Post-Election Rally: New Record Highs, Tesla Remains Red Hot 11/11/24

David Faber (0:00)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Carl Quintanilla (0:06)

Good Monday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with David Faber, Sara Eisen, and Post 9 of the New York Stock Exchange. Cramer has the morning off. Futures strong as the S&P looks to revisit 6K at the open, coming off the 50th record high of the year. Congress returns for the lame duck. No data today. The bond markets closed for Veterans Day. Our roadmap begins with the roaring bull rolling on. Stocks poised to build on last week's post-election rally to new records.

David Faber (0:31)

Plus, as usual, keeping an eye on shares of Tesla. They are popping once again ahead of the open. This is on the heels of what's a 29% surge for that company shares just over the last week.

Sara Eisen (0:43)

And crypto's on a tear again. Bitcoin hitting fresh highs, topping $82,000 this morning. Coinbase, MicroStrategy, Robinhood, among stocks all riding crypto's coattails.

Carl Quintanilla (0:54)

Let's begin with this post-election rally. Definitely easy to keep a list of winners and losers since election day, guys. On the plus side, it will be Tesla, Bitcoin, banks, small caps. Losers continue to be oil, China, volatility down some 25% in the past week.

Sara Eisen (1:13)

I mean, some of the banks have been noting the similarities and differences between 2016, where the Trump trade was very much on in a similar fashion. One difference is autos are up 13% and you can thank Elon Musk for that and Tesla, even though some are saying that this is broadly not going to be great for the auto industry as far as incentives on EVs, for instance, which could go away or maybe that is good for the auto industry because people don't really want EVs as much. So maybe that last regulation ultimately is a good thing, but also just a more industrial policy and more tariffs ultimately could be good. So autos are up big, that's a difference. Pharma down 1% since the election, and that's a difference as well on the concerns around RFK and what position he might fill and then what he might do. Mexico's up about 2% on the reshoring idea. Europe down 5% on tariffs and that was a winner in the prior administration on the Trump trade. So just some interesting differences, but overall, I think the feeling is very bullish. We had the best post-election one day gain in the market in history.

Bank of America did some analysis, David, and found that when that happens, it usually continues a few weeks later, a few months later as well. Sustainable, in other words.

David Faber (2:30)

Yeah. By the way, the financials, of course, went parabolic last week. You can take a look at, choose your name. Goldman Sachs, for example, which is approaching a $200 billion market value. Again, they're on the hopes for just a lot more activity.

Plainly spoken, M&A certainly amongst that, and that course continues every day. In terms of the people I speak to, the expectations that not just pent up demand, though there is plenty of that, and then regular course, there will be a lot of companies that feel a lot freer to pursue their dreams when it comes to consolidation. Take a look at JP Morgan, there's Goldman. These are just month-to-date numbers, but you can see what we're talking about there in terms of that move up. You see it right there after the election. Then Carl, Musk comes up, as you might imagine, virtually every conversation I have. Some believe he went from being the most consequential businessman on the planet to one of the top, let's call it two, most important people, period. Three, I don't know where you want to rank him, but because of the importance that conceivably he will have in terms of the execution of strategy by an incoming Trump administration, he is far beyond that of just simply a businessman. Of course, we've talked about that many times anyway, because of his influence in things like Starlink and the war in Ukraine and so many other areas, large government contractor via SpaceX and the like. But there are those who just believe by Musk at this point because he's a beneficiary.

Carl Quintanilla (4:01)

Yeah, Vice President Musk, CNN said he's been at Mar-a-Lago almost every day since the election, weighing in on these vetting calls, reports he was in on that call with Putin, which then got some pushback. But today, Web Bush does take Tesla from 300 to 400 Dan Ives with a note out today. Of course, we mentioned returning to a $1 trillion market cap on Friday. As for M&A, David, great, great chart out of Morgan Stanley today. Andrew Sheets takes a crack at what kind of bounce we might get in M&A. Year-to-date announcements are up 25 Next year, they see an even larger 50 percent gain in announcements. Sponsors return, large cap deals return, Cigna, Humana today notwithstanding.