growth and how that all plays out but obviously, we'll be watching all of that in the weeks and months to come. we've been talking about the markets all morning long, what this is going to mean. we've been talking about the policies all morning long, and we will continue with that. right now, we're going to hand things over to "squawk on the street," but thank you for joining us this morning, and we will see you right back here tomorrow. take care. ♪ good wednesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber at post nine of the new york stock exchange. stocks look to open at all-time highs. donald trump's decisive and historic political comeback. the dollar and small caps are soaring. volatility collapses even as control of the house still remains unknown. road map begins with the stock surge following that historic election, donald trump becoming the first in over a century to win back the white house after losing it. plus, we're keeping an eye on tesla shares because they're

on a tear. of course, elon musk was amongst trump's biggest and most vocal backers and investors are betting tesla will benefit from thinks victory. also on earnings watch, keep an eye on shares of cvs. they're rallying. the company does hold off on providing fourth quarter guidance. meanwhile, shares of super micro, they're headed in the opposite direction as it says it has no timetable for giving us its annual results. let's, of course, begin with futures, surging today after donald trump's stunning political comeback. nbc news projects he has been elected the 47th president of the united states, defeating vice president kamala harris. trump secured a second term after surpassing the 270 electoral votes needed for victory and he's on track to win all seven battleground states in a race that many pollsters predicted would be neck and neck. jim, i'm reminded of what george bush once said about a midterm. this was a thumping. >> this really was. this is what we used to call, in political science, a critical election, meaning there's a

watershed that changes pretty much everything, and means that it goes from, say, in this case, liberal to arch right wing, and i think that we should realize, from our point of view, that there are two markets, not one market. there's one market that we all know, which is the stock market, and that is screaming. the other market that is absolutely cratering is the bond market. the bond market is somewhat larger than the stock market, and we have to recognize that some of the prices we see could be undone by the bond market as they would be, david, any other day of the week for the last, say, i don't know, hundred years. >> yeah. certainly rates are going to be an important component of the tapestry that investors try to consider, and we'll see whether that treasury remains -- yield remains elevated. >> it's not being talked about. >> well, we've talked about the possibility, certainly, of a trump presidency, including significant tariffs, which might be inflationary.

although again, much of this remains unclear because you don't know what you're going to get once he actually takes office, and taxes coming down, which conceivably will send the deficit higher, which will also potentially pressure yields and prices, obviously, coming down, so we'll see. but this is certainly a reaction, one that we have been seeing a bit in the bond market, certainly in the weeks prior to the election as many anticipated. >> that's what it turns out. the october thumping of the bonds may have been anticipating this. but if you go back to what you were saying, carl, when you have this kind of repudiation of a regime and the repudiation -- the regime is regarded as overly regulated. it's anti-business. as anti-growth. and this administration is regarded as pro growth, anti-regulation, and frankly, all systems go for us. the problem is, as david just said, you can't pay for it, but as -- we had some great guests. can i just say you did an unbelievable job? you're here. it's so exciting for me.

i mean, come on. he's here. >> also, he looks great. >> as do you both. >> no, i look like -- but i will say we have to accept the fact that richard fisher, who's, like, a great economist and also a great businessman, is saying at some point, we're going to have to pay the piper for the budget deficit, and i think that probably some people say, you know what? never going to happen. we're going to grow our way out of it, trump, and then people look at the screen and say, oh my. where are they going? >> that's where the house and obviously carl mentioned that at the top of the broadcast, the house becomes important because if republicans maintain control of the house, you'd expect that he can move tax legislation pretty quickly. >> right. >> given the majorities in both the senate and the house, and we may be getting answers on the deficit and what that's going to look like. >> we saw yields come off a little bit late last night when this -- the house became a little cloudier. >> well, i think that you have to have -- there's got to be some people in congress who just

say, you know what, we're headed to 7%. the problem is, until you get to 7%, people don't take action. 7% being the level i've always felt that is the end of the housing market. now, for instance, when you see rates the way they are today, we should be selling the housing stocks aggressively. every single time that rates have gone this level, we sell it. i don't think today we say to yourself, you know what, people buy houses anyway because president trump is now the president. that doesn't work. so, everything goes up. and then, by midday or tomorrow, we start looking at what shouldn't have gone up. what i'm trying to get people to do is anticipate what should not have gone up, because of the bond market. >> so, you are in a sell the news mode to a degree? >> to the ones that are directly impacted. if you were looking at mortgage rates, and you felt that they played a role in housing, as we know they did during the month of october, then i think you want to double your sell on housing, because these are about

rates, and tomorrow, we'll come and say, mortgage rates just went up big. what's that have to do with toll, with horton, with lennar? there is a market that is directly dependent on the bond market. >> without a doubt. and that will have an influence. that said, if you lowered corporate tax rates, you can see what the potential reaction would be. obviously, the russell is having quite a -- well, we haven't even started trading yet but looks to be up substantially. >> the small business is the backbone -- larry kudlow -- of the united states. maybe larry kudlow becomes treasury secretary. >> i don't think that's been discussed as a real possibility, but we'll certainly -- >> chief national economic advisor. >> -- spend plenty of time speculating on who the economic team will be for president-elect trump. >> the people who were with president trump the first time around, for the most part, are not. >> that is true. but it will still be equally important as to who he appoints for us to treasury, the name -- i mean, paulson, obviously, has been a guest on our air many times, john paulson.

scott besson has been a name people have thrown around. who knows? that speculation will start in earnest very soon, i'm sure, and it will be important, to your point, jim. >> we have to try to anticipate everything. there's so many winners. i'm not trying to be a downbeat about stocks. please remember that everything is going opposite. you have an opportunity to be able to scale out of stuff. >> i'll tell you one winner, guys, is the m&a market. >> okay. >> banks up six this morning. >> you're going to be more relevant than ever. >> thank you, jim. >> no problem. >> i've been looking for that opportunity. >> i just thought i should throw that in. >> my old beat of m&a is going to get quite busy. in fact, even this morning, a couple of ceo conversations i had in the media industry, for example -- >> is david zaslav a big winner? >> i think the flexibility that many of these companies will now have that they felt they did not under the current administration is going to be significant, and it should allow for a lot more

potential deals in industries that are desperate for some level of consolidation. obviously, when it comes to our parent company, we've been talking only recently about this possibility, strong possibility, of a spinoff of the cable networks of nbc universal. that includes ours. happy to go into that in more detail, but if you're comcast, does it allow, for example, for you to consider a charter deal? >> exactly what i was thinking. >> because that's certainly something. i mean, you can go down a lot of roads. guys, remember, exxon and chevron, i'm just to put this in perspective, talked about a deal. now, there is no way you could have ever imagined a deal like that previously. i'm not saying in any way that is likely to happen. but it's the kind of thing that you can contemplate again because there is not going to be nearly the strictures on consolidation that there have been in the administration. >> you're right. i look at -- i've known jonathan kanter for a long time, and i won't try to place him today in another job, but i can tell you the job he has currently is not going to be the one he has.

he's the head of antitrust for the justice department. they have been -- justice department is very anti-apple, very anti-alphabet. they have, at one point, they were looking at nvidia, not even clear. but i will tell you, that's all over. there was a case -- >> well, and also, by the way, back to entertainment, the apple or amazon could step up for the big purchases that we could not have imagined under the current administration. >> and amazon. >> yes. i said amazon. >> i don't think lina khan is staying. >> she can stay as a commissioner, but she will not be chairman. >> she doesn't care for amazon, and i think that the prime people are going to take over, david, which is pretty much everybody in the country. >> when it comes to m&a and consolidation. that said, we can see one-offs -- >> including albertson's? >> that's moved up. we can see one-offs conceivably where as we know from time warner and at&t, if president trump, president-elect trump, takes a dislike to it, you may

see outcomes you would not have anticipated. >> but everything's now -- >> broadly speaking, believe me, everybody is starting to strap in right now and get ready. >> i would say in the -- in terms of david zaslav and warner bros. discovery, i think everything is now possible, and no one could buy them. >> really? >> okay. >> what else does he have to say? >> it's definitely -- >> everyone watches the damn show. sorry. >> it's broadening our range of what is possible. jim, as for trip lines, solar is down ten premarket. we got some downgrades of five below. retail, tariff is a first order effect. >> i think five below is now ten below. no one's going to want to spend $9 for the stuff that's sold there. 50 to 60% of their business is sourced from china. shark ninja is now like the shark at the end of, well, let's

