Construction material stocks are surging on reports that President Trump's administration is preparing a $1 trillion infrastructure proposal

Advertisement
Construction material stocks are surging on reports that President Trump's administration is preparing a $1 trillion infrastructure proposal
In this Feb. 17, 2016, photo, crews work on a joint construction project between Caltrans and the City of Sacramento on a connector bridge between 2nd street and Capitol Mall in Sacramento, Calif. California Gov. Jerry Brown called for new fees and taxes to pay for a $57 billion backlog in repairs to California's crumbling state highway system, but so far the Legislature has not held any hearings on Brown's plan or other legislative proposals to address the funding backlog, leaving local governments frustrated.Rich Pedroncelli/AP Photo
  • On Tuesday, Bloomberg reported that President Trump's administration is eyeing a $1 trillion infrastructure proposal.
  • Shares of construction materials companies surged Tuesday, with some posting gains upward of 10%.
  • The iShares US Infrastructure ETF jumped as much as 15% in early trading Tuesday, before paring some gains. It traded up about 4% later in the day.
  • Read more on Business Insider.
Advertisement

Shares of construction materials companies are surging Tuesday on reports that the Trump administration is readying a $1 trillion infrastructure proposal.

The proposal from President Donald Trump's administration is part of a push to provide stimulus to the US economy following the shock of the coronavirus pandemic, Bloomberg reported Tuesday. The Department of Transportation is preparing a preliminary version, according to the report.

Most of the $1 trillion would be reserved for traditional infrastructure work including roads and bridges. The proposal would also include money for 5G wireless infrastructure and rural broadband, according to the report.

Read more: Famed short-seller Andrew Left breaks down why he's betting against these 4 companies — including Hertz and Tesla competitor Nikola

At the start of trading Tuesday, the iShares US Infrastructure ETF popped as much as 15% to $27.46. Later in the day, the exchange-traded fund paired some gains, but remained more than 4% higher.

Advertisement

A number of construction materials companies also posted big gains on Tuesday, including:

  • Granite Construction (GVA) - +20%
  • Vulcan (VMC) - +13%
  • Summit Materials (SUM) - +13%
  • Tutor Perini Corp (TPC) - +13%
  • Cleveland Cliffs (CLF) - +12%
  • Martin Marietta Materials (MLM) - +11.3%
  • Fluor Corporation (FLR) - +11%
  • Eagle Materials (EXP) - +10%

Even with today's gains, the iShares US Infrastructure ETF has shed roughly 14% year-to-date.

{{}}