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Nordstrom shares reverse course and turn positive following Trump's tweet

Trump: Nordstrom treated Ivanka so unfairly
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Trump: Nordstrom treated Ivanka so unfairly

Shares of Nordstrom seesawed Wednesday after the high-end retailer became the latest target of President Donald Trump's Twitter attacks.

The company's shares fell from session highs midmorning after Trump said his daughter, Ivanka, had been treated unfairly. His comments were in response to the department store's decision to wind down its relationship with the Ivanka Trump brand, reportedly over its performance.

"My daughter Ivanka has been treated so unfairly by @Nordstrom. She is a great person -- always pushing me to do the right thing! Terrible!" Trump's Tweet said.

@realDonaldTrump: My daughter Ivanka has been treated so unfairly by @Nordstrom. She is a great person -- always pushing me to do the right thing! Terrible!

However, Nordstrom shares recovered their losses and ended the day 4 percent higher, after The New York Times reported that TJX, the parent company of T.J. Maxx and Marshalls, instructed its employees to remove all Ivanka Trump merchandise from featured parts of the store. The company also told employees to throw out signs referencing the brand.

Shares of TJX were slightly higher in late trading.

"The communication was intended to instruct stores to mix this line of merchandise into our racks, not to remove it from the sales floor," a spokeswoman for TJX told Times.

"We offer a rapidly changing selection of merchandise for our customers, and brands are featured based on a number of factors," the spokeswoman said.

Politics were never mentioned in Nordstrom's decision to discontinue Ivanka Trump's line. However, the chain was one of the dozens of retailers being targeted by the #GrabYourWallet campaign. That movement is calling for shoppers to boycott brands with ties to the Trump family.

A representative for Nordstrom did not immediately respond to CNBC's request for comment.

While some retailers have separated themselves from the Ivanka Trump line, others continue to carry it. A spokeswoman for Hudson's Bay confirmed to CNBC that Lord & Taylor and Saks OFF 5TH still sell the label.

"Across our banners, we aim to a deliver a strong assortment of fashion," the company said in a statement. "We respect our customers' right to choose the brands that work for them. In turn, our customers' choices inform our decisions on which merchandise we offer."

In a statement obtained by MSNBC, Rosemary K. Young, senior director of marketing at Ivanka Trump said in part: "The Ivanka Trump brand continues to expand across categories and distribution with increased customer support, leading us to experience significant year-over-year revenue growth in 2016. We believe that the strength of a brand is measured not only by the profits it generates, but the integrity it maintain."

Separately, Sen. Bob Casey, D-Pa., raised ethical concerns about Trump's tweet, tagging the independent Office of Government Ethics in a tweet. The agency has criticized the president for not divesting from his businesses or establishing a blind trust when he took office.

Tweet

And earlier Wednesday, on a call with reporters, National Retail Federation CEO Matt Shay was asked about the tweet and what it could mean for the industry.

"We're living in a world with a different kind of a chief executive in the White House," he said.

"We're learning, all of us, how to work in that environment."

Shay went on to say that the trade group has been encouraged by Trump's intentions so far, particularly his role as a businessman and retailer.

He also mentioned that the organization agrees with the president's previous statement that a border adjustment tax is confusing and complicated. The retail industry has banded together to fight against that GOP proposal, which would tax imports on goods that will be sold in the U.S.

"We're trying to find ways to be aligned and be supportive," Shay said.

Nordstrom's shares are down 7 percent year to date.

— CNBC's Jacob Pramuk contributed to this report

Nordstrom 1-day chart

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