just say thar she blows. shark ninja. >> oh, yeah. >> because they're almost entirely china. we need a bigger boat for that. >> i mean, carl, i don't know what are the expectations when it comes to the i.r.a. and potential rollbacks to potential revisions and the inflation reduction act, which included a lot of things in terms of dealing with climate change, but you can see the reaction there. >> yeah. >> that said, it's interesting, of course, tesla shares are up sharply. we said that at the top. elon musk, certainly a big beneficiary here of his significant support for president-elect trump. but he still sells evs, which until recently was not something that was -- >> but david, you favor american evs. unionize. that's out. that's out. >> right. >> remember when the head of uaw -- >> he does make a lot of them in china. they don't get sold here, though. >> the tariffs are going to be -- >> that was the other question amongst some circles last night. is this positive or negative for

legacy oems in this country? >> i think it's very negative. but look, in the end, mary barra will buy back every share of that stock. ford has no buyback and that's a very big disadvantage. one of my newfound favorites should not be up today because of the chips act and the stock is up very big, and if you can figure out why that's up very big, because they don't -- they don't do better from protectionism. the chips act, johnson wants to scale back the chips act, they are the chips act. that stock being up today is a little fanciful. >> little questionable? >> questionable. >> yeah. not shark ninja. >> no. shark ninja is, whoa, turtle. >> ninja turtles? >> it's a ninja turtle. >> sharks have to move forward to stay alive. >> what we have here is a -- >> a trout ninja. maybe bass ninja.

>> so many interesting metrics coming in from exit polling last night. remarkable. just gives you a sense of how much of a drubbing this was for the democrats. our senior washington correspondent, eamon javers, joins us from the nasdaq to talk about the president-elect's victory. good morning. >> good morning to you, carl. if i could, let me just throw a little bit of cold water on this sort of antitrust m&a boom time that you guys are talking about. one thing to watch for here is who donald trump puts in positions of power over antitrust, and the question is, how do the populist conservatives who like a strict antitrust enforcement fit into this administration? i'm not sure i see a world where donald trump says, you know what, forget it, we're not going to push forward with breaking up google. we think amazon is great. we think apple is great. the tech giants, in particular, i think, will still be in the cross-hairs, and personnel is policy. watch for those populist republicans to try to get their arms around antitrust policy, and what that means is maybe,

hey, these guys are big corporate elites, let's not let them get bigger and more powerful. let's use government strength to get the result that we want for the republican working class voters who elected us last night. that's one thing to watch. the other thing i would say to watch for is the future of jay powell. we had scott on "squawk box" this morning, a key trump economic advisor, and he sort of walked back his idea earlier of having, you know, sort of a shadow fed chair out there. he said he was slightly misquoted or taken out of context. he said, what we should do is nominate a fed chair early. jay powell's term is up in may of '26, so the question is, how early is early? if you nominate someone really early, you're talking, effectively, about a shadow fed chair. donald trump is somebody who has suggested that he wants the president, that is himself, to have a voice if not control over monetary policy in this country.

does jay powell have the appetite to fight donald trump on that? how would jay powell feel about an early nomination of a fed chair who comes into power with a different directional sense and is talking to the media and undermines powell's ability to communicate? all of that, i think, is still tbd, so we've got to watch for a lot of these personnel decisions. that's going to start to shake out in washington and in mar-a-lago over the next coming hours, days, and weeks, guys. >> eamon, congratulations on being the first person i absolutely know that hasn't gone to sleep since monday. i do want to push back a little bit on the m&a world. the people who are in charge right now, antitrust, ftc, they are idealogs and they are hell-bent against companies that make a lot of money in this case. i think there will be animus by one-off, one off amazon by the u.s. postal contract, but the people who will take over the agencies are not ideologs and

they're not necessarily populists. they are people who feel, amazon prime is a great thing for america because the prices are lower. alphabet is doing interesting things. they will be -- the first case can still happen, remember, because that was brought by antitrust under trump. >> the amazon case or the alphabet case? the publishing case? >> i just think, in general, i'm going -- the -- i want to push back on the animus. when i speak to the people who work at those agencies, they're anti-business and i know that we can be pro-consumer and therefore be against big companies, but anti-business is the agnathema of an apple. i don't see apple coming under fire from anybody in this administration. >> anti-business and the populist republican view is anti-corporate elite, seeing corporate elites as people who don't share our values, who are embracing dei and transgender rights and those sort of things. you've seen this outburst of populist rage against american

companies, and you've seen donald trump willing to sort of direct his fire, as you say, one-off, on individual companies. you saw john deere in the cross-hairs recently, but google -- this google case is just not going away. and i do think that the republican pop lists will make a run at some of these jobs inside this administration, so we just got to watch -- i'm not saying you're totally wrong or even mostly wrong. i'm just saying we got to watch the personnel here and see who gets these jobs. >> there are two different things at play here. there's one in terms of, as you point out, sort of the focusing on monopolies or the enormous power of these platforms to your point and whether or not populists will continue to take aim. another is just broad consolidation from an antitrust point of view that i would argue is going to be far more lax under a coming trump administration. but you're right, and jd vance has some input on the administration's appointments, you may well be right in terms of that.

>> and a lot of people depend on the public posture of the ceos toward donald trump, right? donald trump will target people he feels are political obstacles or economic obstacles to his agenda, but if ceos embrace donald trump, i think, you know, donald trump will embrace them right back. >> but i would say, in a counterpart that david will certainly know, david, in this case, it's not business. it's personal. the opposite of a famous movie that you like to talk about. >> i do. yes. and that is true. and that is true. and we made that point as well, eamon, and you have as well, that it does come down to that. obviously, we know because we had four years of president trump in terms of the approach to antitrust can be very personal. >> it's transactional. >> i'll tell you one thing, it's going to be so darn exciting you won't believe it. i remember amazon, it was in april, i was on vacation, he said, the post office, blah, blah, blah, and it was wrong, but the next thing you know, it was the greatest buying

opportunity i've ever seen for amazon. we are going to have buying opportunities galore because of statements made by the president of the united states. >> kind of puts into context some of the reported moves by executives to get in and start establishing rapport with the president-elect. >> yes. we know people who didn't -- told newspapers, don't take an opinion. we had a lot of people who would not come on our shows who were afraid, and maybe, in retrospect, because it's not business, it's personal, their stance, welcome to the shareholders. >> eamon, thanks. we'll talk later in the morning. the street is gearing up for big gains at the open as we look for stocks to open at all-time highs. euro is on pace for the worst session since brexit. oil and gold down on a strong dollar. bitcoin, implications for corporate credit. m "squawk on the street" continues. keep us going.

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all right, let's get to a "mad dash." we have an opening bell, of course, four minutes from now. we are looking for a sharply higher open across the board. and steel companies also potentially beneficiaries of whatever the trade policy may be under an incoming trump administration. >> i'm trying to figure out to tell people, go through this thicket of what really should be up and whatshouldn't. and nucor should be much higher. there has been a level of slothfulness by the administration of trying to stop chinese steel shipping into mexico and then our country to

get around. that's going to be over. i know from the president's people, that will be over. >> that will be over? they will end that? >> they will end that, and they will end that about as fast as you can say, north korean missile. no more north korea, either, doing that stuff. >> no? >> the various countries that have alienated us, they do badly in this regime, but that's not a stock. >> no, that's not. >> what is a stock is nucor, and this is right that's up 16 because they're the company that's been most hurt by mexican steel dumping that turns out to be chinese steel. this president will -- >> u.s. steel is up. >> right. >> still a question there as to the $55 a share all-cash deal to be acquired by nippon steel. now president-elect trump has said he would oppose the deal. that said, some of those workers may have made it clear to him, maybe not. >> but cleveland-cliffs is going to be back. >> yeah, i know.

