President Donald Trump may be losing grip on one of his quantifiable powers: the ability to substantially move stock prices through tweets.
The president took to his powerful Twitter (ticker: TWTR) account on Wednesday to congratulate Intel Corp. (INTC) and CEO Brian Krzanich for a $7 billion American innovation and jobs investment. The company said it would funnel the money into creating an Arizona factory and employing a minimum of 3,000 employees. The tweet to more than 24 million Trump followers included a 2-minute video and was also sent out on the White House’s official @POTUS twitter account.
INTC stock responded by … doing absolutely nothing. Today, it ticked down more than 1 percent before recovering to nearly a break-even point.
Thank you Brian Krzanich, CEO of @Intel. A great investment ($7 BILLION) in American INNOVATION and JOBS! #AmericaFirst pic.twitter.com/76lAiSSQ1l
— Donald J. Trump (@realDonaldTrump)
As several news outlets pointed out, some of these moves from Intel aren’t exactly new, with plans going as far back as 2011 under former President Barack Obama.
Earlier in the day, Nordstrom (JWN) stock merely flickered when Trump criticized the retailer for treating his daughter Ivanka Trump “so unfairly” by declining to carry her clothing line. Fortune notes that JWN shares actually shot up more than 4 percent by closing and went so far as to say that Nordstrom’s stock “just broke the Donald Trump tweet curse.” The stock is up nearly another 1.6 percent today.
A Nordstrom spokesperson issued a statement reiterating the company’s claim that its decision to stop selling Ivanka Trump’s brand was due to its performance and that it “personally informed” the first daughter regarding the matter last month.
.@PressSec says @Nordstrom removing Ivanka’s clothing line was an attack on Trump family. This is what company says. pic.twitter.com/5i7zhuGBgv
— Jeff Zeleny (@jeffzeleny)
Trump’s tweets have previously had a stronger impact on the likes of Lockheed Martin Corp. (LMT) and Toyota Motor Corp. (TM). One finance app had even started giving users the option to trade stocks following his tweets.
Companies like Boeing Co. (BA) and General Motors Co. (GM) have enjoyed same-day recovery from negative Trump tweets, but Nordstrom’s rally stood out among the fray. Fortune also points out that the National Retail Federation’s industry forecast predicting a 4.2 percent jump for retail sales in 2017 came out just 11 minutes following Trump’s tweet. Nordstrom’s stock still “far outpaced the broader industry,” reports Fortune.
A Financial Times analysis of Trump’s Twitter use starting this year found that a Trump insult tweet had nearly zero impact, on average, on a company’s share price in an hour, while praise from the president initiated a 1 percent uptick on average that first hour. That uptick usually begins its decline “within 24 hours.”
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Is Donald Trump Losing His Stock-Moving Mojo? originally appeared on usnews.com
