New risk for stocks: Trump’s twitter

Analysts have to account for a new kind of risks for individual stocks and that it President-elect Donald Trump’s twitter attack, which is likely to continue throughout his Presidency. Yesterday, he took to twitter against Boeing and said, “Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!” That was sufficient to tank the stock almost $2, just after opening. He said that he want Boeing, which has been making Air Force One planes for Presidents since 1943, to make lots of money but not that much money. The Share price recovered later but was still down for the day.

While he took against Boeing, he hailed another company; SoftBank. He praised SoftBank for investing $50 billion in the United States, which is expected to create 50,000 jobs. He took credit for such a move. Sprint Corp., which is controlled by SoftBank and is the No. 4 U.S. wireless carrier, rose 1.5 percent to $8.17 at the close. T-Mobile US Inc., which has long been mentioned as a possible merger partner for Sprint, rose 1.8 percent to $55.99 on speculation that SoftBank Chief Masayoshi Son’s pledges could aid an eventual deal.