lorenzo's listening, and i'm sure he's texting already, saying, what are you talking about? that deal is dead. obviously, cleveland-cliffs also benefitting. >> i think cleveland gets it, but i do think that nucor is not done going higher, up 15. that's how great this is for nucor. it's brilliant for them. >> couple of notes this morning looking at the effects, say, of deportation. b of a says they expect it to be a mild, persistence headwind to labor supply and gdp being offset by deregulation and energy production. >> i think that's true. i think that's true. i also think, though, that people are going to begin to talk about agent force, salesforce, which is doing the job of individuals. i think they'll start talking about the robots that tesla's making and how that's going to do the job. >> that's the other big question, saas and i.t. services, is that part of the government fat that elon musk will be sussing out? >> i think definitely. by the way, i think that when

you look at what palantir has done, upending the way that contracts are given, upending the way that hardware gets all the contracts, palantir is a natural buy here, even as it's very overvalued on an earnings per share basis. >> or on a revenue multiple even. >> they represent what i think trump would very much endorse. >> every -- countries around the world will be dealing with the continued advance of a.i., and what that means and will be very significant, obviously, as we've discussed over these next four years. we can only guess as to what it really is going to mean for either dislocations in the workforce and/or just general societal questions, let's leave it at that, you know? >> i do think this administration is more prone to saying, okay, we have to make up some of these workers that we're going to deport. again, there's other stocks that shouldn't be up. like, why is union pacific up? they do so much business

bringing things through mexico to our country but it's up ten because it's in the s&p. we can help them by saying, in the s&p, these fly up, but they shouldn't. not every stock benefits equally. >> you're kind of panning here. >> am i ever. >> some of the names -- >> we need to talk about cvs. i said cvs is a big beneficiary here, david. >> yeah? >> well, because remember, they have aetna, and it does seem to be we're taking up the united health. we've got a new person running aetna from united health. we have a new ceo at aetna whom i think is delivering, david joyner, and i think the stock may be done going down for another reason and this is going to be somewhat ideological -- >> we're talking cvs right now, which reported its third quarter earnings, did not give guidance on fourth quarter, did give us some sense as to the medical loss ratio it's expecting and a number of other important data

points on the conference call. sorry, i'm just looking for some news. joyner has been on the job for a week. >> you could say a lot is left over from lynch. i will say, carl, there's a belief, a sotto voce belief, that crime will go down. it's a state-by-state issue, not a federal issue, but this idea of massive shrink, that time is gone. that's something that i think people really feel, because they voted anti-crime by voting for trump. >> that would be great if it happened. i'm just not sure -- you have to release some of these bail laws. >> you have to arrest people, but those are all state laws. >> those are state and city, so that will be interesting to see if that really happens. >> interesting conflict. >> i'm not sure i would call it interesting if you send the national guard from one state into another. >> you've got the ability to resell these goods on big social platforms. >> you have to put a couple people in jail and then the word gets out that, geez, it's not as good as it was. >> if they unlock the ice cream at cvs, i will be as happy as

anybody. >> ice cream? >> yeah. >> is it refrigerated? >> yeah, it's refrigerated. you got to buzz somebody to get you ice cream, which obviously you don't do, which you're better off for if you have high cholesterol, so it works out. >> i explained to jassy it's quicker to order and get it from amazon than it is to get someone to unlock things. >> back to cvs' numbers themselves. >> numbers are okay. >> grew ebit 15%. so, the stores, even with these issues that jim is discussing, are doing okay. caremark grew 17% in ebit. the real focus has been aetna, and they say if trends persist at the worst level they've seen, they may see their medical loss ratio 7% higher than a year ago. that would be about 95.5% utilization driven by -- they gave a lot of supplemental benefits to people, a lot of kind of freebies, almost, giveaways to get them, and they priced things incorrectly as a result. >> that was really -- humana priced incorrectly. >> and medicare advantage.

they say they're losing mid-single digits, low double digits in health exchanges and losing money in medicaid. so, that's where the focus is when it comes to cvs. obviously, a strong quarter. not giving us fourth quarter guidance. i will remind people there is an activist in the stock in glen view, and my understanding is they continue to want board refreshment, and if they don't reach some sort of a deal to get it, then they conceivably, there will be a proxy fight in their future. the window opens mid-january. >> i do feel badly, karen lynch, the previous ceo, did close every money-losing cvs. that was a good hand for joyner. let's not forget that. throwing people under the bus is wrong. i had ark best on this week. it's a very big trucker. carl, the truckers, the transports, they're all going up with the idea of deregulation and more commerce. that is antithetical to tariffs. >> indeed. the other question this morning,

jim, as we hit 5,900 for the first time, how much upside for stocks is there with the ten-year at 4.5% and a 30-year auction on the way? >> well, i think that sometimes, when you're overenthusiastic at a game, you get caught up and think you can't lose. this right now, people are overenthusiastic because what happens is very big money tomorrow, index money, algo money, will say, you know what? we just got a free lunch because look where interest rates are, and in the end, interest rates do control. and they do. you have an animal spirit move going up against interest rates that people are ignoring. tomorrow, we'll be talking about mortgage rates. against that, we have to say, listen, how much can be done short rate that will stimulate the economy? we're going to lose mortgage rates, and mortgage rates is really important. >> we had clayton and gary cohn last night saying if a company were financing as short as the government is, we'd be asking, what's the problem over there? >> absolutely. absolutely. >> we're going to get back to worrying about treasury auctions again at some point, one would anticipate. >> like tomorrow.

>> that said, this market is incredibly strong right now. >> not home depot. >> not home depot. >> which i think is -- >> some of the media-related names, as i mentioned earlier, our own parent company up 4%, charteder up 4.5%. >> interesting. >> number of those names, usually where you might imagine consolidation, but tesla is the big winner, up some 15%. it's ballooning elon musk's net worth. he already is the richest man in the world and will be far exceed his previous net worth of a day ago with that stock now having almost a 16% gain. once again, not quite at a trillion dollars, but well over a $900 billion market value, and i like to remind people, he's still in line to receive another 300 million or so shares under that compensation agreement that was agreed to by his shareholders back in june but has yet to be awarded because you still need the chancellor in delaware to bless it, so to speak. >> do billionaires get jealous of other billionaires? >> yes.

>> they do, don't they? >> yeah, they do. >> bigger yachts? >> there's a lot of competition in billionaire-land. how many jets, how many wine sellers, how many homes. >> do you think boeing has enough jets for the billionaires that we're going to create here? >> i don't know if they can make them. it's a problem. >> i don't think they can. let me give one that's a definitive loser today, which is super micro. super micro, first, i want to advise them. you don't declare yourself innocent. they did a committee, and they absolved themselves of anything wrong. now, i know enough people in justice and in s.e.c. to say that one of the thing they don't like is when you say, you know what, we've looked this over, and we're clean. that is why that stock is down. let me give you even further. should they not -- it's obvious smeeg something is very wrong, but if you're an i.t. guy, you're putting your job on the line by buying from super micro. here's another insight that i

got. a large suppliers are now requiring cash in advance from super micro. >> jpmorgan cuts to underweight. limited visibility on the new auditor, and business fundamentals. >> they're not good. finding an auditor is not going to be easy, and they don't make it easy by saying, you know what, we did a deep dive and we're all clear. >> no, they're not. they're not answering the questions investors would like them to answer. >> no, and when they say that everything's good, what do you say if you're buying nvidia through them? wouldn't you just say, you know what, maybe i should buy it through dell. >> or hp. >> i don't want to go with guys wherei basically are concerned they delisted, this could be the quickest in s&p 500 we've ever seen. >> yeah. it's -- >> right? >> it's got to be concerning. and i don't know. you think hindenburg is still short? that's been quite a move for them. >> that's the great curse of all

time, david. new jersey. hindenburg went down in jersey. >> i'm aware. why is meta down, jim? any idea? >> there's the personal animus issue. president's been saying negative things about them. >> is that really what it is? >> i would buy that stock. >> trump wrote in his book about the prospect of zuckerberg going to prison. >> yes. see, that, again, you talk about negatives, talk about super micro, something about this -- jail? >> suboptimal, as you like to say? >> jail, suboptimal, and when you say someone's going -- you can't just say, sorry. so, people are going to sell that stock, but in the end, everybody makes nice. it wasn't like he said, i'm voting for harris. i didn't hear him say that. >> great note out of morgan stanley today on corporate credit. jim, if it's a sweep, corporate credit, goldilocks is at risk.

