The U.S. election is about two weeks away – and who winds up in the White House and in Congress could have an impact on key corners of the stock market, according to Bank of America. “Profits accelerating are far more important than who is sitting in the Oval Office. But politics can make or break sub-sectors,” the firm wrote in a Friday note. With this in mind and with volatility expected to rise as the Nov. 5 election nears, Bank of America strategists say it’s now a stock picker’s market. “Now is not the time to close one’s eyes and buy the index,” the investment bank said. Here are some of the ways Bank of America analysts think the upcoming election results could affect the stock market. Harris presidency, split government A victory for Democratic candidate Kamala Harris in the White House, plus a Republican-controlled Congress, could be “the best outcome” for online media companies, according to Bank of America analyst Justin Post. He noted that Harris is likely to enforce a potential ban on TikTok — which could boost Meta Platforms and Snapchat . META YTD mountain Meta Platforms in 2024 “While a Democrat-led [Department of Justice] will likely continue to bring more antitrust pressure to the Big-3 ( GOOGL , META, & AMZN ), a split congress is less likely to pass legislation that could change [the] current operating environment,” Post wrote. Meanwhile, Harris’ plan to increase corporate income taxes to 28% from the current level of 21% would likely pose a headwind to retailers that have high domestic exposure, according to analyst Lorraine Hutchinson. During Donald Trump’s first term in office, his corporate tax rate cut — the opposite scenario — led to most businesses re-investing the savings in their businesses, per Hutchinson. Some stocks exposed to this risk include clothing retailers such as Lululemon Athletica , American Eagle Outfitters , Gap and Urban Outfitters . Beauty retailer Ulta and discount chain Five Below may also be hurt, according to the analyst. Health-care facility stocks such as Tenet Healthcare and Universal Health Services could also benefit as Harris would likely work to expand Medicaid coverage — a boost for providers, said analyst Joanna Gajuk. To be sure, managed care companies may be negatively affected by changes to Medicare Advantage under Harris. “Democrats have been more focused on potential overpayments and implementation of more regulations to govern how business is run. President does not need…
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