When Trump targets stocks

Top 6 and a Half Stocks Rocked by Trump

August 30 by Stephanie Tan

It’s no secret Trump has the power to move stocks with just 140 characters. Some stocks have enjoyed a Trump bump since he’s taken office. Others have been battered by the Trump slump (if only temporarily) as a result of his offhand remarks and tweetstorms. And a handful have experienced both. Here are the top stocks that have gotten all shook up by the Donald:

1. GM


Trump has taken the US automaker’s stock on a wild ride. In early 2017, the Tweeter-in-Chief slammed General Motors on Twitter, saying it should start making its cars domestically or “pay a big border tax!” While GM fell in premarket that day, it quickly recovered from the attack. Maybe it helped that it was quick to correct Trump, saying only a small number of one model was made in Mexico. Just months later, GM made a show of support for the president’s “Made in America” plan by announcing it was creating additional jobs in the US. The brown-nosing worked and its share price climbed.

2. Merck


Adolf Twitler has pounced on the pharma industry numerous times. Soon after his election, he vowed to bring down drug prices and accused Big Pharma of “getting away with murder.” (Funny, because we could say the same about him.) Pharma stocks like Merck felt the heat, becoming the worst performer of the S&P 500 index. Then in August 2017, Merck’s CEO stepped down from Trump’s advisory council. Even though Trump blasted him on Twitter for his decision, Merck’s stock enjoyed its biggest jump in a month.

3. Boeing

Following Trump’s election, Boeing’s shares rose 23% in 3 months. But then the Tangerine Tornado took aim at the jet maker over the ballooning costs of the Air Force One. “Costs are out of control…Cancel order!” he tweeted. Boeing’s stock momentarily lost altitude thanks to the threat of losing a $4 billion contract. You can call that the Hair Force One effect.

4. Cisco

In June, Cisco’s CEO and other Silicon Valley leaders attended a tech summit hosted by Trump. But other than that, the networking giant has been neither friend nor foe of the president. Still, the stock plunged in early 2017 after Cisco blamed a poor forecast on uncertainty from the transition to the Trump administration. Apparently, many federal departments were unsure about their budgets as Thrifty Trump had pledged to cut government spending. It wasn’t great news for Cisco as it relies heavily on orders from the U.S. public sector.

5. Bank of America

Bank stocks were on a roll after Trump’s victory. Two things brought on the feelgood vibes: Trump promised to reduce the top corporate tax rate and roll back regulations on the financial industry. As a result, banks got a lot of love from investors. Particularly Bank of America, whose stock even outperformed Goldman Sachs’. But the party was over by April 2017, as banks reported their quarterly results. Like many other major banks, Bank of America’s trading revenue came under pressure thanks to a too-tame market.

6. Nordstrom

Its stock took a brief hit after Trump lashed out at the upscale department store. He called them “terrible” for dropping the fashion line of his daughter, Ivanka. While Nordstrom said the decision was made based on sales, not politics, Trump nevertheless took to Twitter to complain. But the stock rebounded from the attack in just 4 minutes – and even gained 7% over the next day. Seems like by trying to hurt Nordstrom, he unintentionally gave it a boost instead…

6 ½. Twenty-First Century Fox

The media giant’s stock may have never been directly impacted by Trump. But it is the parent company of Fox News, which we know the president avidly watches. He even has a penchant for promoting their content on Twitter. Are more people tuning in to Fox thanks to Trump? Could explain why the company’s cable business is booming while many of its peers are suffering. In fact, in the past year, the stock has seen a 6.7% increase compared with the industry’s 2.9%. And we’re sure the Trumpster would like nothing more than to believe he steals the show…

 

You can trade almost all of these stocks with BUX!

Written by

Stephanie Tan

Nomadic wordsmith who has dabbled in public relations, media and now, casual trading. She may not have a head for numbers but she enjoys doing cyber-sleuthing on companies and loves being immersed in all things tech. Connect with her on BUX: @Stephtrades

Disclaimer: All views, opinions or analysis expressed in articles are that of the author and do not represent the views of BUX. Neither BUX nor the author provide financial advice and these articles should not be construed as such.

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