Trump Backs Tuberville for Alabama Governor: What the Pro-Energy and Pro-Defense Rhetoric Means for Industrials and Energy Stocks

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“RT @realDonaldTrump Highly Respected Senator, “Coach” Tommy Tuberville, is running for Governor of Alabama, a place I love and WON BIG, six times, including Primaries, in 2016, 2020, and 2024!

A former SEC Championship winning College Football Coach, and now, as a Highly Respected U.S. Senator, Tommy has proven he has the Courage and Wisdom to deliver strong results for the incredible people of his wonderful State and Nation. He is a Lifelong Leader, both on and off the field — A true WINNER! As your next Governor, “Coach” will work tirelessly to Grow the Economy, Cut Taxes and Regulations, Promote MADE IN THE U.S.A., Champion American Energy DOMINANCE, Keep our Border SECURE, Stop Migrant Crime, Ensure LAW AND ORDER, Strengthen our Military/Veterans, Safeguard our Elections, and Protect our always under siege Second Amendment.

I was proud to endorse “Coach” when he ran for the Senate in 2020, and am honored to do so again. I’d love to keep him as a Senator, because he was great, but he wants to be the Governor in the State he loves, and that’s OK with me! Tommy Tuberville has my Complete and Total Endorsement to be the next Governor of the Great State of Alabama – COACH TUBERVILLE WILL NEVER LET YOU DOWN!”

How Will Trump’s Statement Affect the Stock Market?

This latest post has the potential to affect the stock market. That’s because Trump’s endorsement of Tommy Tuberville for Alabama governor, with promises to grow the economy, cut regulations, boost U.S. manufacturing, and champion “American Energy DOMINANCE,” could marginally support sentiment toward industrial and energy names like Caterpillar, Exxon Mobil, XLI, VIS, XLE, VDE, and OIH on expectations of a policy environment favoring infrastructure, domestic production, and fossil fuels. His emphasis on strengthening the military and veterans, law and order, and border security may also be modestly positive for defense and aerospace stocks and ETFs, including Lockheed Martin, PPA, XAR, ITA, and related aerospace & defense funds, on the assumption of sustained or higher defense spending and security-related procurement. However, this is a single state-level race and an early-stage political signal, so any impact is likely to be limited and short-term, with broader macroeconomic, earnings, and federal policy developments remaining far more important drivers for these tickers and sector ETFs.

Here are some of the stocks that might be affected:
Caterpillar ((CAT)),
Exxon Mobil Corp. ((XOM)),
Lockheed Martin ((LMT)),
Vanguard Industrials ETF ((VIS)),
Industrial Select Sector SPDR Fund ((XLI)),
Energy Select Sector SPDR Fund ((XLE)),
VanEck Oil Services ETF ((OIH)),
Vanguard Energy ETF ((VDE)),
Invesco Aerospace & Defense ETF ((PPA)),
SPDR S&P Aerospace & Defense ETF ((XAR)),
iShares U.S. Aerospace & Defense ETF ((ITA)),
iShares U.S. Industrials ETF ((IYJ)).