Wall Street is reacting to President Donald Trump‘s Twitter feed. Investors should take note too.
“In every instance where the president has tweeted about a company, that’s been a buying opportunity,” Jason Ware, chief investment officer and chief economist at Albion Financial Group, told CNBC on Tuesday.
Amazon share price fell 5.2 percent Monday after the president said on his personal Twitter account that Amazon is scamming the U.S. Postal Service, costing the agency “billions of dollars” delivering packages for the e-commerce giant.
Trump tweeted about Amazon three more times by Tuesday. Company share prices are currently down 0.1 percent.
But it wasn’t just the president’s tweets that caused market watchers to panic on Monday, the first day of trading during the second quarter. Fears of trade wars and increased regulation in the tech sector added fuel to the fire. The Dow Jones industrial average, S&P 500 and Nasdaq Composite all closed lower on Monday, leaving the S&P and Nasdaq in correction territory.
By Tuesday, all three major indices rebounded but did not regain all losses from the previous day. Some analysts are optimistic that second-quarter earnings will turn the market around.
But Randy Warren, CEO of Warren Financial Service, said the market isn’t paying attention to earnings now.
Warren said he thinks the trend of politicians using social media to advance their agenda will continue.
“Once the social media is out there and our government is using social media, it’s not going to stop,” he said. “Trump just happens to be the first guy with a Twitter account. Every president from here on forward is going to have one, and it’s going to matter what they have to say in that Twitter account.”
The president’s Twitter habits, however, started long before he took office, with varying results. On Jan. 3, 2017, Trump went after General Motors, causing the reverse effect: The company’s shares shot up 5.52 percent the next day.
On Dec. 6, 2016, shortly after he won the election, Trump tweeted about Boeing. Share prices rose 1.25 percent the next day.