Apple soars as ‘anti-MAGA’ firm goes flat after Trump slapdown
The Goodyear tyre company in the US was rocked after President Donald Trump called on Americans to boycott the firm after it reportedly banned workers from wearing red Make America Great Again (MAGA) caps.
Shares in Goodyear plunged 6 per cent after Mr Trump tweeted his call for a ban.
"Don't buy GOODYEAR TIRES - They announced a BAN ON MAGA HATS," Mr Trump tweeted. "Get better tires for far less!"
Don’t buy GOODYEAR TIRES - They announced a BAN ON MAGA HATS. Get better tires for far less! (This is what the Radical Left Democrats do. Two can play the same game, and we have to start playing it now!).— Donald J. Trump (@realDonaldTrump) August 19, 2020
Reports in the US said employees were told they could wear Black Lives Matter apparel but not clothing with logos such as MAGA or Blue Lives Matter.
Shares of the Akron, Ohio-based tyre manufacturer fell as much as 6 per cent following the president's tweet - but rival Bridgestone rose 1.42 per cent.
US media reported that the President's official limo, nicknamed the Beast, runs on Goodyear tyres. But his press secretary, Kayleighy McEnany, refused to comment when asked if the Beast would now be run on different road rubber.
"I don't comment on national security matters," she deadpanned.
Goodyear claimed, however, that its policies had been mischaracterized and that it consistently had discouraged campaigning on company property because of the potential for conflict.
"We ask that associates refrain from workplace expressions in support of political campaigning for any candidate or political party as well as similar forms of advocacy that fall outside the scope of racial justice and equity issues," the company announced in a statement.
It came at a time of great excitement in corporate America as Apple smashed through the $2 trillion ($A2.8tn) valuation mark and the NASDAQ and SAP500 market indicators hit record highs, despite unprecedented post-Depression market conditions.
Apple became the US's first $2 trillion company on Tuesday - almost two years to the day after it became the first company in the world to reach the $1 trillion mark.
The iPhone maker reached the latest milestone when its stock crossed the $A650 mark.
Apple shares have surged nearly 60 per cent this year as the company overcame the shutdown of factories in China that produce the iPhone and the closure of its retail sales sites amid the coronavirus pandemic.
Market observers are still struggling to understand the strength of Wall Street in the midst of the COVID pandemic, shocking unemployment, race riots and great uncertainty surrounding the election outcome.
The astounding optimism propelled the market to a new high, pushing it past a milestone reached only six months ago, when the coronavirus was just beginning its harrowing journey across the United States.
"This market is nuts," said Howard Silverblatt, senior index analyst for S&P Dow Jones Indices.
The New York Times said investors have cast the tidal wave of bad news aside to focus on any signs that the worst might be over. They have also been emboldened by the Federal Reserve's steadfast support of the markets and unwavering embrace of low interest rates.
"It seems to me that markets have decided this economic environment is the best of both worlds: enough economic recovery to support corporate earnings and prevent a substantial recession, but not so much that the Fed would have to raise interest rates and tighten monetary policy," said Scott Clemons, chief investment strategist for private banking at Brown Brothers Harriman, an investment bank.
Originally published as Apple soars as 'anti-MAGA' firm goes flat after Trump slapdown