You can count Art Cashin among those who think Donald Trump’s Amazon tweets were the proximate cause for Monday’s turmoil that saw U.S. equities get off to their worst start to a second quarter in 89 years.
Of course anyone with any sense knows Trump (or things that generally have to do with Trump) is the main impediment for the market from here, but there’s a (shrinking) contingent of folks who are still desperately clinging to the idea that he’s not effectively tweeting away his own cherished rally. We contend that the President is deliberately tanking Amazon shares in an effort to send a message to Jeff Bezos about the Washington Post’s editorial line.
Whether or not Trump appreciates just how critical Amazon is to the broad market is an open question, but if he didn’t know headed into last week, he damn sure should be acutely aware of it now. Or maybe not, because he was back at it with the Amazon accusations on Tuesday morning despite yesterday’s market malaise, and his contention that Jeff Bezos effectively owes the Post Office “many billions” immediately hit the shares which are struggling again after posting their worst losses in more than two years to start the week.
Then, just a few minutes ago at the White House, he said this:
The U.S. government loses $1.47 every time it delivers a package for Amazon.
That’s apparently based on a “study”.
So that brings us back to Art Cashin who on Tuesday says the “selloff has gotten the White House’s attention.”
Clearly, that’s a debatable proposition or if it’s true, it certainly hasn’t stopped Trump from continuing to go after Bezos. Make of this what you will, but do note the bit where Art suggests that had Trump kept tweeting, “it could have doomed the week.”