President Joe Biden hosted his first State of the Union Address Tuesday in front of members of Congress. In the speech, Biden discussed several items that he has already helped pass along with more future initiatives.
Here is a look at stocks to watch after the State of the Union address.
Pharmaceutical Companies: In 2016, then- Vice President Biden launched the Cancer Moonshot program the help boost spending on medical research to take on various types of cancer.
In 2022, Biden announced plans to boost spending and reduce the death rate from cancer by 50% over the next 25 years.
The Partnership for Accelerating Cancer Therapies includes 11 companies working to boost treatments for various types of cancers. The companies are AbbVie Inc (NYSE:ABBV), Amgen Inc (NASDAQ:AMGN), Boehringer-Ingelheim Pharma, Bristol-Myers Squibb Co (NYSE:BMY), Celgene (owned by Bristol-Myers Squibb), Genetech (owned by Roche), Gilead Sciences (NASDAQ:GILD), GlaxoSmithKline (NYSE:GSK), Janssen Research (owned by Johnson & Johnson (NYSE: JNJ)), Novartis (NYSE:NVS), Sanofi SA (NASDAQ:SNY) and Pfizer Inc (NYSE:PFE).
Biden announced his Unity Agenda, which included ending cancer as we know it as one of four bipartisan issues that can be passed.
Social Media: Biden took aim at social media platforms and the data collected from children.
“It’s time to strengthen privacy protections, ban targeted advertising to children, and demand tech companies stop collecting personal data on our children.”
The comment could be aimed at companies like Meta Platforms (NASDAQ:FB) and Twitter Inc (NYSE:TWTR). A push to change data collection and advertising could hurt advertising revenue down the road for the companies.
Gun Stocks: Biden used the State of the Union address to address gun control. Biden called on Congress to pass universal background checks, ban assault weapons and repeal a law that protects gun manufacturers from being sued.
The comments could be good and bad for gun stocks as any hint of banning weapons could lead to increased sales, while the potential right to sue gun manufacturers could also increase the need for more insurance paid by gun companies and the potential to pay out millions in lawsuit settlements.
Gun stocks include Smith & Wesson Brands (NASDAQ:SWBI), Vista Outdoor (NYSE:VSTO) and Sturm, Ruger & Co (NYSE:RGR). Increased gun sales could also boost retailers that sell them, such as American Outdoor Brands (NASDAQ:AOUT).
Related Link: 5 Things You Might Not Know About Joe Biden
Body Cameras: Biden praised the Justice Department for requiring police body cameras. Body camera companies include Axon Enterprise Inc (NASDAQ:AXON) and Motorola Solutions Inc (NYSE:MSI).
COVID-19 Tests: Following up on a plan to provide free at-home COVID-19 tests, Biden shared plans for Americans to once again receive free tests from the U.S. government.
Companies that make COVID-19 tests include Abbott Laboratories (NYSE:ABT), Quidel Corp (NASDAQ:QDEL) and Orasure Technologies (NASDAQ:OSUR).
Pharmacies: Along with at-home COVID-19 tests, Biden announced the launch of “test to treat,” an initiative that will allow Americans to get tested at a pharmacy. If they test positive they will receive antiviral pills “on the spot at no costs.”
This initiative could provide a traffic and sales boost to pharmacy companies that include CVS Health Corp (NYSE:CVS), Walgreens Boots Alliance (NASDAQ:WBA) and Rite Aid Corp (NYSE:RAD).
Pfizer’s Paxlovid, an antiviral oral treatment for COVID-19, was also singled out during the speech.
Insulin Costs: Biden said he wants to cap the cost of insulin at $35 a month, making it more affordable for consumers. The leading insulin providers are Novo Nordisk (NYSE:NVO), Sanofi and Eli Lilly (NYSE:LLY).
Electric Vehicles: Biden used a portion of the State of the Union to discuss his plan to combat climate change, which includes lowering the price of electric vehicles.
Biden shouted out automotive companies Ford Motor Co (NYSE:F) and General Motors Corp (NYSE:GM) during his speech.
“Ford is investing $11 billion to build electric vehicles — creating 11,000 jobs across the country. General Motors is making the largest investment in its history, $7 billion to build electric vehicles, creating 4,000 jobs in Michigan,” Biden said.
The exclusion of Tesla Inc (NASDAQ:TSLA) from the speech prompted a response from CEO Elon Musk, as Tesla remains the leading producer of electric vehicles in the U.S.
Infrastructure: The Bipartisan Infrastructure Law is on the path to fix over 65,000 miles of highway and help “rebuild America.” Biden highlighted the recent announcement that 1,500 bridges will be repaired across the U.S. this year.
Companies that could benefit from increased infrastructure spending include Caterpillar Inc (NYSE:CAT), Deere & Co (NYSE:DE), Vulcan Materials Co (NYSE:VMC), United States Steel (NYSE:X), Nucor Corp (NYSE:NUE) and Jacobs Engineering Group Inc (NYSE:J).
Intel Shoutout: Semiconductor company Intel Corp (NASDAQ:INTC) got a shout out from Biden during the State of the Union speech. Intel is building two factories in Ohio, as part of the largest economic development in Ohio history. Intel CEO Pat Gelsinger was in attendance at the State of Union.
Biden praised the plan as a way to help America from supply disruptions from other countries. The president called on Congress to provide billions of dollars in support for domestic semiconductor production for companies like Intel.
Mental Health: Another pillar of the “Unity Agenda” was to better mental health care. One pure-play company in the mental health space is Talkspace Inc (NASDAQ:TALK), which provides virtual offerings with licensed mental health providers.
President Joe Biden at the White House in January. White House photo by Adam Schultz.
