Chinese trade negotiators suddenly canceled a visit to meet U.S. farmers after they wrapped up trade talks in Washington this week.Marketsread more
President Trump also said he is "not looking for a partial deal" with Beijing, moving away from his suggestion last week that he would consider an "interim deal."Politicsread more
Progress on trade talks will determine how far market will move above new highs.Trader Talk with Bob Pisaniread more
For investors taking a breather from the chaos in August, buckle up as the market is about go crazy again, Goldman Sachs warned.Marketsread more
Michael Pack, a conservative filmmaker linked to Steve Bannon, saw at least $1.6 million in donations from his nonprofit sent into the coffers of his independent production...Politicsread more
The Patriots released Antonio Brown only 11 days after signing the wide receiver.Sportsread more
The Wall Street Journal's report came as a top Ukraine official said President Donald Trump "is looking" for Ukraine officials to investigate business dealings of Biden's son...Politicsread more
A tour bus carrying Chinese-speaking tourists crashed near a national park in southern Utah, killing at least four people and critically injuring up to 15 others, authorities...U.S. Newsread more
Gun maker Colt announced Thursday that it will halt its production of AR-15 rifles for civilian sales, but the news might not be as exciting for gun control advocates as it...Guns and Weaponsread more
As thousands of people across the world participate in the Global Climate Strike, several Democratic presidential candidates have shared how they will take aggressive action...Scienceread more
With "tariff man" President Trump waging a tariff war and Democratic candidates pushing against big international deals, free trade has become politically homeless, writes...2020 Electionsread more
If President Donald Trump wants to keep his strong stock market gains, he may want to stay off Twitter.
Days when Trump tweets a lot are associated with negative stock market returns, Bank of America Merrill Lynch said Tuesday in a report.
The brokerage's chief equity strategist, Savita Subramanian, wrote in a note that "since 2016, days with more than 35 tweets (90 percentile) by Trump have seen negative returns (-9bp), whereas days with less than 5 tweets (10 percentile) have seen positive returns (+5bp) — statistically significant." A basis point is 0.01 percent.
In other words, when Trump tweets more than usual, the stock market tends to fall slightly, on average.
"Trade talk, political campaigning and tweets have contributed to volatility, from China to Fed policy to tax policy," she wrote. "And new tariffs announced in August indicate downside risk to our 2019/20 EPS growth forecasts of +2%/+7%, where indirect impacts from hits to corporate or consumer confidence could be significant."
To be sure, while an active Trump on Twitter can disrupt markets with sudden pronouncements on China trade or the Federal Reserve, he has still been good for the stock market overall. The Dow is up 42% since the 2016 presidential election and 31% since his inauguration.
It's down 1.6% since May 5, however, when the president shocked financial markets by announcing on Twitter that he would increase tariffs of 10% on $200 billion to 25%, dashing hopes that the world's two largest economies were nearing a trade resolution.
Since then, Trump's go-to report card for a strong economy has been far more volatile as his protectionist trade policies and trade war with China take an ever-growing toll on American business sentiment, capital expenditure and the stock market.
Trump doubled down on his tough trade stance on Tuesday, tweeting "We are doing very well in our negotiations with China. While I am sure they would love to be dealing with a new administration so they could continue their practice of 'ripoff USA'($600 B/year),16 months PLUS is a long time to be hemorrhaging jobs and companies on a long-shot."
"And then, think what happens to China when I win. Deal would get MUCH TOUGHER!" he added.
The Dow was down more than 350 points at 12:55 p.m. ET on Tuesday.