Historic Post-Election Rally, Qualcomm and Arm Earnings, Tech CEOs and Trump: Round 2 11/07/24

Carl Quintanilla (0:00)

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. Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Futures add to gains after an historic day for the Dow, the dollar, financials, small caps, best stock reaction to a presidential election ever. We turn to the Fed this afternoon and tons of double digit earnings movers today. A roadmap begins with the Fed on deck poised for another raid cut as stocks look to build on that rally.

David Faber (0:32)

Tesla gets a price hike following Trump's win. How Elon Musk stands to cash in on the so-called Trump trade. We got a lot of earnings to hit this morning. Of course, Qualcomm, Arm, Warner Bros. Discovery, Zillow, Novo, the list goes on from there.

Carl Quintanilla (0:48)

Let's begin with this post-election rally as the street awaits today's Fed rate decision. Jim, still a lot of notes today about just what happened in small caps in regional banks yesterday, Solar, Bitcoin, you name it.

Jim Cramer (0:58)

Mix of a combination of M&A coming back, we'll speak to David about that, lower taxes, pro-growth, and a kind of a re-evaluation of Trump 1 versus what we saw with President Biden, with the notion that, look, you're going to get better environment. And David, you know, better environment is a hard thing to determine because could there have been a better run than Biden had, but we don't remember that. It doesn't seem to matter.

David Faber (1:29)

Yeah, I mean, it was it's been a strong economy and a very strong stock market, of course, as our viewers well know, adding those kinds of gains from yesterday, of course, is now taking us into very high altitude performance, so to speak, in terms of even historically for the S&P, Jim.

The Fed, obviously, a lot on its plate to consider. I would assume they do not in any way consider what is yet to come in terms of policy from an incoming Trump administration to terms of how they make their decision.

Jim Cramer (2:02)

Yeah, I think that's true. And there are areas that we don't talk about that much where there is real weakness. There is a trucking recession. Autos have been a major problem in the economy. No affordable housing at the same time as mortgage rates going up.

And Carl, I want to use a metaphor. Sometimes it pays to have a metaphor that can explain to people what's really going on. I had a fabulous executive, Judy McReynolds, on. She runs a company called ArcBest, one of the biggest truckers. And I was really struggling as a reporter, as a host, trying to think of something to say that would elucidate an answer, would say, listen, you should buy the stock. And I tried to hit Judy on a lot of different things and Judy's really coherent on everything. But in the end, it's a freight recession. So I gave up. I didn't know how to do it. And I said, well, look, you make up your own mind. Well, yesterday, the stock was the biggest gainer in the S&P. The stock went from 100 basically, one was to 120 And it struck me as the metaphor was, look, things are going to get better because of the Fed and because of President-elect Trump. And so be careful what you don't like because it may turn out to be darn good.

Carl Quintanilla (3:13)

Interesting, even solar names, even homebuilders now in correction territory.

Jim Cramer (3:17)

I know. I mean, you've got two solar names that have been under pressure. You have Nextracker, which is when Charles S. Jones, and you have First Solar, and they're distinguished as being American solar company. So therefore, they might be in the sweet spot versus Enphase, which is regarded as something that should be forgotten.

Carl Quintanilla (3:33)

Solar Edge gets downgraded today to underperform at JPM. Interesting note on that point, Jim, about small caps and any regional bank name that would need to refinance. The question was, at what point do you yield start acting as a suppressant? Their argument is debt is unlimited appetite so far, steepening curve is helpful, and to your latter point, anything that points to domestic producers, favoring them, incentives that favor them, helps domestic stocks.

Jim Cramer (4:03)

True, and you had KeyBank get an infusion. KeyBank is where the reshoring is, but this is an Ohio bank. Reshoring is occurring. Comerica had been a bank that pretty much had been left behind as a problematic bank. Boom, that's a terrific one. A citizens bank. David, I think what we're seeing is a recognition that maybe we're going to have a revaluation of how much concentration you can have in the banking group and how much money you can return to shareholders.