Another day, another market-moving tweet from Donald Trump.
Moments ago, the president-elect, following up on his recent spat with Lockheed over the F-35, which one week ago Trump said its "program and cost is out of control”, continued his crusade on over-budget government programs, when he tweeted that "based on the tremendous cost and cost overruns of the Lockheed Martin F-35, I have asked Boeing to price-out a comparable F-18 Super Hornet!"
Based on the tremendous cost and cost overruns of the Lockheed Martin F-35, I have asked Boeing to price-out a comparable F-18 Super Hornet!
— Donald J. Trump (@realDonaldTrump) December 22, 2016
The immediate kneejerk response has been to send Boeing stock higher, while LMT has slide over 1% in the after hours, as Trump once again moves stocks with his tweets.
Earlier in the day, following Trump's tweet that "the United States must greatly strengthen and expand its nuclear capability until such time as the world comes to its senses regarding nukes", the result was a surge in Uranium miners surging, as shown in the following ETF.
Prior to that, when Trump's team announced that Carl Icahn would be named special adviser to help overhaul federal regulations, that in turn sparked a rally in merchant refiners and sent shares lower in industries the activist investor has publicly rebuked.
As Bloomberg notes, "the sharp share fluctuations highlight the market-moving ability of both Trump’s Twitter account and his cabinet appointments. Since his election victory in November, he’s rattled industries from aerospace to health-care, using his social media presence and business-friendly appointments to create and erase billions of dollars of market value at a moment’s notice."
Expect even sharper market reactions as more algos and quant shop train their algos to only focus on Trump's twitter feed in the future.