Telling sign of the Trump’s ability to move markets…
The news that was coming out early this morning was that one of the members of the President’s American Manufacturing Council had withdrawn his membership.
Interestingly, the “Manufacturing” company this CEO represents is not the typical fresh out of high school good job in a factory somewhere when the employee works hard but gets paid well. This company is Merk, maker of pharmaceutical drugs. While technically yes, this is manufacturing, we are not sure how many of jobs would be there for low skilled, not highly educated workers.
Nonetheless, Kenneth C. Frazier, CEO of Merk decided he’d had enough with the President:
— Merck (@Merck) August 14, 2017
In true President Trump style, we didn’t have to wait long for a reply. From the President himself:
Now that Ken Frazier of Merck Pharma has resigned from President’s Manufacturing Council,he will have more time to LOWER RIPOFF DRUG PRICES!
— Donald J. Trump (@realDonaldTrump) August 14, 2017
Now here is the interesting part from the markets point of view. Early on, when everybody was still talking about what a strong economy we were about to get, and what massive changes were coming, President Trump’s Tweets could move markets. Companies either wanted to be in a Tweet of something good the president said, but by all means, companies never wanted to be the target of a Tweet that puts the company in a bad light.
Regardless, what happened today was show to have an immediate, knee-jerk reaction with the price of Merk, to the downside, as it looked like President Trump was able to move markets once again. Notice that now, however, Merk has fully recovered from the Tweet and is now gaining on the day.
Makes one wonder if the president has lost his ability to move markets?