Editor’s Note: Anthony Mirhaydari is filling in for Sam Collins today. Sam will return (tentatively) on Thursday.
America Movil SAB de CV (ADR) (NYSE:AMX) — U.S. equity futures are rebounding from Monday’s cash session losses overnight thanks to a stronger-than-expected debate performance by Hillary Clinton over GOP rival Donald Trump.
While Trump had strong moments early in the bout, a combination of unfavorable questioning, tactical errors and flustered answered seemed to tilt the contest in Hillary’s favor by the end.
At least, that seems to be the verdict of financial markets with the Mexican peso — which had been weakening in recent days as Trump rose in the polls — surging in overnight trading.
That should be good news for Mexican stocks like telecommunications giant America Movil, as Mexican shares in general have lost nearly roughly 13% from their mid-August high. AMX offers wireless and fixed-voice services as well as satellite television.
AMX, along with the rest of the Mexican economy, could be threatened by a Trump electoral victory given his tough economic nationalism and call for a southern border wall (which he wants Mexico to pay for). He has called for renegotiating trade deals, including NAFTA, and has called for increased import tariffs.
AMX is additionally vulnerable to the fortunes of Trump because of its status as a turnaround play, with shares languishing near year-to-date lows with critical support near $11. The company has reportedly submitted a proposal to shareholders to delist from the Nasdaq and suffered a 45% year-over-year drop in net earnings in the second quarter on a 2.1% drop in its wireless subscriber base.
However, the stock could enjoy a nice pop to its 200-day moving average, last tested in April, thanks to Hillary’s performance.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers. As of this writing, he did not hold a position in any of the aforementioned securities.