Why Brokerage Stocks Like Schwab and Raymond James Are Up Today

Group 1 - The stock market experienced a significant positive shift, particularly benefiting brokerage firms like Charles Schwab and Raymond James Financial, with shares rising by 6.5% and 9.4% respectively [1][2] - The bullish environment for the banking sector is largely attributed to Donald Trump's successful presidential bid, which is expected to favor pro-business policies, positively impacting financial stocks [2][4] - Historical performance indicates that shares of Raymond James and Charles Schwab saw growth during Trump's previous presidency, supported by strong economic growth and a peak GDP growth rate of 4.8% in Q3-2019 [3][4] Group 2 - The current economic agenda appears to mirror Trump's previous policies, leading investors to connect the dots and anticipate similar outcomes for financial stocks [5] - Despite the positive market reaction, caution is advised as the surge in Raymond James shares may lead to profit-taking, especially since they are trading above analysts' consensus price target of around $146 [6][7] - Charles Schwab presents a compelling investment opportunity, as its shares, despite recent gains, remain below early-2022 highs, suggesting potential for further upside [8]