Trump's Extraordinary Press Conference
It was an extraordinary news conference that made for an extraordinary session for the stock market.
Donald Trump raised questions about pricing power and profitability, the heart of the stock market and ultimately the driver of higher share prices. As Commander-in-Chief, there is a fiduciary responsibility to make sure that taxpayers spend as little as possible for anything from fighter jets to medicines. Naturally, his comments on spending and the need for new bidding procedures spooked drug and biotechnology stocks.
Donald Trump didn’t say anything new during the press conference but reminded the business world that things will be different, including getting a shout-out like Ford and Carrier. United Technologies got a shout-out on Wednesday.
The market is going to have to learn to deal with these press conferences for the next four years.
Beware Capping Corporate Profits
Ironically, the early air pocket provided the perfect backdrop to test nervous investors and big money that’s been waiting for an entry point.
The fact stocks rebounded and gathered momentum into the close was amazing. Especially the NASDAQ-it was weighed down by the aforementioned biotechnology stocks.
This all underscores the fact that the market thinks tough talk won’t equate into a trade war or restrictions on corporate profits.
Wall Street knows the majority of Republicans in Congress have been against Medicare-negotiated drug prices, and Tom Price even voted against such a policy.
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