Wednesday, November 6, 2024

With the 2024 election behind us, stock markets are rallying higher across the board. Unlike the last time Donald Trump was elected President, when markets were unsure which direction to take equities initially, the Dow is currently +1300 points, the S&P 500 +132, the Nasdaq +361 and the small-cap Russell 2000 +141 points.

Bond yields are also rising. Not only does shedding uncertainty send markets higher, but inflationary measures promised by the Trump campaign to levy tariffs on imports from all over the world will keep prices high. The 10-year yield is +4.437% right now, with the 2-year at +4.268%.

Bitcoin is also at a new all-time high of $75K, which has helped stocks like Coinbase (COIN Quick QuoteCOIN - Free Report) surge +12% this morning, with Bitcoin-related ETFs like Ark 21Shares Bitcoin (ARKB Quick QuoteARKB - Free Report) up +6%. The Trump administration is likely to be ver favorable of a deregulated cryptocurrency market.

Tesla (TSLA Quick QuoteTSLA - Free Report) shares are also +12% this morning, which can be seen as a play on Elon Musk, who may have an important role in Trump’s new government. It would stand to reason that all of Musk’s businesses would do well with their CEO in a position of government power, and Tesla is currently his only publicly traded company.

Also on the ballot yesterday in a number of states was the vote on whether to legalize marijuana. While Florida, North and South Dakota all rejected the proposal, it did pass in Dallas, TX and in the state of Nebraska. Aurora Cannabis (ACB Quick QuoteACB - Free Report) also posted a +118% earnings surprise this morning, but shares are down -5% early in this otherwise roaring hot market.
 

Q3 Earnings Season Rolls Along

We saw Toyota (TM Quick QuoteTM - Free Report) post an earnings miss this morning, which may cause it to lose its Zacks Rank #1 (Strong Buy) status in the coming days. After the close, we’ll get results from Qualcomm (QCOM Quick QuoteQCOM - Free Report) , Trip Advisor (TRIP Quick QuoteTRIP - Free Report) and Gilead (GILD Quick QuoteGILD - Free Report) .

Check out the updated Zacks Earnings Calendar here.

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