatorship than the Biden administration.
Some deal name stocks such as Matterport (MTTR), which agreed to a sale to CoStar Group (CSGP) in April, also rose on Friday amid higher odds of a Trump win and likely less pushback from antitrust regulators than under the Biden administration. Matterport rose 8.2%.
Live Nation (LYV), which was sued by the U.S. Dept. of Justice late last month in an attempt to break up the owner of TicketMaster, also rose 3.2% on Friday in the wake of the Presidential debate.
"FNMA's value has spiked by 25% over the past week, with most gains occurring after the recent Trump-Biden debate," Seeking Alpha contributor Harrison Schwartz wrote in a post on Sunday. "It is not my aim to present a political bias here, but it is a fact that Trump is far more interested in releasing Fannie Mae than Biden."
Earlier this month, CoStar (CSGP) voluntarily withdrew and refiled its HSR notification for its planned purchase of Matterport (MTTR). The waiting period under the HSR ACT is now set to expire on Wednesday.
Capri Holdings (CPRI), whose $8.5 billion sale to Tapestry (TPR) is being challenged by the Federal Trade Commission, could be another beneficiary of a Trump win, at least according to CNBC's Jim Cramer. Capri shares rose almost 2% on Friday.
"The Trump administration rarely stood in the way of mergers," Cramer said on his "Mad Money" show on CNBC on Friday. "So you would have to presume that the Kroger Albertson's deal goes through, as does the Tapestry Capri merger. I'd buy both Albertsons and Capri if you think Trump has a much better chance to win the White House."
While Cramer sees a potential Trump win as positive for Capri (CPRI), it's not clear that the current legal timetable will be on the handbag retailer's side. The trial in front of federal judge is scheduled to start on Sept. 9, about two months before the election.
Cramer also sees higher odds of Capital One's (COF) more than $35 billion purchase of Discover Financial (DFS) being approved under a Trump administration.
The deal will "most likely draw a lot less scrutiny with Trump," Cramer added.