Kissing the @ss of the president is probably a wise move, Mr./Mrs. CEO.
New research shows that visiting the White House during President Obama's reign led to a nice pop in the stock price of the company coming to talk shop. According to a new study by the National Bureau of Economic Research, shares of companies whose top executives visited White House officials performed nearly 0.9 percentage points better than the overall stock market after the visits. The authors of the report, finance professors Jeffrey Brown and Jiekun Huang University of Illinois at Urbana-Champaign, say the stock market lift occurred from 10 trading days before the meetings to 40 trading days after the visits. They analyzed 2,286 meetings between corporate executives and federal government officials at the White House from 2009 through 2015.
The study was first reported by Bloomberg.
Unfortunately for these two scholarly fellas, they will unlikely be able to do a study under the Trump presidency. Trump ended President Obama's practice of making the visitor log public. But we felt compelled to do an unscientific study looking at stock prices of companies this year whose CEOs have met with now President Trump. Getting in tight with any president could be beneficial to corporate planning, and our unscientific study suggests investors think hanging out with Trump is generally a winning strategy, too.
Some well-known CEOs who have met with Trump this year, and their average year-to-date stock price performance is +5.3 percent
Read This Or Lose Out
Apple insiders dumping stock: Apple's head of retail, Angela Ahrendts, last week sold 75,000 shares of Apple stock for a cool $11.1 million, while general counsel Bruce Sewell dumped 67,500 shares to rake in $10 million, reportsApple Insider.
Apple's red-hot stock is never going down, ever again. And if you believe that, I have a bridge to sell you TODAY.
Speaking of market complacency: Don't headlines like the below from The Telegraph worry the heck out of you, bulls? Making money in stocks has become too easy. And when that happens, it's often right before stocks fall off a cliff due to some unforeseen development.
Starbucks ex-CEO gives a presidential nominee speech, oops, commencement speech:Starbucks(SBUX) - Get Report executive chairman Howard Schultz hopped to the podium on Monday evening to give the commencement speech at Arizona State University. Schultz urged the graduating class to create clean energy jobs, end racism and dream big, TheStreetreports.
Shoveling coal is a dirty gig anyway.
Save the date: Celine Dion revealed she will sing her timeless classic "My Heart Will Go On" on Sunday, May 21, on ABC to commemorate the tune's 20-year anniversary. Listen, I love the song and so do you. Don't deny it, just tune in.
Here is Dion last summer belting it out.
Here comes the new Amazon Echo: Amazon unveiled its Amazon Show device on Tuesday. While it looks rad, here's whyTheStreet thinks you should wait to buy the home gadget.
Coach could clean up with Kate Spade:Coach (COH) may learn over time that it made one sweet deal for rival Kate Spade (KATE) , TheStreetreports. We are talking at least a 40 cents a share profit tailwind.
(This article originally appeared on May 9 on Real Money, our premium site for active traders. Click here to get great columns like this from Jim Cramer and other writers even earlier in the trading day.)
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