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Prez’s Private Concerns Over Amazon Spark Stock Market Kerfuffle

There is no doubt that Donald Trump is a man whose every word, especially on the subject of business, will not be taken lightly.

It’s a reputation that the President earned long before he was sitting behind the desk in the Oval Office, back when Trump’s name was synonymous with aggressive business models and shark-like real estate instincts.  Trump simply understands how best to get it done, and the confidence that the American people have in the CEO-in-Chief seems to be expanding incredibly.

The latest reading on consumer confidence could bring a new 18-year high, while a report on consumer spending will reveal whether those bullish views are starting to translate into brisker sales at the cash register. Also look for the third and final estimate of fourth-quarter economic growth and a new measure of home price increases.

Consumers confidence last month surged to the highest level since November 2000 on strong job and income growth, and solid gains in stock and home prices. The market’s plunge this week occurred after the latest consumer survey. Spending, by contrast, has been mixed. Economists expect the Conference Board on Tuesday to report that its consumer confidence index edged up to a new 18-year high in March.

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Having shown that his business prowess has certainly translated into American excellence, the weight of the President’s words have found a renewed gravity in the future economic landscape.  That’s why, when Trump spouts off, the market listens.

Just such an incident occurred this morning, when the Commander in Chief privately mentioned his disdain for parts of Amazon’s business model .

Capitol Hill wants Facebook’s blood, but President Trump isn’t interested. Instead, the tech behemoth Trump wants to go after is Amazon, according to five sources who’ve discussed it with him. “He’s obsessed with Amazon,” a source said. “Obsessed.”

What we’re hearing: Trump has talked about changing Amazon’s tax treatment because he’s worried about mom-and-pop retailers being put out of business.

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    A source who’s spoken to POTUS: “He’s wondered aloud if there may be any way to go after Amazon with antitrust or competition law.”

  • Trump’s deep-seated antipathy toward Amazon surfaces when discussing tax policy and antitrust cases. The president would love to clip CEO Jeff Bezos’ wings. But he doesn’t have a plan to make that happen.

This sparked a run on the retailer’s stock price, and sent a ripple throughout the entire technology sector of the stock market.

Amazon shares fell 4.3 percent Wednesday after the report, wiping out nearly $31 billion in shareholder value.

Trump has blasted Amazon on social media in the past, saying the e-commerce company is hurting the retail industry and causing U.S. job losses.

“Amazon is doing great damage to tax paying retailers. Towns, cities and states throughout the U.S. are being hurt – many jobs being lost!,” he posted on Twitter in Aug. 2017.

This move caps a wild few weeks for the market, which was shocked by a number of topsy turvy moves in recent days.

 

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