Market Insider

Yet another reason that companies should be 'concerned about' Trump tweets

President Donald Trump
Getty Images

President Donald Trump's tweets hit the market's perception of a stock for a day or so, but over time the impact is more mixed, analysis shows.

S&P Global Market Intelligence found that Trump's tweets do affect the way markets perceive the credit quality of companies he targets, at least in the short term.

For example, in early January, Trump threatened Toyota with a border tax if the automaker built a new plant in Mexico. The next day, perceived probability of default for the company jumped 26.2 percent from what markets had expected a day before the tweet, according to analysis from Jim Elder, director of risk services at S&P Global Market Intelligence. 

Credit risk measures how likely it is that a company will default, or fail to pay back its debt.