they argue that market likes moderation, and that if you had a sweep, equities could take a lot of oxygen out of the room. agree? >> well, i do think that people are more worried about -- about not having gridlock. there are a lot of people who just believe with gridlock, we're fine. but then there's this new group of critical action people saying, enough. the american people are sick of gridlock. they just want one party, get the job done. but what's the job? i mean, is the job to lower taxes and just have free money? i mean, we cannot do that as a country. we cannot have free money. we've seen it happen in zimbabwe. it's just a loser. >> given the tough lessons the democrats got last night, the next time there is a crisis, will the government shy away from stimulus because they fear the longer term and costly effect of inflation? >> well, we have to see where these auction lead us. again, i feel very strongly that tomorrow is a day where people say, yeah, but tomorrow's like

an alka-seltzer day. >> the warnings about the debt and the deficit, we've been sitting here for many, many years and the day will come, and yet it never really does, the day of reckoning. >> it's like 2024. it's our kids, david. not now. ten years from now. our kids. >> right, right. >> but we're cool. >> yeah, we're old. >> you're good? >> i'm good. i'm good. you know, to go back to eamon's points, you take a look at a stock like livenation. i regard them as a bit of a monopolist. they're getting the get out of jail free card today. >> livenation, yes. >> look at livenation. super micro, not that good. >> no. the names that i'm watching up also, back to the original conversation we had about potential consolidation, are a lot of the alternative asset managers, although i would say private equity is a small parking lot of so many of their businesses now. there will be more exits, perhaps, more deals for sure, but private credit is so important, and i don't know, jim, with rates moving higher,

that's not necessarily the best thing. >> no, that's -- >> but apollo shares are up 10%. kkr is up 8%. blackstone, up a little less than 4%. but you do have big moves amongst the many of the alternative asset managers. >> need i remind you -- >> apollo beat yesterday on the earnings so maybe a little follow-through as well there. >> you did say there comes a time when private credit will be as -- so loved as time to switch into something else. i get the sense that you're debating that. >> it's -- listen, it's going to be with us forever. it's going to continue to grow in a significant way. yeah. but i -- you know, higher rate environment, though, in some ways is beneficial because they can generate higher returns. so, let me clarify what i was just trying to say in terms of higher rates. there is a benefit for private credit there as well. and marc rowan is one who's

argued that rates should actually remain where they are. he does not see, given what they were seeing in the economy, the need for continued decline. so, i want to walk that back a bit. in fact, private credit, being able to offer double-digit returns, is obviously potentially quite beneficial to those in that market. >> does blue owl like blackstone? >> yeah. i mean, blue owl is up sharply. again, so, higher rates, helpful on that front. and deal-making, more deal-making helpful as well. >> definitely. look, i think all the companies that have been saying, if we got together, our stocks would go higher, believe me, they are not saying, oh, this is not -- this is child's play. they're saying, let's get pen to paper. we've got about eight months. let's get that deal out. we want to be first in the chute to get to merge and that's what's happening. >> we're watching. you can see discover, capital one. on the flip side, jim, brown foreman downgraded today. >> i've been saying that the

browns are bad. nothing's going to change. the brown liquors are not selling well. and people periodically will say, let's buy jack daniel's and also, by the way, for export. they may be the first one that's blocked because everybody -- you know, jack daniel's, david, that's a quick way to say, you know what, donald trump, here's what we have to say. no, we're making our own whiskey. we know it's corn and stuff. >> i've been trying to get you to weigh in on vaccines and moderna, down five today on rfk jr. you didn't seem to think it was that big of an issue prior days. >> i don't know. i think there's a public health issue. >> pfizer's also down, by the way, 2.5%. >> because the vaccine business could be in -- i don't know. on the run? >> yeah. again, back to appointments that will occur in the incoming administration. will rfk run health policy for the united states?

rfk jr.? that would include the fda, the cdc, the ihs. >> well, those -- these are agencies that have staff, and i think that when you get into them, you'd like to think, you know what, i'm going to upend the staff, but the staff's in charge. they're everywhere. they're big. they're powerful, and they're just hidden. you could come in and run that agency and realize, i'm not getting anything that's my way. nothing. that's what will happen. >> that's not a very bannon-like message. >> no. bannon? how's he doing? wow. bannon and navarro. >> yeah. they're going to be important, i would assume, important voices. navarro could -- what's his job going to be, jim? >> i think he's going to be secretary of state. >> up from trade rep last time. >> okay. >> lighthizer also will have a role. he was the head -- >> i will say that china is the biggest loser, and we haven't talked about them. >> shares down 3.5%.

>> i like david tepper but this is not the solution that he might have wanted. david tepper came on "squawk box" and said, look, buy everything. i think that the president -- if he has his way, he would like to make it so china is a very diminished country, and i don't think people realize how much -- i used to interview him in 2008, 2009. he was the first person to say, i just -- i don't like china. i just don't like them. and again -- what? >> banks. >> yeah. that move is a little exaggerated, don't you think? >> wow. take a look, guys. you got everything up over -- goldman-sachs is up 12.5%. wells fargo is up 14%. >> well, i mean, i just sold some wells fargo for the trust. let me tell you why. people are saying that there's this asset cap, which was put on in the first week of february in 2018. that's going to come off. i love charlie scharf but it's the biggest position in my trust. i love charlie only so much. >> you're looking good today,

man. jpmorgan up 10%. bank of america up. >> you'd like the product. >> these are stunning moves. >> yeah, stunning. >> take a look at some of the -- take a look at the kbe. that's going to take you back to 2022 highs. >> buy cintas. ctas. >> the uniform company? >> well, one million small to medium-sized businesses. small business is the backbone of this country. >> okay. >> buy cintas unless it's up 25. if cintas is up 25, don't buy it. >> it's only up 2%. why is coca-cola down? >> international. these are easy things to retaliate, david. >> okay. >> it's easy to say, you know what, we're not going to take your -- >> any multinational that has a high percentage of revenue from outside. >> this is a concern. >> this is a tariff war and a tariff war, companies that have just found themselves making a huge amount of money in other countries just -- >> on the prospect of retaliatory tariffs? >> yes. >> home depot also down 3% because they sell a lot of that

stuff? >> they do sell a lot of chinese but also with interest rates, that's really immediately -- i would buy -- my trust owns home depot. waiting for the thing to come down. but interest rates are downtdaunting. that's a play on refi. is refi going to be short rate or long rate? we don't know. that's a play on refi more than it is on mortgage. >> your point about the builders, it's a double whammy. it's not just rates but labor. we talked about deportation and lumber and raw materials. >> it's bad for them. people just buy everything. think about it. do i want to buy goldman-sachs up this much? no, because someone will come in tomorrow who has a lot of goldman. when you take it up this fast -- >> those are incredible moves. >> the sellers -- here's -- oh my god. i got a chance, i got a chance. they have committees. they sit back. >> if there's a boom in m&a, then they're right on the top of your list as beneficiaries. >> you can sell them, buy them back lower, and that's what they're doing because this is an

unnatural -- >> it's an unnatural move? >> etf move. we have to take a break because i hear music. actually, i always forget the music. >> you ignore the music all the time. >> i'm deaf. i think that the etf buying is something that people have to be careful of. there's a lot of things they're buying and they shouldn't. >> right. huge important day. we got above 5,900 for a moment. down a couple of points from there, but s&p is up 100 points. ten-year, 4.47%. we watch bonds, of course, the fed meeting begins today. we'll get a decision tomorrow. that's going to be interesting. we're back in a minute. \s

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one of the trump trades that was getting bid in recent days, of course, was djt, trump media and tech, adding, of course, to what was already coming into the quarter, so to speak, hot, up another 12% today, almost back

to $40. dow is up 1,200 points and we're just shy of 5,900. stock trading with jim is up next. at least, not the way it could work. your people are buried in busy work. and you might be thinking... can ai make it all work? it can. on the servicenow platform, ai transforms your entire business. your people work better, your customers are happier, and todd... well... he's practically euphoric. practically. so, let's get to work. (♪♪) ♪♪ ♪♪

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let's get to jim and stop trading. >> i'm concerned about taiwan. the president-elect has been inconsistent and he was anti-china at one point, said that taiwan should have to pay its own, but there's an interesting split between taiwan semi and nvidia. maybe taiwan semi, they put something on. if they put a tariff on, it's bad for nvidia. i would come back and say nvidia is the crown jewel and the president is not going to go against the crown jewel and in the end, the taiwan semi relationship will be preserved, and you should not sell nvidia on any of this, because i think the president still celebrates jewels that don't take money. remember, they are not a chips act beneficiary. >> right. also, given elon musk, one of the most powerful people in government he'll be, and what he has said and how he relies so much on nvidia. >> they have sometimes -- they're frenemies because, obviously, i think that elon would like to be independent, but he always says the same thing, which is, boy, they make

good chips. i think nvidia is not a loser but a winner in this situation. >> overall, jim? today? >> overall, i think you have to follow that tomorrow's the bond market's in control. we have a couple auctions going on that are not good. so, remember, there are two things you need to remember. when interest rates go up, it hurts the procter & gambles, and when we have trade wars, it hurts the procter & gambles, so i wouldn't buy procter yet. what? >> nothing. >> what's the matter? >> getting hit on both. >> yeah. how about him? >> blue owl loves wells fargo. >> regents financial. >> and charlie scharf is the winner because i think the asset cap goes away. i happen to think -- david, you know, i like charlie more than jamie. i said that because i'm going to get the phone call from jpmorgan, saying, why'd you say that? i'd say, it's gratuitous and i haven't even praised anna yet. >> it's true.

