Trading on Trump’s tweets
Wall Street traders have a new challenge: dissecting Donald Trump’s tweets, said Eamon Javers in CNBC.com. Trump shocked the defense industry this week when he tweeted that the government should cancel its Air Force One contract with Boeing, citing what Trump described as ballooning costs. More shocking? It took markets 10 whole seconds to react, with traders briefly sending Boeing stock down 1 percent. Ten seconds might as well be an eternity in our “era of superfast algorithmic trading.” But some “are already tackling the problem.” One market analysis firm is developing a program that zeroes in on tweets that come from Trump’s Android phone, which appear to reflect his personal opinions as opposed to those of his staff. Zachary David, who works for an analytics consultancy, says it’s only a matter of time before someone develops a “predictive algorithm” that instantly trades on the tweets.