2026 Markets, Tesla Deliveries, Mega-Tech Rallies Into the New Year 1/2/26

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Carl Quintanilla (0:45)

Market Moving Insight and Analysis join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street.

David Faber (0:53)

Good morning and happy new year. Welcome to Squawk on the Street in a new year. It's 2026, I got to get used to that. I'm David Faber, Sara Eisen, of course, next to me here, live from Postline at the New York Stock Exchange, Jim and Carl finishing their week off. We're all back together on Monday. Let's give you a look at futures before we get started with the first trading session of the year. We are looking for a higher open after, of course, strong performance in our markets and many others around the globe in 2025 Our roadmap begins with tech stocks. Of course, will they continue that rally from last year? Nvidia, Apple, Alphabet, Microsoft, all are trading higher in the pre-market.

Sara Eisen (1:34)

Plus the EV trade. Tesla due out with Q4 delivery numbers, facing increased pressure from the Chinese brands, with BYD on track to become the world's top EV seller. And President Trump delaying some expected tariff increases for things like upholstered furniture, kitchen cabinets, vanities, even pasta. We'll dig into what it means for the macroeconomic picture and for the stocks impacted.

David Faber (1:56)

All right, let's start with the markets, of course, as we begin 2026 Major indices are coming off what was the sixth positive year of the last seven. The S&P ended the year. There are the final numbers, 16.39% was the gain there. The NASDAQ, of course, a bit higher, 20.36 for the gains. And as we talked about on Wednesday, very strong here and very strong in many other markets around the world, you just heard Mike talking about the FTSE hitting 10,000 for the first time.

Sara Eisen (2:28)

It's been a global phenomenon.

David Faber (2:29)

As we begin trading today, what's caught your eye, Sara?

Sara Eisen (2:33)

The warmth of collectivism. No, we have a new mayor in New York City. Also, you know, valuation, I think, is the... We're going to try communism here because it's worked so well.

David Faber (2:43)

You went right into it, huh?

Sara Eisen (2:44)

Yeah, that's what's on my... You asked what's on my mind.

David Faber (2:46)

That's true, I did.

Sara Eisen (2:46)

It's on my mind.

David Faber (2:47)

I don't know that's going to be impacting the stock market, at least at this point.

Sara Eisen (2:50)

Let's see. Look, I think valuations are worth talking about. There was a good note from Tony Pascarello, a trading note at Goldman Sachs, and he mentioned valuations. This is a good stat for you. So last year, S&P began the year on a 21.5 forward multiple, PE. We are ending the year on a 22 times forward multiple. Last year, at the beginning of the year, everyone was saying no matter what metric you look at, the CAPE metric, PE, all these ways of valuing the market, the starting point was high. And yet, we surpassed that. So it's just to say that that's not necessarily a barrier, but we do start 2026 with a high valuation. We also started, though, with companies like the Magnificent 7 plus put in Broadcom and expected to show 24% earnings growth this year. So a bigger percentage of the economy and the market in high-growing tech sectors. So is that justified or not? I think that's going to be one of the biggest questions. No doubt, the bar is higher, right? We've seen Nvidia pretty much top out in October and do nothing since then. That is true, yes.

David Faber (4:02)

In fact, it's given up some market caps since then. Yes, that's right. And of course, as our guests will continually point out as well, the PE for many of the names, the biggest mega cap names are not particularly high, certainly given their growth rates. Speaking of Tesla, one of them certainly, and it is out with its latest delivery numbers. Phil LeBeau is here and he has them for us. Phil.