📈 Trump Trade 2.0 Erupts

Good morning.

⚡ The Fast Five → CVS posts mixed results, Novo Nordisk shares jump, AstraZeneca tumbles, Amazon still back nuclear deal, Trump victory ignites rally

🔎 Market Trends → Stocks jump on Election Day; S&P 500, Dow futures at record high as Trump elected US president

And now…

⏱️ Your 5-minute briefing for Wednesday, November 6, 2024:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Market Bulls Charge Forward as Election Suspense Builds

All major indexes surged, with Nasdaq leading the pack (+1.4% to 18,439.2), S&P 500 climbing (+1.2% to 5,782.8), and Dow advancing (+1% to 42,221.9).

The Big Picture:

Wall Street showed remarkable resilience amid election uncertainty, with all sectors posting gains led by consumer discretionary and industrials. The service sector's continued expansion suggests underlying economic strength, despite manufacturing's ongoing struggles.

Commodity markets reflected cautious optimism, with WTI crude climbing +1% to $72.18 and gold edging up +0.3% to $2,753.70, serving as a traditional haven amid political uncertainty.

Market Movers:

• AI Fever Drives Tech Rally: Palantir (PLTR) skyrocketed +24% after crushing Q3 expectations and raising guidance, highlighting the sustained appetite for AI-focused enterprises

• Chip Sector Split: GlobalFoundries (GFS) soared +15% on strong earnings, while NXP Semiconductors (NXPI) tumbled -5.2% on weak guidance, illustrating the growing divide between chip makers' fortunes

• Industrial Warning Sign: Celanese (CE) plunged -26% after missing Q3 estimates, suggesting potential headwinds for chemical manufacturers

What They’re Saying:

"With measures of new orders and business activity still at healthy levels, the backbone of consumer spending is likely to remain a sturdy contributor to growth in the fourth quarter and into next year," TD Economics said.

WHAT WE’RE WATCHING
Events

• Thurs. Nov. 7: Dept. of Labor - Unemployment Claims

• Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.

Earnings Reports

• Today: Novo Nordisk, Toyota, Qualcomm, CVS Health, McKesson

• Tomorrow: Arista, Airbnb, Duke Energy, Motorola

MARKET BRIEF
Leading News

Trump's Return to White House Ignites Rally; Tech and Crypto Surge

Why it matters:

The market's reaction to Trump's victory signals a potential shift in economic policy that could reshape investment landscapes - from EVs to digital assets.

The big picture:

Trump's return to the presidency is triggering a massive pre-market rally, with the S&P 500 jumping 2.1% and the Dow surging 2.9%. The victory, sealed by Wisconsin's electoral votes, comes as markets are already pricing in a Fed rate cut.

This political-monetary policy combo is creating a perfect storm for risk assets. Trump-aligned stocks and crypto are leading the charge, with Bitcoin touching $74,000 and Trump Media (DJT) soaring 34% pre-market.

Go deeper:

• The Tesla Effect: Musk's campaign support for Trump is paying dividends, with Tesla (TSLA) shares rocketing 12% higher. The EV giant could benefit from potential policy shifts in environmental regulations.

• Rate Cut Catalyst: Markets are pricing in a 25 basis point cut from the Fed, which could turbocharge the rally if confirmed in Thursday's announcement.

• Tech's Second Wind: High-profile earnings from Qualcomm (QCOM) and Arm Holdings (ARM) could add fuel to the tech sector's momentum.

What they're saying:

"This is a paradigm shift moment for markets," says one market analyst. "The combination of a business-friendly administration and dovish Fed could unlock unprecedented growth opportunities."

The bottom line:

This market setup offers multiple entry points across sectors. Consider building positions in tech leaders and crypto assets while keeping powder dry for post-Fed opportunities. Just remember: even bullish markets need healthy hedges.

Headlines

• CVS posts mixed results, holds off on guidance in Joyner’s first earnings report as CEO (link)

• Key Boeing supplier Spirit Aero raises doubts over ability to continue as going concern (link)

• Novo Nordisk shares jump 8% after Wegovy sales beat expectations (link)

• AstraZeneca shares tumble after reports China unit is linked to insurance fraud (link)

• Amazon Still Backs Talen Nuclear Deal After Regulatory Snub (link)

• 10-year Treasury yield leaps above 4.40% on Trump win (link)

• Bernard Marcus, Co-Founder of Home Depot, Dies at 95 (link)

CRYPTO
Fear & Greed

Headlines

• Bitcoin spikes to record as traders expect Trump’s victory to boost cryptocurrencies (link)

• Donald Trump Wins the Presidency: Here's What It Means for Crypto (link)

• Trump's Triumph Is Also Crypto's: Gensler, Regulatory Clouds Likely to Vanish (link)

DAILY SHARE
On the Socials