Post-Election Rally, Honeywell Surges on Activist's Stake, Shopify Pres. on Q3 Beat and Soaring Stock 11/12/24

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 Tuesday 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. Future steady after five stray gains for the S&P amid this post-election rally. Bond market reopens two year, highest since July. Five Fed speakers today, including Waller this morning. A roadmap begins with stocks continue to ride the Trump wave. Futures higher as traders await these new transition details from the president-elect.

David Faber (0:34)

Plus activist pressure at Honeywell and Big Time. Elliott Amass is on a massive stake. It is pushing for the company to separate the shares are surging on the news. Home Depot lifts its guidance. The retailer says sales are improving, but the consumers are still cautious about spending.

Carl Quintanilla (0:52)

Let's look at this post-election rally. Jim's back on set after a nice couple of days in Dallas. Jim, what do you make of this continued roll on?

Jim Cramer (1:00)

I think that there's a belief that both deregulation and lower taxes will spur much more growth than what Vice President Harris offered. I think there's also a sense that a lot of people, the big money guys, didn't expect this to happen. There's also, and David, you might, I know this is maybe straight too much in the political, but so far, the people who are known, including Secretary of State Possibly Rubio today, it doesn't seem like anything other than we're back to lower taxes deregulation and the market likes that.

David Faber (1:37)

Definitely does.

Jim Cramer (1:38)

Yeah, it just does.

David Faber (1:39)

You know, I guess the question that I'm starting to hear is how many of the gains have already been taken?

Jim Cramer (1:44)

True.

David Faber (1:45)

Versus when the administration actually takes power a couple of months from now and starts to implement other other policies, Jim, namely, certainly tariffs being chief amongst them, that will be viewed perhaps differently.

Jim Cramer (2:01)

Yeah, look, I think it's important to note that already we're getting pushback. Citi talking about how the transports have completely gone ahead of themselves. And you've got to be very careful because the next things you hear are going to be estimates lowered. But I come back, Carl, I'm going to see Live Nation today, at the new Paramount in Brooklyn. Frank will not be there, unfortunately.

Carl Quintanilla (2:21)

It's a great haul.

Jim Cramer (2:22)

You're going to love it. Yeah, it is a great haul. But I would tell you that there's an example of– Live Nation is a very clear example of what I'm talking about. There had been a really serious effort made at the beginning of this year to separate Ticketmaster from Live Nation, which really hurt their earnings. And what they talked about on the call was, hey, look, that may be done. We're going to have a more reasonable antitrust department. A more reasonable antitrust department is a PE multiplier, because you're not going to get blindsided. You're not going to have an alphabet which must be broken up. You're not going to have a Live Nation which must be broken up. Instead, what you have is kind of business as usual. If antitrust doesn't like it, they call you and maybe work something out. And that's actually what they said on the comp school. I can't wait to go there and see Michael Orpino because it's saying, listen, the rule of reason is back. The rule of reason.

Carl Quintanilla (3:10)

It's interesting because the quarter wasn't perfect. Sales did this at all three divisions, and yet the dynamic you're describing results in what we got today.

Jim Cramer (3:19)

Look, you split that company up and you have a company that doesn't do as well. And one of the things that I think that we all have to recognize is not do as well versus well is part of what's going on with the administration's antitrust department, which is that we're not going to have these companies do as well. We don't want them to do as well. We want them to break up and not necessarily, we want monopolists to be punished. I think there was a sense of retribution and a sense of moral judgment against monopolists, which included libation. Because if you read what the just department said about it, they were adamant. Look, this is...

David Faber (3:56)

Right. Right. Yeah. You know, speaking of split ups, guys, let's get to the news of the morning. Well, do you want to talk about Honeywell? Yeah, let's talk about Honeywell because Elliott, of course, the most active of activists and the largest by far has taken what, at least in my memory, may be the largest single position I can recall in a company. And this is obviously a well-known company, Honeywell, certainly Aerospace and a lot of the other businesses. They want them to split up. And you can see the reaction in the stock price. A letter from Elliott has been released. This is often the case in terms of their playbook.