Markets A.M.: Wall Street Salivates Over New Trump Boom

Dow Jones11-07

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Hello, I'm Eliot Brown, here to bring you up to speed on the markets on this post-election Thursday morning.

After Wednesday's euphoria, investors are sobering up a touch. Stock futures are modestly higher while some Trump trades, like the dollar and bitcoin, are giving back some gains. Now heads are turning to central banks, as interest-rate decisions from the Federal Reserve and the Bank of England loom.

On Wednesday, Donald Trump's victory powered the three major U.S. indexes to all-time highs.

Follow our live coverage throughout the day for the latest news affecting markets.

Meanwhile, my colleagues examine the elation on Wall Street over the Trump win.

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Stocks to Watch

Trump Media & Technology: Shares in Donald Trump's social-media company have been highly volatile recently, and surged Wednesday after he secured the presidency. The stock fell about 10% ahead of the open.

Qualcomm: The chip company said profit nearly doubled and issued a quarterly revenue forecast ahead of Wall Street estimates, buoyed by strong demand for smartphones. The stock climbed about 7% in premarket trading.

Lyft: The ride-hailing company raised its outlook after posting a sharp rise in sales and rider count. Shares soared 20%.

Zillow: Shares of the real-estate platform gained more than 10% in offhours trading, after Zillow beat earnings estimates.

Earnings due Thursday include Carlyle and Hershey in the morning. After the close, results are expected from Airbnb, Expedia and News Corp, The Wall Street Journal's parent company.

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Wall Street Salivates Over a New Trump Boom

By Gregory Zuckerman , Lauren Thomas , AnnaMaria Andriotis and Jack Pitcher

Wall Street has rarely been more excited by an election.

U.S. stocks' capitalization rose by $1.62 trillion on Wednesday, their fifth-best one-day showing ever, following Donald Trump's decisive election victory. The surge highlights the opportunity that investors, bankers and others in finance are hoping to embrace over four years of tax cuts, deregulation and economic expansion.

"Investors are celebrating," said Jack Ablin, chief investment officer at Cresset Capital in Chicago. He was among those buying shares of smaller companies, on the bet that Trump's policies will rev up the economy.

Keep reading . Charting the Markets

When the bond market and the currency are giving off conflicting signals about the national debt, trust the currency , Heard on the Street's Jon Sindreu writes. Treasurys are selling off, as a second Trump presidency is set to increase deficits, yet the dollar is strengthening.

Trump's victory means very different things for different healthcare companies. Those exposed to Obamacare and Medicaid could suffer, while Medicare Advantage-related businesses could benefit, Heard on the Street's David Wainer writes.

Donald Trump's victory restored investors' faith in the $35 billion merger of Discover and Capital One, which has faced regulatory hurdles under the Biden administration.

Must Reads

The mystery trader known as the "Trump whale" is set to reap almost $50 million in profit after running the table on a series of bold bets tied to the presidential election.

When Federal Reserve officials decide this week on the path for interest rates, they will have a new factor to consider , namely the incoming Trump administration.

Lower taxes under Trump would be a boon for an equity market that was starting to look priced for perfection, but tariffs could create longer-term damage, Heard on the Street's Jon Sindreu writes .

More:

China Has Detained a Senior AstraZeneca Executive Your Money in a Second Trump Term: Taxes, Credit Cards and Student Loans Toyota's Bet on Hybrids Looks Even Better Under Trump This Day in Markets On this day in 1929: After the market slumped 6% in the morning, J.P. Morgan stepped in publicly and began to buy stocks for its own account. By day's end, the Dow had squeezed out a small gain, but the tickertape ran two hours late, and many sell orders were unfilled. Beyond the Newsroom

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About Us

We want to be the first place you go to get ready for the opening bell every day. This newsletter was written by Eliot Brown ( [eliot.brown@wsj.com]) in London.

This article is a text version of a Wall Street Journal newsletter published earlier today.

 

(END) Dow Jones Newswires

November 07, 2024 06:47 ET (11:47 GMT)

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