Markets’ Election Countdown, Nvidia Heading to the Dow, Buffett's Berkshire Slices Apple Again 11/04/24

Jim Cramer (0:00)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (0:13)

Good Monday 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. Coming off a couple weeks lower on the S&P, heading into an historically eventful week with an election, a Fed meeting, plenty of travel and media earnings. Yields are lower across the board, 10 year 4-2 weight. Our roadmap begins with the big week ahead for investors as we go into the final hours of this 2024 presidential campaign, and the potential for another Fed rate cut this week.

David Faber (0:41)

Plus J, GENAI Momentum and Nvidia is set to replace Intel as one of the 30 blue chip stocks in the Dow this week. And a setback for the future of the nuclear power data center, federal regulators limiting how much power Amazon can use. This would be from a reactor in Pennsylvania, Susquehanna, nuclear stocks. I didn't even know we could say the words nuclear stocks, but let's just say some power company related names are getting hit on this.

Carl Quintanilla (1:07)

Let's begin though with the markets on this election Eve. Plenty of stats rolling around this morning, Jim, about what happens to stocks in the weeks or the six months following an election.

Jim Cramer (1:18)

Usually up? Yeah, and I just think it's odd that it doesn't matter who. I also think that this Iowa news kind of flipped a lot of stocks and then flipped back, but Iowa news that it looked like a state that is a Republican state may switch.

David Faber (1:34)

Right, you're referring to a specific poll by a very well-known and well-respected pollster that showed in a dramatic fashion Harris was leading when in fact she had been trailing significantly previously. I know a lot of people pointed that over the weekend. It's unclear though exactly whether it's right and what it would mean.

Jim Cramer (1:54)

The futures were up and I thought that was because of Iowa, then the futures were down, maybe people forgot about Iowa. I mean one thing Carl, I hate to say this because you are captaining the, you're the anchor for a night that may last a week, maybe last two weeks. I just don't get any sort of clarity that this thing is over after the election. It just doesn't seem possible when you have one candidate who does not accept defeat.

Carl Quintanilla (2:22)

There is a broad expectation and the Times wrote about it extensively over the week and that he will, Trump will declare victory at some point on election night.

Jim Cramer (2:30)

Right. Unless it's a blowout.

David Faber (2:33)

Unless it's a decisive win one way or the other. But let's assume it is as close as the polls would indicate, but that Harris ultimately prevails in a close electoral college. Trump is expected to contest that.

Jim Cramer (2:50)

Yes.

David Faber (2:51)

What will be the impact in the stock market if that goes on for quite some period of time and there is some unrest associated with it perhaps as well?

Jim Cramer (2:59)

We have some bizarre bull market where it's just be depending on some stocks go up more than others. I don't see this market going down on that.

David Faber (3:06)

You don't?

Jim Cramer (3:07)

No, I see the market going down on Treasury auctions. That's where I see Treasury auctions are...

David Faber (3:13)

That said, the inflation trade has been the trade that many have focused on if they've been expecting a Trump victory.

Jim Cramer (3:20)

Yes, absolutely. Because the tariffs don't make up for it.

David Faber (3:23)

If tariffs were to win, would rates, would you have the 10-year come down?

Jim Cramer (3:30)

Yes.

David Faber (3:31)

But I think many people still expect the market would also come down in part because of the likelihood that Trump would contest the election.

Jim Cramer (3:39)

Well, I think, look, the president doesn't do that much versus earnings. The earnings have been, that's what's been controlling these. All I'm saying is, yes, there would be disarray politically, but if we have good earnings, the buyers can't resist. The note buyer says, you know, I'd like to buy Viking Therapeutic, but I can't because Trump may contest it. It just doesn't work like that. Well, either the buyers are too stupid or we're all just an equestrian in our own little world.

Carl Quintanilla (4:08)

On that point, we're about 70 percent of the way into earnings. Seventy-eight percent are beating by an aggregate 7.1 percent. The historical average is 4.9. Thank you, Binky Chadha. It's been a good quarter.