Trump tweets don't hurt company stocks
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Evan Vucci / AP
Donald Trump's critical tweets about specific companies have not caused lasting damage to those companies' stock prices, despite widespread CEO jitters that they could.
Since first being elected, Trump has hurled 140-character barbs at companies that he believes are being unfair toward him (NY Times), his family (Nordstrom), American workers (GM, Toyota, Rexnord) or American taxpayers (Boeing, Lockheed Martin). Axios has examined the relevant tweets, and found:
Short-term: Shares in five of the seven targeted companies were down in the first 30 minutes of post-tweet trading.
Long-term: Shares in six of the seven targeted companies are trading higher today than they were prior to the tweet.
Data: Twitter, Google Finance; Chart: Lazaro Gamio / Axios
Two notes:
- Toyota's stock price had already been heading south for several months prior to Trump's tweet.
- It may be too early to judge the long-term impact on Nordstrom stock, since Trump's tweet occurred just last week.
Methodology: In cases where Trump didn't tweet during market hours, we looked at the first 30 minutes of trading for the subsequent day. We also excluded any Trump tweets that included links to outside articles, since we couldn't separate the influence of Trump's tweet from the outside event to which he was linking.