you do like charlie more. >> it's business, it's not personal. i'm not like the president. >> the viewers thank you for the work you've done in the last 24 hours. >> i watched every -- i come home, my wife is watching another channel. i grabbed the clicker. i want to see how long this guy lasts. this guy's going for the record. >> we'll see you tonight, "mad money," 6:00 p.m. we're going to stay on top of the markets, trump election rally with the dow up 1,100 points, s&p, 5,875. st wh .ayitus

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♪ good wednesday morning, welcome to another hour of "squawk on the street," i'm sara eisen with carl quintanilla and david faber live as always from post nine of the new york stock exchange. we're looking at record highs all around. dow, s&p, and nasdaq, after the extraordinary and historic victory for president donald trump. the s&p, soaring 1.7%.

not every sector is higher. you've got the defensive groups under pressure. staples, utilities, and real estate, but what's leading? financials. that group, soaring 4.5%. industrials, 2.5%. energy, the nasdaq is rallying as well. it's up .8%. tech stocks have joined the party. and it's not just the stock market. and by the way, i wanted to point out, russell 2000, also, 52-week highs there as small caps soaring 4%. look at treasurys. we've seen a selloff with higher yields. this is a continuation of the trump trade we have been seeing weeks into the election, especially the 30-year yield. we're looking at highest levels in months here for these treasury yields. we're also going to talk about some of the other movers in just a moment, but we're 30 minutes here into the trading session, and here's some stocks we're watching. there's a lot this morning. how about tesla soaring double digits? more on what's behind that move ahead on the show. cryptos are rallying, bitcoin hitting new all-time highs, topping $75,000. we're going to take a closer look at what a trump victory actually means for the asset

class and then financials, as i mentioned, rallying more than 5% as the fed kicks off another rate meeting. that's happening. we're going get a decision tomorrow on that, but also deregulation excitement in the bank area. you know, today, it's worth just pausing and looking at some of these trades that are reacting to the trump victory. also, the flip of the senate. the s&p 500, we'll just start there. we have seen a steady climb higher all year for the s&p 500. we're now adding to those gains and seeing an almost pretty strong 2% rally right now. if you go into the s&p, how about djt? that's obviously one place we look for the trump trade. that's the most direct trade. heavy volumes on this one. of course -- >> but not actually -- not back to its recent highs, interestingly enough, sara. i think there are a lot of other places to look this morning in the stock market. >> well, here's one. how about clean energy stocks versus banks? this has been sort of, trades going in the opposite direction. clean energy was one of the

areas thought to benefit under a harris administration. that's been weaker lately on the trump trade and the trump win, and then the banks, of course, deregulation, very helpful >> and an m&a wave, potentially, just a lot more activity in general, corporate activity, perhaps, is benefitting a lot of the banks. we talked about that last hour. these moves are quite, quite significant. i mean, you see double-digit moves in some of the biggest banks, and again, to your point, deregulation and solar stocks, for example -- >> under pressure. >> under significant pressure. >> jay clayton, former s.e.c. chair under trump, was with us here last night on the set, and when he talked about the deregulation agenda, one thing he mentioned specifically was bank m&a, saying, we have 4,000 regional banks in this country. they need to merge. we love our regional banks, but that would be good. and he mentioned that as a specific example of what's been held back in terms of activity in the biden administration, for instance, and something potentially to look forward to. we'll be watching those regionals.

the big ones too. look at the andersokind of day having. other trades in focus. the u.s. dollar, not very often we see a 2% move in the dollar index, but that's what we're seeing right now. on prospects for stronger growth, potentially higher inflation, tariffs into the u.s., our trading partners, potentially, being hurt by those tariffs. watching dollar mexico, for instance, where the dollar is strong. how about dollar versus china? this has been a good proxy as well for the election. u.s. dollar versus chinese yuan, and again, it's unusual to see a 1% move here. the thinking, if china is a big target of trump's tariffs, as he has promised, that's going to hurt their economy, and money flows into the u.s. as a result. 30-year treasury yield. we're digesting this idea of stronger growth prospects, potentially higher inflation and higher deficit, so that's one to watch there. highest level since may on the 30-year. bitcoin is another one. i mean, record highs for bitcoin. it's been amazing to watch. he -- president trump, during

the campaign, said that the united states is going to be the center of the bitcoin planet. we're off the highs, passed 75,000 earlier, but still up nicely. just some commentary from wall street on what this might all mean and what to do with some of these market moves beyond today. jpmorgan says, getting past the election is a risk-on event as we are now back to underlying fundamentals. after 2016 and 2020 elections, financials and tech were the two sectors that had the largest outperformance. given the strong macro environment and resilient earnings prints, we may see that pattern continue to hold. wells fargo, trump win is a regulatory game changer that likely includes more free markets, less harsh oversight. aids capital, cost, fees, and reduces regulatory risk. this should all aid banks, especially the g-sibs. favorite equals citi, according to wells fargo. bank of america, just on the risk of tariffs, we don't expect

the fed to prejudge the trump policy agenda but we think it will pause in the cutting cycle if large tariff increases are announced. assuming the economy is still son solid footing. we think the fed will err on the side of caution after having incorrectly assumed that 2021 supply shocks would be transitory. we're still expecting a fed cut tomorrow. don't expect powell to get into the election results or anything like that, but no doubt, we'll be watching because blanket tariff policies -- and this didn't happen last time in the trump administration because it wasn't as broad as what he's talking about now. and we'll see if he actually does that. but could have the potential to increase prices for american consumers on inflation and that's something the fed obviously has to be attuned to. >> meantime, let's get to our eamon javers this hour, breaking down what happens next following the president-elect's victory. sara ran through a few sectors, but defense, lilly's hurting this morning, coke and procter, the home builders. we've been through a lot so far. >> carl, that's right, and

starting off here with the big picture, which is that nbc news is now reporting that kamala harris is expected to call donald trump today to concede this election, and we do expect now to hear from kamala harris speaking to the nation later on today as well. tbd on the timing of both of those. we're also now expecting joe biden to call donald trump, and joe biden possibly to speak publicly, so this sets up a very strange scenario in which you have sort of effectively two concession speeches from the democrats on the same day, and a lot of questions swirling now about what will be the messaging in those speeches from both harris and from biden, how much sort of open arms welcome of donald trump will you get? but joe biden has committed to the sort of standard transition process and to attending the inauguration of donald trump if he were to win. now that he has won, you can expect that to happen. and then, i wanted to show you guys just a picture here. we've got a graphic -- a lot of

cell phones blowing up in washington today. the cell phones probably blowing up the most are the trump transition team. that's howard lutnik and linda mcmahon, who ron run the transition. those folks are probably getting more inbound phone calls right now than anybody else in political america as we try to figure out and official washington tries to figure out who's going to be running this trump administration in all of the important jobs, and you guys were talking about personnel being policy.% one person to watch for, i think, is robert lighthizer and what his role is in implementing these trump tariffs and taking on a leadership role within the economic team of the trump presidency. we don't know where all those items are going to land right now, but we do know that those two people will be running lead on it, and of course, it's all up to donald trump. >> yeah. i mean, let the speculation begin, i guess, in terms of treasury in particular, given

our world and how important that will be. eamon, any number of names, i suppose, at this point. do you have any sense as to how quickly they will move to make the announcements regarding various members of the cabinet? >> lutnick has been reportedly moving aggressively behind the scenes to come up with lists of names of people who would be seen as, you know, simpatico with the trump project, loyal to trump personally, and we'll see how advanced those efforts are. the big question with lutnick is, does he pull a dick cheney? dick cheney was vetting vice presidential candidates for george w. bush and ended up kind of selecting himself. does lutnick select himself for a big job in this administration? that's tbd as well. generally, in a normal transition, by december, you start to see a lot of the big names come and towards christmas, maybe, is when you see a lot of the biggest items like treasury secretary being announced. this one, though, is very different. this is very personal for donald

trump. he's been president before, so he probably has a pretty good idea of who he wants, and lutnick has been preparing. maybe we could see it a little bit sooner. >> what are the concerns -- what are the concerns that people had in voting for him, even republicans, is that he wouldn't attract this time around the same caliber of people around him. those concerns been put to rest given what we've seen so far in this cycle? >> i think he's going to attract a very different group of people than he attracted last time. he was an unknown quantity back in 2017, 2016, during the first transition. he had to pull a large number of staffers from the existing republican party apparatus, which was a republican party that doesn't exist anymore. this time around, he's going to pick people who agree with his sort of populist, high-tariff approach to governance, and that means that he's going to get people that he wants in these jobs, and it means he's not going to have a lot of people in the white house trying to oppose

what he's doing or trying to put up guardrails around him. he's going to have people in the white house who want to let trump be trump. >> eamon, thank you. eamon javers, obviously, going to get a lot more from him. let's get back to this market, though. man, stocks are flying, in particular the financials. bob pisani is here at post nine. this move in the financials has got my attention. i don't mean to single it out, although when you see 10% moves in the likes of wells fargo, i guess your attention. >> card companies are all flying. we have very heavy volume right now. we've done about a third of the normal volume, and the first half hour. that is very unusual. usually, this is barbelled, the big volumes at the end of the day. financials, big. tech's okay. lagging, staples, utilities, but maybe no surprise there. david was referencing financials. just take a look at the card companies, for example, capital one moving rather nicely, synchrony, regional banks like keycorp. david's right. double-digit moves.

