inside the year since he was elected, President Donald Trump has been willing to blast or praise specific companies by name on Twitter, in addition to that will’s doing measurable harm — or benefit — to the stock prices of those firms inside the short term, a CNBC analysis has found.
We’ve never seen a president as willing to criticize American companies as Trump has inside the year since Election Day. He’s name-checked more than 15 companies on Twitter in that will time, several of them more than once.
He has sparred with Boeing over the cost of the Air Force One program. (“Cancel order!”) He’s blasted the retailer Nordstrom after This kind of announced This kind of would likely drop his daughter’s product line. (“My daughter Ivanka has been treated so unfairly by @Nordstrom.”) in addition to he lit into the pharmaceutical giant Merck after that will company’s CEO resigned coming from the president’s manufacturing council inside the wake of the president’s racially tinged response to events in Charlottesville, Virginia. (“@Merck Pharma will be a leader in higher & higher drug prices while at the same time taking jobs out of the U.S.”).
The president has also praised companies by name when they take steps that will dovetail with his agenda.
He lauded ExxonMobil in March when This kind of announced brand-new details of an expansion This kind of began in 2013. (“Buy American & hire American are the principals at the core of my agenda, which will be: JOBS, JOBS, JOBS! Thank you @exxonmobil,” the president tweeted on March 6, before correcting the spelling to “principles” a few hours later.)
Trump lavished Ford with praise when the automaker announced brand-new details of a long-running plan to invest billions in brand-new plants inside the U.S. (“Big announcement by Ford today.”) in addition to sometimes he has commended companies he previously blasted, apparently concluding the situation has turned to his benefit.
On Jan. 3, the president blasted General Motors in a tweet criticizing This kind of for its production of the Chevy Cruze in Mexico. “Make in U.S.A. or pay big border tax,” the president wrote. however all seemed forgiven by Jan. 24, when automakers went to the White House. “Great meeting with Ford CEO Mark Fields in addition to General Motors CEO Mary Barra at the @WhiteHouse today,” the president wrote.
These tweets aren’t just empty pixels. They have a surprisingly large short-term impact on the company’s stock prices.
On average, a negative tweet by the president caused an immediate short-term negative 1.2 percent move inside the targeted company’s stock cost, CNBC’s analysis found. Similarly, a positive tweet by the president generated an immediate short-term 1.1 percent move higher.
that will includes a real dollars in addition to cents impact, although short-lived. Averaged out, positive Trump tweets generated $1 billion in market value for the companies inside the short term, in addition to the negative tweets slashed $1.3 billion in market value in trading shortly after the tweet.
To be sure, there are a lot of trends that will move stock prices on a given day, in addition to each situation will be unique to the company involved.
however This kind of does appear the president includes a power no previous holder of the executive office wielded: the ability to move markets which has a tweet.
Correction: This kind of story was revised to correct that will Trump’s tweet was targeting Boeing about Air Force One.