CNBC Business News Update - Market Close: Stocks Rally On Trump Victory, Dow Has Its Best Day In Two Years, Mortgage Rates Surge 11/6/24

Episode Date: November 6, 2024

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica Edinger, CNBC. Wall Street opens Thursday morning after Donald Trump clinched the White House and stocks had a monster day. Major averages all hitting new all-time highs. Investors are hoping the Trump victory means less regulation for companies and higher profits. The Dow was up 1,508 points, 3.5% led higher by shares of Goldman Sachs, which were up 13%. The S&P 500 index up 146 points, 2.5%. The NASDAQ up 544 points. That was just about 3%. The Dow coming off its best day in two years. You have the market's tendency, and this happened in 2016 too,

where you front load the positive implications of all that is expected. And then down the road, it gets complicated by tariffs. In this case, I think what's being under discussed is mass deportations on day one and what that means for labor supply, what it means for businesses, you know, getting disrupted. CNBC's Mike Santoli. A long list of companies' shares hit fresh all-time highs on Wednesday. Amazon, Walmart, American Express, Verizon, Goldman Sachs, JP Morgan, just to name a few. Some are calling it a relief rally. That the election appears to be decisive, no waiting. But one billionaire investor hedge fund manager had some cautious words for investors. Stocks are fully valued and are more likely to go down than up from here. And that if one was a trader, the sell strength of the opening and that the market will be down next year.

Omega Family Office Chairman and CEO Leon Cooperman on CNBC. Others say investors like the future for making money. The stock market's roaring because it's anticipating that we're going to get more tax cuts, that we're going to get deregulation, and that those will offset the negatives of tariffs and more government spending. Yardenny researches Ed Yardenny on CNBC, but would-be homebuyers may not like how the election turned out. At the end of the day, I think the market's saying that the outlook is pretty good and the economy can live with interest rates at these levels.

Mortgage rates tend to follow yields on the 10-year Treasury. They spiked Wednesday on the prospect of more spending under a new Trump administration, and that would push the U.S. budget into further deficit. So mortgage rates spiked Wednesday too. The average rate on a 30-year fixed home loan went from 7% Wednesday morning to 7.13% by the afternoon, according to Mortgage News Daily. Bitcoin surged to a record high, $75,000, on what the industry sees as a friendly new administration in Washington.

What went down? A carnage in clean energy stocks. Sunrun, first solar, Enphase, to name a few. Investors expect a halt to measures that fight climate change. Shares of private prison companies in the U.S. were higher on the Trump win. He's promised a crackdown on illegal immigration on day one and a roundup and deportation of mass groups of people. Florida-based GEO group surged more than 20 percent. CoreCivic gained almost 20 percent. On Thursday's watch list, the Fed announces a decision on interest rates. It's widely expected to cut. We get a lot of earnings reports on Thursday. Coach Parent, Tapestry, Krispy Kreme, Hershey, Duke Energy, Molson, Coors Brewing, Ralph Lauren, and Warner Brothers Discovery, to name a few. Starbucks will stop charging extra fees Thursday for non-dairy milk in your coffee.

Like nearly a dollar extra in some spots for almond milk, soy milk, or oat milk in your drink. Jessica Ettinger, CNBC. CNBC. Live ambitiously.