some of this is hopes on deregulation. interestingly, moving on into other areas, infrastructure, materials, steel stocks are moving rather nicely. some of this, if you look at nucor, there may be some tariff hopes built in here to some of this stuff, but nice moves up here in infrastructure stuff like volka material and martin marietta. cathie wood, a big winner today. her biggest holding is tesla. you see the move up there in tesla. but remember, she's very heavily invested in bitcoin-style things. coinbase and robinhood are two of they are biggest holdings. look at those moves up there. she was also -- palantir is her third or fourth biggest holding as i recall. that, of course, had great earnings last week. this is a new high for palantir, and even roku is up, so cathie wood's having a great week so far. etf gainers, sub sectors of the market to look at. there's the kbe, the bank index, nicely up today. bitwise, of course, all the bitcoin etfs are moving. there's cathie wood's there.

roughly a seven-month high for ark. oil services are strong. some hopes, maybe, about more drilling going on here and there's the infrastructure. there is an etf for that. you can even buy infrastructure. weaker right now, housing, maybe, on concerns about higher interest rates, pulte, lennar, weaker, home depot a little bit weaker, not that much. and to the extent that this rally right now is, i guess you would call it, a pro cyclical trade, defensive stocks and consumer stocks are lagging a little bit, so coke, procter & gamble are a little bit down, nike was a little bit weaker earlier. there you see merck is on the flat side. there's no fundamental reason why these should be down but to the extent this is a pro cyclical rally -- >> also, trade, bob. >> that's china. >> that's an important component of it. they could become pawns in a so-called trade war, to some extent. >> absolutely. >> and then farmer, we're seeing

down in part because there's concern about vaccines, for example, if rfk jr. were to take a senior role in running health care, so to speak, in the u.s. >> fluoride out of the water supply. interesting. the utilities, just want to note here, utilities notably weaker and some of the reits, not affected that much. i think that's important. finally, just note solar power down, all the p.oot stocks are down, amplify marijuana, failed ballot measures. look at the gold down here, first time in a while you're seeing gold after hitting new highs. and on global, china and europe, both down. china, understandably. europe's been selling off all throughout the morning. amazing little moves in the market. >> lot of desks made the point, bob, that no matter who was going to win, we're in the sweet spot of seasonality, and maybe that gets even turbo charged given the result. >> there is a natural relief rally that would occur regardless of who won the election. what's interesting to me, what i can't quite resolve right now is

whether we're going get gridlock or not and to the extent that gridlock is considered equity positive, that may be an additional factor. we haven't resolved that with the house right now. so, that may be an issue, and a couple of days from now, if it gets resolved, if the house goes republican, there may be a slight rethinking of this rally going on right now. >> right. >> we still haven't resolved exactly what's happening. >> exactly. we're still counting some numbers, bob. we'll talk in a little bit. bob pisani. as bob mentioned, bank stocks a huge winner in today's trade. leslie picker is looking at what's driving the gains. i think it's the best day for jpm in four years, lp. >> already sitting around a record high for that one as well, and banks rallying in what has been the quintessential trump trade, leading up to the election. so, they're rallying off of a pretty high base, as you mention, carl. investors looking for a repeat in share performance after what happened in 2016 where the kbe surged about 5% after the election. today's gains are double that proportion. now, the themes that excite investors center around the

prospect of deregulation of potentially steeper yield curve and clarity that may ignite capital markets under the new administration. on the deregulatory front, banks could benefit from new heads at agencies spanning from the occ to the fdic to the ftc as well as watering down of rules, including the proposed basel iii, which would require significant hikes in capital levels and more favorable head of antitrust division at the doj could unleash a host of pent-up mergers as well. as for the yield curve, a steeper yield curve would benefit banks because it helps their margins from loan-making. the committee for responsible federal budget estimates that trump's economic policies would add $7.75 trillion to the national debt over the next 10 years, and the prospect of higher deficit levels has been driving up yields at the longer end of the curve. although, to be sure, higher interest rates could also put pressure on unrealized losses on balance sheets and pose a risk to credit quality as well.

lastly, having avoided a drawn-out election process creates a level of certainty for bank clients, allowing them to restart big decisions like commercial borrowing, as well as m&a transactions, sara. >> yeah, i guess all in the mix today with the big rally. i mean, what i hear, leslie, is that the cfpb in particular and the removal of director chopra would be good for those card companies because of some of the proposed rules like removal of late fees and open banking. >> we've seen significant fees from cfpb. they've been forceful in the bind administration. and unprecedented, we've seen the banking industry really push back in unprecedented ways, suing their regulators during this administration. something we haven't really seen before. part of that has to do with, you know, where they kind of sit in economic history, you know, very far removed from the financial crisis. they have significant capital levels. they felt they have the power to kind of push back on what they see as regulatory overreach.

so, we'll see if the next administration kind of solves some of those issues that they had with the current administration. >> finally, leslie, reuters up with a piece just now saying that jamie dimon will remain at the bank. no plans to join the trump white house. >> yep. i mean, that wouldn't be too surprising. i don't think that's something that he necessarily had been jockeying for in the last few months here, but i know it's something that every election cycle, people like to kind of play that parlor game of which bank ceo could be fit for that role and it's something that jamie dimon has found himself in the cross-hairs of for the last few decades now. >> i think maybe more questions if kamala had won than trump. >> yes, i think he was much more likely that you would have that speculation with a harris victory, without a doubt. >> exactly. thank you, leslie. watching these financials flying. as we head to break, here's our road map for the rest of the hour. tesla shares on a tear right now. what the return of a trump white house could mean for the company and broadly speaking for big

tech. plus, shares of trump media are up, although well off highs, and as we pointed out earlier, not near recent highs. still, what does president-elect trump's victory mean for overall all his assets and net worth? >> bitcoin, all-time highs following the election results, what crypto regulation may look like from here as a big issue show. "squawk on the street" continues after the break.

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that ultimately could pay dividends for tesla in a huge way for the coming years. i think 40 to $50 per share, it adds, just for beginners, not just because of what could happen from a tax credit perspective. i think leveling the playing field, you take out the detroit automakers, and then that's really going to give them an advantage from a cost, scale, and scope perspective.

the big thing here, trump could ultimately fast-track autonomous, fsd, and our whole view, as we've talked about on the show, trillion dollars of valuation just on a.i. alone. this is going to unlock if that's the key. >> makes a lot of sense. is there no scenario in which relations with china take a big hit and musk is asked to pick a side? >> yeah, and i think that -- on the other side, especially, it's not just for tesla but also apple as well. for musk, i think there's a comfort in him being in this situation that he could almost be a pseudo sort of, you know, ambassador. >> diplomacy? >> call it 10% politician, 90% ceo. in terms of making sure that the retaliatory or the carveout -- i think that's going to be important. the carveout piece from a tariff perspective, and i think one of the reasons that you see nvidia up today, you see semi, look at apple, despite some fears about what we're going to see on tariffs, there's a view, maybe,

with musk there, bark could be worse than the bite when it comes to tariffs, specifically on a.i., and i think that's really, right now, what's key, not just to a.i. but to the broader -- >> you started off by saying you think this could materially help tesla, having him in the white house. how? what sort of regulations are we watching? >> so, i think there's three things. one is that the ev tax credits get taken away, and i think that -- even though negative mfor ev sector, bullish for tesla because of their scale and scope. >> bad for detroit, potentially. >> bad for detroit. bad for gm. >> which you cover as well. >> and my view going into this was, like, that was a potential risk, but i think mary and the team have kind of pulled back a little, so it's not like they've bet it all on evs. so, i think one is going to be that where they get an advantage. two, and i think probably most important, is this autonomous fsd. when you think about cyber cab and everything we've talked about, 26, could that be '25?

