Executives at some of the biggest companies in America are speaking openly with investors about the upcoming presidential election more than they have in previous years. According to data from FactSet, the word “election” was mentioned on 100 earnings calls of S&P 500-listed firms between September 15 and October 31. This is the highest number of companies discussing the election during this period since 2004.
With the U.S. presidential election looming, the economy is a major concern for both voters and business leaders. Companies are considering how potential policy changes could impact their businesses, leading to a sense of uncertainty during this political season. Richard Tobin, CEO of Dover, mentioned on the company’s earnings call that caution is prevalent due to the election and other factors.
While very few executives mentioned specific candidates like Kamala Harris or Donald Trump by name, discussions about the broader implications of the race were common. Many companies noted that consumers and business clients were feeling a sense of unpredictability during this time. For example, Tractor Supply’s CEO Harry Lawton stated that customers were expected to remain cautious, similar to previous election years.
In addition to the impact of the election, market participants and business leaders are also closely watching the Federal Reserve’s monetary policy meeting. Stanley Black & Decker’s CEO Donald Allan highlighted both the election and interest rates as factors that could result in volatile markets in the first half of 2025.
Some companies, like Xylem and Republic Services, have seen a pause in industrial projects and business activity as a result of the election. However, despite the uncertainty, there is optimism heading into the end of 2024 and the start of 2025. Leaders like Idex’s CEO Eric Ashleman noted that the economic backdrop has been challenging recently, with factors such as hurricanes and strikes affecting job growth.
While some companies have felt the impact of the election on their businesses, others like Tyler Technologies and American Express have reported minimal effects. American Express CEO Stephen Squeri emphasized the company’s long history of operating through various election cycles. Equity Residential’s CEO Mark Parrell highlighted the importance of state and local government policies on the company’s operations.
Overall, the 2024 election cycle has sparked significant engagement among corporate leaders, with a higher number of companies discussing the election compared to previous years. The uncertainty surrounding the election has led to companies like D.R. Horton offering incentives to boost demand and navigate the current economic landscape. Despite the challenges, many leaders are hopeful that the conclusion of the election will bring more clarity and stability to the business environment.
