Executives at America’s largest companies are increasingly discussing the presidential election with investors compared to previous election cycles. According to FactSet, the word “election” was mentioned on 100 earnings calls of S&P 500-listed firms between Sept. 15 and Oct. 31, the highest number of mentions during that period since 2004. The U.S. presidential election is scheduled for Tuesday, Nov. 5.
As Americans prepare to vote in a closely contested race between Kamala Harris and Donald Trump, concerns about the economy are at the forefront. White-collar leaders are evaluating potential policy impacts on their businesses and expressing unease about the general instability associated with the political season.
Several companies have noted a sense of unpredictability among consumers and business clients due to the presidential race. For instance, Tractor Supply’s CEO mentioned that customers are expected to remain cautious during the election period. Southwest Airlines anticipates reduced air travel around Election Day, while Royal Caribbean expects no long-term impact from presidential elections on booking trends.
In addition to the election, market participants are closely monitoring the Federal Reserve’s upcoming monetary policy meeting. Stanley Black & Decker’s CEO highlighted both the election and interest rates as factors contributing to anticipated market volatility.
The CFO of Xylem mentioned that the election is causing a pause in the industrial market, while Republic Services’ CEO expressed optimism despite a sense of paralysis in an election year. Overall, corporate leaders are observing the impact of the election on various sectors, with some companies experiencing changes in business dynamics.
Despite the heightened focus on the election, some mentions of “election” were related to events like health care enrollment periods. Companies such as Tyler Technologies and American Express reported minimal impacts from the election on their operations.
Equity Residential’s CEO emphasized the importance of state and local government over the election outcome for their business. However, this election cycle has seen a significant increase in discussions about the election among corporate leaders, with a notable rise in mentions compared to previous years.
D.R. Horton is witnessing buyers adopting a cautious approach due to expected lower mortgage rates in 2025 and election-related stress. The company is implementing strategies to stimulate demand and address buyer sentiment affected by the election.
In conclusion, the upcoming election is influencing various aspects of the business landscape, prompting companies to navigate uncertainties and adapt their strategies accordingly.