if trump clears the path there, this changes the whole paradigm. >> are those regulatory authorities that oversee full self-driving federal in nature so that's where it is? it's not states that are involved? how does that work? >> is that department of transportation? >> it's a great question. there's some that's federal and then the third part is a big overhang here. i think just broader, it's been regulatory. i think, another overhang has been like ftc with khan, you know, in terms of not just for tesla but broader in big tech, and the view many investors i've talked to is khan's likely out in this scenario with trump taking over, which is bullish for m&a, bullish for big tech, less regulation, but when -- specifically when it comes to tesla, it's all about musk now having a say where he didn't have one with either biden or -- >> he's got a significant say. let's talk very briefly here, broader temperature, generative a.i.

what do you think his impact will be there in terms of advising the administration, i guess, and what the policy may be? >> he'll be what i'll call like an a.i. ambassador. i mean, that's essentially the role he could play from a tech perspective. there's comfort, and i think it's partly why nvidia is up, why semi is -- apple's not down, despite some worries about retaliatory. musk being there, as twilight zone as it sounds, actually gives some comfort, specifically on the a.i. piece, that he could actually make sure this does not have unintended consequences for the big tech trade, for microsoft, for the hyperscalers, and i think that's something that's clearly at play here, especially with musk having much bigger say in the white house. >> finally, when you think about state governments that may -- democratic states that might be recoiling at what happened at the federal level, does that not make them more antagonistic on fsd? >> you want battles that will continue to play on for the

coming years, but the big one is on the federal side. so, especially what's going on in china, if trump really tries to fast-track autonomous fsd, then everything we've talked about at robo taxi day, instead of three, four years, that's one, two years ahead, and i think most of the investors i'm talking to, that's their big focus. can this fast-track autonomous? and the question is, probably, yes. and that's why we start to look at a trillion, trillion and a half market cap as this all plays out. big part of the value. >> $19 away from your target. keep us updated. >> i will. >> dan ives. as we head to break, check out the health insurers. they're rallying on the prospect of easier regulation for medicare and their integrated businesses. on the flip side, the vaccine makers taking a hit, potentially surrounding some concerns around vaccine skeptic robert f. kennedy jr. and his role in the trump administration, how he might approach this. we know he's been critical. stay with us.

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welcome back. here's your cnbc news update.

abortion measures passed in seven of ten states that put the issue on the ballot tuesday. voters in arizona and missouri chose to undo existing abortion laws and secure abortion rights until fetal viability. florida, nebraska, and south dakota, voters -- those voters rejected proposed amendments to do the same. meanwhile, colorado, maryland, montana, nevada, and new york passed measures to formally enshrine existing abortion rights into their state constitutions. the embattled los angeles county d.a. suffered defeat last night. george gascon made headlines for supporting clemency for erik and lyle menendez, the brothers convicted in 1989 in the high-profile murders of their parents. the progressive d.a. survived two recall attempts in his four-year term and lost the race to nathan hawkman, a former federal prosecutor. and a federal appeals court lifted a temporary hold on a colorado law that bans gun

purchases under the age of 21 to take effect while the legal battle against it plays out. supporters say it will reduce suicides and gun violence, while critics say it violates the second amendment. david, back to you. >> thank you. well, as we've been telling you, of course, stocks surging following president-elect trump's victory. business and corporate leaders are also, of course, trying to assess what a second trump presidency will mean for their businesses. joining us here on the set at the new york stock exchange is michael linten, the chair of warner music, the chair of snap and the former ceo of sony entertainment. nice to have you here, michael. you were a harris supporter, i believe. is there any concern in the business community in terms of whether there will be a backlash in some way against those who supported trump's opponent? >> i would hope not. i mean, the half of the country voted for harris. the other half has voted for president trump, and the hopes

would be that whatever incoming administration deals fairly with both. >> and what are your thoughts when it comes to what you can expect, obviously, both from the perspective of whether it's snap or -- >> i mean, less from the perspective of snap and warner music and more in general, what you would hope for is some consistency in the policy, because that's what business likes to see. i, myself, am not somebody who's personally in favor of tariffs. i don't think they're good for the country. i understand that president trump is in favor of them. but i would expect that we'd see more of that. you know, what i would hope to see is the ability to have an honest conversation into the future about what is good for the economy and what is good for the american people and that a certain degree of transparency into that conversation would also be great. >> i want to ask you about tiktok because i know you're involved with snap. the last time around, tiktok was considered a target in the trump administration, banning it. they still have this law that

passed here in the united states, and we don't really know what's going to happen. i think it's in the hands of the chinese government right now, but what is your expectation for what happens there and how it impacts a company like snap? >> i mean, i really don't know anything more than you know, which is that there's a law right now that says that come january, either they find a u.s. owner for it or it has to come out of the united states. to your point, that's a little bit up to the chinese government. it's a little bit up to a judge, because that still has to be seen by the court. i think that will be decided by the end of the month here in november. but i don't know whether a change in administration makes a difference to the trajectory of where this is meant to be going. >> we've been talking all morning about whether the results sort of redefine what's possible in m&a. >> right. >> and i'm wondering how you think boards are thinking about that today. >> i mean, my sense is they will -- that m&a will have a big uptick. in the current administration, obviously, there was a lot of scrutiny being paid to it from an antitrust perspective.

given what i have heard from this new administration, there will probably be a lot less scrutiny over those matters, and so as a result, there will be a lot more m&a. >> you think that gets offset by price, or are prices still in a neighborhood where you can plow ahead? >> prices are pretty high. so, you know, at some point, that will be a major consideration in any -- >> i mean, you're a long-time, obviously, member, so to speak, of the media industry. i mean, there's a lot of consolidation conceivably that is needed, particularly for those weaker players and/or those that are in weaker parts of the industry. >> in that sector, they are not elevated, the pricing, so i could see actually that sector benefitting from all of this. because you're quite correct, there needs to be consolidation. i think people were to some degree waiting to see what the outcome of this election would be, because if harris had come into the office, maybe there was less likelihood that those combinations would have been permitted. there is a good possibility that with a trump administration, they'd be more likely. >> i do wonder. entertainment is one of our bigger exports, so to speak.

when it comes back to this tariff, is it a concern, do you think, or should it be, in some way, that there may be tariffs placed on the exports from the u.s. by our trading partners? >> you mean specifically into china? >> more generally, even, given he's -- i think president trump has talked about 10% across the board. >> i think that's always a concern, absolutely. there's a lot of content that's being made indigenously, whether that be in china, which is now over 50% of their box office is chinese-made movies. same goes for europe. i could see that having a big effect on the entertainment industry, if there were that kind of a tariff. >> what about the way ceos engage with a trump white house? we learned a lot during the years in 2016, they all joined his councils at first, and they paraded into the white house, and then a lot of them had to drop out of the councils because of certain positions or policies, like, what do you think is going on in those communications huddles right now about the best way to interact with the trump administration? given everything we've learned. >> you know, i haven't had any

conversations with anybody given the fact this all just went down in the early hours of the morning. my suspicion is everybody's trying to find their footing, and to your point, just now, i think there will be overtures and then everybody will try and figure out what the dance looks like. right now, it's not really knowable. certainly, given what we saw in the previous administration, you know, going back to '16. >> finally, just a question about artists. >> yeah. >> and how involved they got in this cycle. >> they did. >> whether that was beyonce, taylor, kid rock, ricky martin, right? >> yep. >> i wonder, do you see them recalculating? >> no. you know, i think we've seen this happen in the past. i think, you know, it's -- it's wonderful to see people come out and support candidates. i don't think, at the end of the day, these celebrity endorsements really make a big deal of difference coming out of the music industry, hollywood at large. that really does not what the american people want to -- >> i wonder if it's a turnoff. >> there's a distinct possibility that it's a turnoff.

exactly right. it feels elitist at some level and people just don't want to hear that when they're -- that in their ear when they're trying to figure out who to vote for. >> michael, thank you for joining us. we'll turn back to this massive market rally. and using workday to p ut finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models. oh, that's so rock roll. it is, right. he gets it. yeah.

