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Trump's Instant Influence Over the Stock Market

On Thursday afternoon, President-elect Trump took aim at yet another car company's plans for foreign production. His latest target, Toyota, revealed plans back in 2015 to build a new manufacturing plant in Guanajuato, Mexico. Trump's tweet about the matter stated, incorrectly, that: "Toyota Motor said it will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax." This comment came just a few hours after the president of Toyota, Akio Toyoda, told The Wall Street Journal that he'd like to work with the Trump administration and that their goals were oriented in the same direction.

The article said that Trump's group had made no comments about Toyoda's statements. Within a few hours, that had changed. By the next day, Toyota's stock had dropped 0.7% before rebounding to open Friday down 0.4%.

Twitter: @CNBC

Trump's tweet looked familiar and so did the market's reaction. On Tuesday, Trump targeted another auto company: "General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A.or pay big border tax!" Following that threat, GM saw only a small and brief drop in stock price.

On the same day, however, Ford took advantage of the attention to domestic manufacturing and announced that it would cancel plans for its new plant in Mexico, instead focusing the money on its existing efforts in Michigan. Their stock jumped 2.5% after the news.

While Ford celebrated gains from its announcement, other companies had already felt even more severe pain from Trump's social media machine. In December, he tweeted: "The F-35 program and cost is out of control. Billions of dollars can and will be saved on military (and other) purchases after January 20th." While that won't be proven true until his term officially begins, the company making the fighter jets immediately saw billions of dollars move. Lockheed Martin's stock fell 4% after the tweet and, almost instantly, $3.5 billion disappeared from its value.

With another tweet, announcing that he would cancel the new Boeing Air Force One order, Trump sent Boeing's stock falling 1.5% (it eventually recovered). In fact, the entire defense sector of the S&P 1500 dropped by the same percentage after his F-35 tweet.

It is totally unclear what effects Trump will have on domestic and global markets in the long run, but these instant, short-term bursts of movement triggered by 140-character messages signal a future of volatility for companies interacting with any part of Trump's plans. Whether the consequences are positive or negative for a company's market value, it is apparent that the Trump effect is becoming a strategy that companies will have to learn to play in either direction.

He will also be an important factor for investors weighing stock trades and looking for potential buys. The hit to Boeing provided a small buy window that will have already paid off for anyone brave enough to have nabbed it. Investors will have to examine more closely their portfolios' connections to the Trump administration. With such rapid market reactions already evident, Trump's Twitter account is looking like an additional and unprecedented volatility factor for 2017.
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Markets In Recovery as Investors Accept Trump Presidency

Although a lot of us may still be taking some time to adjust to the reality of Donald Trump as president, but the markets seem to have accepted American's new reality. Last night, the U.S. markets took a sharp dip as Trump began closing in on a major and unexpected victory. At one point last night, there were fears the dollar would sharply decline the way the pound did after the EU referendum. But does not appear to be the case. The sharp decline appears to be over and U.S. markets have begun rising again. The S&P and Dow Jones were up 1% BBC reported today. There are analysis guessing that Trump's relatively calm acceptance speech calling for unity did enough to quell the markets' fear of a total meltdown.

Meanwhile, the Mexican peso hit an all-time low following Trump's election. The currency declined more than 12 percent against the dollar, New York Times reports. This comes in reaction to Trump's signature proposal to build a wall along the Mexican border and crack down on immigration reform.

Interestingly enough, health-care stocks are projected to increase in value in the news of a Trump presidency. Health-care stocks have steadily been declining over the years as Obama, and Clinton repeatedly promised to continue, enacted major healthcare reform. But now with healthcare reform (dare we even say, reversal) completely off the table, investors are said to grow more confident in investing in the stocks again.

"The case for health-care stocks is clear cut," said Eddie Perkin, chief equity investment officer at Eaton Vance, told the Wall Street Journal. "It has been the worst-performing sector in the S&P 500 year-to-date, and the removal of political risk is a near certainty."

Credit to the overall positive outlook for the markets can also be given credit to Clinton's and Obama's unity-emphasizing concession speeches, highlighting the peaceful transition of power being a cherished hallmark of the American democracy.

For now, the markets are stable. But it's unclear what announcements or behavior we can expect from Trump in the lead up to inauguration day, he is currently assembling his cabinet team and is expected to meet with President Obama in the oval office on Thursday.

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Why Did the Market Crash When Trump Was Elected?

As soon it begun to appear Trump would win, stock and futures markets around the globe begun to tank. Many are chalking it to surprise--the similarly surprising Brexit vote earlier this year caused a two-day rout in the equities market that reverberated in a decline of stock prices everywhere, for a short while. But America is more important and there's little chance Trump will be fading away from the headlines soon. Here's a few things going up and down right now:

Futures

Trading on stock futures on the S&P 500 halted in the middle of election result reporting, as a 5% drop triggers an automatic shutdown of trade. Why? "Many investors view Mrs. Clinton as the "status quo" presidential candidate," The Wall Street Journal reported. Trump, for obvious reasons, is considered volatile and his lack of experience on the political stages leaves investors around the world little to cling on to.

Currency

The Mexican peso slowly begun to crash as it appeared Trump would overtake Clinton's predicted lead in the polls. Throughout the election, Trump's oft-repeated threat to "tear apart" NAFTA and other trade agreements between the U.S. and Mexico have caused investment in the Peso to often mirror Trump's chances to win. On the other hand, both the yen and other currencies surged quickly after the election results poured in. Why? Unsure about what's happening over here, people are buying up currency in countries that are historically and politically very safe, like the yen, the Swiss franc, and the Australian dollar.

Trump-friendly Industries Soar

On the other hand, shares in major mining companies, pharmaceuticals groups, and defense firms are rocketing upward. Throughout the campaign, Clinton has promised to reform the Affordable Care Act by pressuring pharmaceutical companies to lower their prices in response to criticisms of how much money it was costing small businesses. Since Trump plans on scrapping it altogether, drugs makers like Novo Nordisk and GlaxoSmithKline can rest easy. Also on the up? Defense companies, excited by Trump's demands that other countries start "paying their share," are also on the up.

Here's a great list of what stocks you'll want to buy in the wake of Trump's win!

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And the Winner is...Huh? Will Trump Deliver the Financial Goods?

In perhaps the most startling presidential election in U.S. History, Donald Trump, once-underdog, once-reality man, we will now be calling president. After a perilous fight against Hillary Clinton, Trump supporters are ready for change. And they want it now.

Throughout his campaign, Trump been infamous for his strong opinions, the center of which revolves around the economy.

According to his campaign website, he plans to "create a dynamic economy that will create 25 million new jobs over the next decade," and "for each 1 percent in added GDP growth, the economy adds 1.2 million jobs." The wealth divide and unemployment in the country has been an issue that has fluctuated throughout our presidents.

When you think of economics, you're probably going to think of Reagan and "Reaganomics" during the 1980s. This concept practiced "supply-side economics," gave tax reliefs to the rich and enabled increased spending. This allowed for the stimulation of the economy and increased job opportunities.

So what will "Trumponomics" look like?

While it's not super specific how the economy is going to create 1.2 million jobs with every percent of GDP growth, the concept seems nice. The more our country produces, the more jobs there will be. Seems like simple enough math. He also plans to create a pro-growth tax plan and "America-first" trade policy.

Trump's concepts come from the statistics about low labor in the U.S. Low wages, low GDP growth, low recovery. Trump plans to kickstart the American economy by getting able-bodied people back into the workforce.

Can he deliver? Only time will tell. In the meantime, here's how to brush up on Trump's economic policy and more.

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