Trump And The Stocks He Tweets About
NEW YORK CITY, NEW YORK - Since being elected the 45th President of the United States, Donald Trump's small fingers have been vigorously at work . . . on Twitter. Let's take a look at how the public companies he has tweeted about have fared since his stunning victory over Hillary Clinton.
Nordstrom (JWN) - We Only Sell Chinese-Made Junk That People Buy
Nordstrom (JWN) is an American retail institution. While the consumer retail sector is currently being ravaged by a shopper's version of Freddy Kruger, the 100+-year old company still run by the Nordstrom family is back in the spotlight thanks to a decision to want to make more profit. For those of you living under the proverbial rock, Nordstrom removed Ivanka Trump's merchandise from their shelves due to poor sales and that infuriated her President father who attacked the company on Twitter, igniting a flashpoint in American consumerism.
At no point in history have so many people been concerned with who is going to buy clothing and accessories made in China by poorly-paid workers . . . until now.
This is the most recent of President Trump's rampages against (or for) publicly-traded companies. On 2/8/2017 at 10:51am, Trump focused his Twitter rage on Nordstrom and the results were unimaginable unless you have a love for pure comedy. On this 15-minute chart you can see that the stock immediately surged as bulls stepped in and spanked the bears into bloody submission.
At the time of the tweet JWN was trading at roughly $42.75. Since that time the share price has surged more than 6% to $45.55 per share.
Lost in all of this is the fact that Trump admitted that he needs other people to push him "to do the right thing", which has ominously evaded discussion. That's pretty scary considering he has access to thousands of nuclear weapons.
Boeing (BA) - It's Airborne, Bitch!
Boeing (BA) is one of America's leading aerospace and defense companies. In addition to building passenger jets, Boeing builds a number of military aircraft. On December 6th, 2016, then President-elect Donald Trump tweeted about the cost of Boeing's contract for Air Force One.
Let's take a look how Boeing's stock has performed since that time. There was a gap down open, as the tweet occurred before the market opened, but since then it's been 'Blue Sky Territory' for the company as it has surpassed all-time highs in share price. On 12/6/2016 Boeing (BA) opened with a gap down to $150.85. However, the market soon realized that he was most likely full of shit and the company's share price soared, reaching an all-time high of $170.00 per share on 1/26/2017.
That's a nice return of nearly $20 per share in just under two months if you were able to sell at the apex. Not too shabby for a tweet meant to injure the company and its shareholders.
United Technologies Corp. - United We Stand, United We Don't Fall
United Technologies (UTX) is the parent company of Carrier - the air conditioning and heating subsidiary that President Trump made a rallying cry for making America super awesome and great again! His negotiations with the industrial conglomerate was an undeniable early victory for Team Trump - even before he was sworn in as the 45th President of the United States.
On 11/30/2016, Trump tweeted about his impending meeting with the HVAC company that is no longer moving to Mexico . . . yet. Let's switch to the hourly chart for all the awesome whipsaw action! Since his tweet the stock has sustained some modest gains, rising from $107.97 a share to a respectable $110.09 share price. Not too bad, but you would have thought a positive tweet and a positive development in terms of keeping jobs in the United States would have caused a bigger boon for investors. That's not to say that saving a bunch of jobs wasn't a good thing, but the market let out a giant 'Meh'.
Rexnord (RXN) - Tyrannosaurus Rexnord?
Rexnord (RXN) is a diversified industrial company involved in a whole lot of industries. Trump aimed a negative tweet at the company for moving jobs to Mexico and the stock initially plummeted before investors shrugged off the shade and sent the company's stock price higher.
After his meeting at Carrier, Trump set his sights on the company down the road. Rexnord took it on the chin, but kept on keeping on. The tweet happened after the market closed for the weekend so the full effect couldn't be ascertained until 12/5/2016 when the market's opened for business. The stock price initially plunged a bit, rallied, plunged again, then went on a nice little run, taking it from $20.28 per share just before the tweet to over $23.00 today. In the following hourly chart, the battle between bulls and bears seems to have been won by the bulls . . . for now. Solid recovery for RXN investors after some unwarranted panic selling.
Lockheed Martin (LMT) - Take Heed Of The Tweet!
Just like Boeing, Lockheed Martin (LMT) is a storied defense and aerospace juggernaut with favorable government contracts. Trump apparently decided it wasn't fair to only pick on Boeing in this sector, so he set his tiny fingers at work plotting the demise of Lockheed Martin and pitting the two institutions against one another. Unfortunately for Lockheed Martin, this negative tweet seemed to spook investors and approximately half of the gains from the Trump rally seemed to have evaporated like a bunch of Isis goons hit by a Hellfire Missile.
On 12/22/2016, Trump gave it to Lockheed Martin in the stones and sent the daily chart into Whipsaw Hell. At the time of his tweet, LMT was trading at $252.80. Since that time the stock has rebounded a bit and is now at over $258 per share. Not a bad recovery, but there seems to be a lot of uncertainty here.
Tune in soon for Volume II of Trump's tweets about publicly-traded companies!
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The Valley Report