welcome back to "squawk on the street." let's get the latest this hour on the key house and senate races. our meagan casella down in d.c. with more. good morning. >> good morning, sara. the republicans have taken not just the white house but also the senate at this point and pretty decisively. they have a 52-seat majority already with the races that have been called so far. they flipped seats in west virginia, ohio, and montana to get there. all of those states swung heavily for republicans. there are still six seats left uncalled. many of these very close races. take a look first here at michigan. the democrat, elissa slotkin, leading by 11,000 votes with more still coming in, and in

pennsylvania, the republican, david mccormick, is leading the incumbent democrat, bob casey, by about 50,000 votes here but still some 260,000 left to be counted, so could go either way in those seats, but already, a decisive win for the republicans in the upper chamber. and then over to the house. very much still an open question here. republicans have flipped three seats already, as you can see there, but 54 remain uncalled. a lot of these are on the west coast, so there still is lots of votes to be counted, could be a few days with the balance of power in the house in limbo, but i will add, guys, speaker mike johnson did put out a statement declaring victory in the house, saying that republicans are "poised to have unified government and that the latest data indicates they will hold the house majority." we don't know that for sure yet, but i will say that given the decisiveness of the republicans' victory in the white house and the senate, even with so many house races still uncalled, there is a lot of skepticism that democrats will be able to hold on to any power in

washington next year. >> pretty resounding statement. thank you very much. let's unpack what it all means for the markets. ed yardeni joins us now. is that the most bullish scenario, ed, for stocks, the republican sweep? >> apparently so. i mean, the market is certainly celebrating, saying basically it's a new day in america. so, look, we've been talking about the roaring 2020s as the beginning of the decade, and the stock market's roaring because it's anticipating that we're going get more tax cuts, that we're going to get deregulation, and that those will offset the negatives of some tariffs, clearly, and maybe more government spending, but on the other hand, there's elon musk, who trump is kind of siccing on the government, and asking him to come up with all sorts of spending cuts. so, it's a very fluid situation, but at the end of the day, i think the market's saying that the outlook is pretty good. we're not going to have a

recession any time soon, and the economy could live with interest rates at these levels, and the real question will be what does the fed do on thursday? i think they should do nothing, but if they do a quarter, they're going to signal that they're not going to do anymore any time soon. >> i mean, the market is almost 100% that they're going to do a quarter. so, if they do nothing, that would be a big surprise, and uncharacteristic of powell to not even leak, you know, something different than the market's pricing. >> yes, i understand that, but all the economic -- they say they're data dependent, and the data's beenvery, very -- >> i know. d data's been good. >> data's been really good and now they have to consider the possibility there will be more fiscal stimulus, more economic growth, and do they really want to lower interest rates and contribute to that kind of stimulus and risk blowing their inflation target? >> i think what people might be wondering is, okay, now we have a very different outlook for

america, different policy, different leadership. clearly, the market's reacting today, but should you be making material changes to your portfolio, and if so, what? is it too late? some of these moves are already gigantic. >> yeah, i think it's a little bit late to get in it. i certainly wouldn't be jumping in today. but certainly, you know, we've been bullish since late october of 2022, and anybody who's been in the markets should just stick with it. at some point, there could be some profit-taking on this kind of move. >> but even beneath the s&p, ed, i mean, look, health care's negative right now on the session. stocks like meta, who we've heard donald trump trash before, underpressure. financials are soaring. the changing of exposures and winners and losers, that's what we're trying to figure out here more than just today. >> yeah, yeah. well, i think even that's kind of difficult to do in this kind of rapidly moving market. i think you got to wait until things settle down.

we've liked the financials very much. we wouldn't get out of the financials. we haven't been keen on the health care, so we wouldn't get in there if rfk is going to suddenly restructure that sector one way or the other. so, no, we're feeling pretty comfortable. we've been recommending it technology, communication services, financials. the only clunker has been our recommendation for energy and maybe it's time to get out because trump wants to drill, baby, drill, so that isn't going to be great for energy. >> get out of energy stocks on lower oil prices? >> yeah. i mean, i think that trump wants to produce more oil. china's demand is going to remain weak. europe's demand remains weak, and the u.s. is going to be producing more, so i don't see a lot of upside for oil prices any time soon. >> is there a risk that all of this gets hurt if the tariffs do come to fruition and result in what economists have warned of, which is higher inflation, weaker economy, retaliation,

that sort of thing? or does the deregulation and the tax cuts, does that offset it? >> i think it offsets it, and i think also, a lot -- basically, the deal maker is back. donald trump is the art of the deal, and a lot of his blustering about tariffs may be attempts to negotiate better deals. he did negotiate a better deal with mexico and canada last time, and now i think he feels the need to go back and negotiate with at least mexico again because so much chinese production is moving to mexico. >> right. all right, ed. thanks for talking us through it. been a nice rally, 1.8% on the s&p. ed yardeni. . still to come this morning, check out shares of djt on the move as the president-elect is set to take office as the wealthiest president-elect in history. we'll get more details after the break.

the election is largely in the rear view mirror, so traders and investors are turning their attention towards the next fed that two-day meeting starts today and ends with a decision tomorrow. one options trader will show you how to hedge your bets on whatever ends up happening with ne is. tunto our market navigator segment on "power lunch" at 2:00 p.m. eastern time.

take a look at market here. hanging on to gains of aabout 2% on the s&p and watching volatility as vix comes down to 15, currently 16. watching sectors, had a couple more add to the red, utilities, health care and staples. but, of course, financials up almost 5%, david. going to change a lot, at the holiday level. >> yeah. to me, that is the stand-out,

the biggest and regionals as well and the possibility of less regulation and more m&a when it comes to the bigger banks that have investment banking and the departments and the like. it may be beneficial. another stock up is djt. no surprise. it may be a bit of a surprise it is not up more given you could see where the recent highs were. the surge does follow president-elect trump's victory. robert frank has been tracking all of trump's net worth numbers for a very long time and joins us now with more. robert. >> good to see you. shares bouncing around in the last 24 hours but donald trump will take office as the wealthiest president-elect ever. worth about $6 billion now. about two-thirds of that comes from the new social media company, trump media and technology which trades under

djt. worth just under $4 billion and the stock is up about 6%. the president and vice president of course are largely exempt from government conflict of interest rules, so trump put the trump administration into a blind trust in his first term. he's not announced any plans tor detailed what he's going to do this time around, either for the trump organization that is run by eric or for djt or the family new crypto venture, that is world liberty financial. this time around trump will not have the trump international hotel down in d.c. he sold that for $375 million back in 2022. now the trump organization is teaming up with the saudi real estate firm for oman and vietnam. he plans not to sell the djt shares and unlike most politicians president trump didn't get into politics for profit, he's fighting because he loves the people of this country and wants to make america great

again. but, david, you take the conflict of interest questions around his country, the first term and add to that a publicly traded company of which he's a majority shareholder and which the investors are unknown to the public combined with crypto and a larger portfolio and a more complex portfolio. >> it is amazing considering there is scant revenues in this company. >> the most recent quarter was a million in revenue and $19 million in losts. so there is no business case for what is an $8 billion market cap company. and -- >> it is him. >> it is him. and the question is can you build a business around that. >> and maybe it is not reaching highs because there is so much else to buy today. in terms of the trump trade and the beneficiaries. there is a lot of money spreading around to other places. >> we'll sort it out over time in terms of djt and see what develops there or what the

relationship between trump and musk brings. musk controlling x, owning that as well. robert, while we got you, given you're an expert on tax policy, ienl sure we're talking about that if the house stays in republican hands. it may give president-elect trump a real opportunity to push through a lot of his tax agenda. what are your expectations? >> i think the hidden message in the bond yields this morning as you and jim were talking about is the tax plan. so you just extend the 2017 tax cuts. that is $4 trillion added to the deficit over 10 years. if you add in everything else, it is $10 trillion over ten years. so i think if it is a republican congress, and a republican white house, then the bond market starts to get more nervous about the cost of these tax cuts that he has promised and said he will try to fulfill. >> but do you have to offset the tariffs, the money that they would raise from that. and what is the gross

assumptions on that. the market is that would lead to much better growth. >> and that is hard to model. tariffs is about $3 trillion so you're still adding $7 trillion even with the best case for tariffs there. >> let's see. let's see if he gets the house too. thank you, robert. crypto trading at all-time highs. we're tracking the moves which have been stunning. mckenzie, this is the center of the action. >> it has been. it is a big night for the digital asset industry with all coin surging higher as bitcoin traded above 75,000. and they are bullish that donald trump will swiftly deliver on his pro-cryptal campaign promises. his pledge to fair gary gensler who has brought more than 100 enforcement actions against some of the biggest names including coinbase and robinhood and those around 20% and 15%. and he can't fire him, he could replace him with a leader that

will go softer on crypto. and he's promised to establish a crypto stockpile. meaning that the u.s. government would have a nest egg of around $15 billion worth of bitcoin. and he said that all future bitcoin will be made in the u.s. public miners like marathon digital riot and bit digital all trading higher and helping to drive up small caps. so that $245 million raised by the crypt industry this election cycle proving to be well worth it. david. >> mckenzie, thank you. final input from me. one name that we haven't mentioned today in terms of beneficial moves from president-elect trump's or his winning election, fannie and freddie. coming out of conservative, they could be enormous public offering and all of the profits go to reducing the deficit. a lot more coming up from us,

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