Trump Trade: White House postpones healthcare proposal after backlash

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly.

HEALTHCARE PROPOSAL: The White House plans to postpone its healthcare proposal following significant backlash from Congress, MS Now’s Jake Taylor reports, citing two White House officials. President Trump had intended to make an announcement as soon as Monday proposing a framework to address the cost of healthcare, including an extension of Obamacare subsidies, the author notes.

Speaker Mike Johnson has warned the White House that House Republicans do not want to extend enhanced Affordable Car Act, or ACA, subsidies, Olivia Beavers and Natalie Andrews of The Wall Street Journal report, citing people familiar with the matter. This message from Johnson comes as President Trump’s advisers were drafting a healthcare plan to extend the subsidies by two years. Publicly traded companies in the space include CVS Health (CVS), Centene (CNC), Cigna (CI), Elevance Health (ELV), Humana (HUM), Molina Healthcare (MOH) and UnitedHealth (UNH).

CALL WITH CHINA’S XI: President Donald Trump stated in a Truth Social post, “I just had a very good telephone call with President Xi, of China. We discussed many topics including Ukraine/Russia, Fentanyl, Soybeans and other Farm Products, etc. We have done a good, and very important, deal for our Great Farmers – and it will only get better. Our relationship with China is extremely strong! This call was a follow up to our highly successful meeting in South Korea, three weeks ago. Since then, there has been significant progress on both sides in keeping our agreements current and accurate. Now we can set our sights on the big picture. To that end, President Xi invited me to visit Beijing in April, which I accepted, and I reciprocated where he will be my guest for a State Visit in the U.S. later in the year. We agreed that it is important that we communicate often, which I look forward to doing. Thank you for your attention to this matter!”

CONSERVATORSHIP: Wedbush double upgraded Fannie Mae (FNMA) to Outperform from Underperform with a price target of $11.50, up from $1, after transfer in analyst coverage. The Trump administration is putting Fannie Mae on a path to leave conservatorship and to monetize Treasury’s investments, the firm tells investors in a research note. Wedbush believes action could come int the near-term given that Bill Pulte said recently that the administration plans on selling 5% of the stock associated with Treasury’s options on 79.9% of Fannie’s stock by the end of this year or early next year without taking it out of conservatorship. The firm estimates nearly 50% probability of upside for the shares.