Debunked: Wall Street is terrified of Trump's tweets

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President Donald Trump loves to use Twitter, and his tweets make headlines. The President has used his 140 characters to go after businesses and companies like Nordstrom, Lockheed Martin, Boeing, and General Motors.

The immediate reaction has created a common narrative, that many on Wall Street are terrified that President Trump will tweet about their company. But, after almost a month of the Trump presidency, a few things have been clear.

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Retail CEOs who met with Donald Trump
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Retail CEOs who met with Donald Trump

Bill Rhodes — Chairman, president, and CEO of AutoZone

AutoZone's stock took a hit after Trump's election, which was perceived to be a reaction to Trump's rhetoric over trade with Mexico. The US auto industry imports $80 billion worth of cars and parts from Mexico annually.

After the meeting with the president, Rhodes said in a statement, "the president understands we support pro-growth policies that we believe will lead to greater domestic investment."

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Brian Cornell — Chairman and CEO of Target

In January, Cornell traveled to Washington, DC to meet with members of the House Ways and Means Committee.

"He told them an import tax could impact consumers' ability to buy essential goods, such as baby supplies that are made overseas and imported to the United States, according to a person familiar with the talks," Reuters reported.

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Hubert Joly — CEO of Best Buy

Reuters reported in January that Best Buy was circulating a flyer throughout Capitol Hill that cited "an analyst forecast that a 20 percent tax would wipe out the company's projected annual net income of $1 billion and turn it into a $2 billion loss" and that "foreign internet sellers like China's Alibaba.com would be able to avoid the tax by making sales online and shipping to U.S. consumers directly, 'undercutting U.S. businesses.'" 

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Art Peck — CEO of Gap Inc.

Gap Inc.'s family of brands — which includes Gap, Old Navy, and Banana Republic — produces its clothing and apparel overseas.

Peck has not publicly commented on the implications of a border tax but was one of the signatories of a public letter to Trump following his the November US presidential election that called for him to uphold President Barack Obama's climate change regulations.

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Stefano Pessina — CEO of Walgreens Boots Alliance

The Walgreens Boots Alliance and Rite Aid agreed to a merger late last year, but they did not get the deal approved before Trump took office. They are awaiting the merger to go through in July, pending approval by the Federal Trade Commission. 

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Marvin Ellison — Chairman and CEO of J.C. Penney

In a climate where retail stores have been severely struggling, J.C. Penney is no different, though Morgan Stanley analysts bumped up the company's stock rating from "Underweight" to "Equal Weight" on February 13. 

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Jill Soltau — President and CEO of Jo-Ann Stores

Jo-Ann Stores is America's largest fabric and crafts retailer, with about 800 locations across 49 states.

At the end of 2015, it had $2.4 billion in sales and 23,000 employees

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Greg Sandfort — President and CEO of Tractor Supply Company

In early 2016, Sandfort said Trump seemed like a "Pandora's box," the Nashville Business Journal reported and noted that he was wary of a Democratic president increasing regulation and portraying the business world in a negative light.

Tractor Supply Company is a Tennessee-based retail chain focused on home improvement products, with $6 billion in sales and locations in 49 states. 

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The impact of a Presidential tweet is relatively minor, and it seems to be losing some of its punch.

Take the most recent case, the Nordstrom tweet. After Trump went after the clothing company for dropping the apparel line of his daughter Ivanka, the stock slid a bit. It fell 0.6%. It was back in positive territory in minutes.

Lockheed Martin fell about 5% after Trump tweeted about the F-35 fighter jet program costing too much money, but bounced back in days. Similarly Boeing fell 1.5% after the President's cost of Air Force One tweet. The company ended the same day in the green. And finally General Motors, they fell 1% after Trump went after one of their factories. GM's stock has stayed flat since the tweet.

The shock and awe of the Trump tweet does cause a dip in stock prices for these companies.

But in the long run, after the media has moved on to another story, Wall Street has learned there's no reason to fear a Trump tweet.

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