NEW YORK — President-elect Donald Trump issued a single tweet blasting defense contractor Lockheed Martin Corp. at 8:30 a.m. on Monday. By lunchtime, he had wiped $4 billion off the company’s market value.
Wall Street traders began dumping the company’s stock after Trump blasted its fighter jet program: “The F-35 program and cost is out of control,“ he tweeted. "Billions of dollars can and will be saved on military (and other) purchases after January 20th.”
With his 17 million Twitter followers and upcoming inauguration to the most powerful job in the world, Trump presents challenges and opportunities that Wall Street has never seen before. Traders not only have to monitor the president-elect’s every word; they also have to follow his Twitter feed. Some are already crafting strategies to cash in on the president-elect’s penchant for bashing individual companies.
“This is a new type of risk, call it presidential tweet risk,” said Jack Ablin, chief investment officer at BMO Private Bank. “And it’s the largest companies that enjoy a global supply chain, relatively low tax rate and have marshaled Washington to their benefit that seem to be at the most risk. But everyone now has to keep their Twitter feed right next to their Bloomberg terminal.”