The presidential election is on the minds of Americans across the country, and it’s also a hot topic for executives at America’s largest companies. In the lead up to Election Day, discussions on earnings calls about the implications of the election have been at an all-time high.
According to FactSet, the word “election” was mentioned on 100 earnings calls of S&P 500-listed firms between September 15 and October 31, the highest number since 2004. The election has become a focal point for both everyday Americans and white-collar leaders, as they consider how potential policy changes may impact their businesses.
However, amidst the uncertainty surrounding the election, many companies are reporting a feeling of caution among consumers and clients. While some, like Tractor Supply and Southwest Airlines, anticipate a slowing of certain activities around Election Day, others, like Royal Caribbean and Republic Services, remain optimistic about the future.
Beyond the election, market participants and business leaders are also closely watching the Federal Reserve’s monetary policy meeting. Stanley Black & Decker’s CEO mentioned both the election and interest rates as factors contributing to the expectation of “choppy markets” in the coming months.
While the election has created a sense of unease in some industries, others are taking a more pragmatic approach. Amidst concerns about economic stability, leaders like Eric Ashleman of Idex acknowledge that the election hasn’t helped the economic backdrop recently.
Overall, this election cycle has attracted an unusually high level of attention from corporate leaders. The engagement from America’s largest firms is evident in the number of mentions of the word “election” on earnings calls, which is significantly higher this year compared to previous cycles.
As we approach Election Day and its aftermath, it’s clear that the impact of the election will be felt across various sectors of the economy. Stay tuned to Extreme Investor Network for more insights and analysis on how the election results may shape the economic landscape in the weeks and months to come.