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Hey there weekday warriors,
The days of candidates firing off texts like they’re your crazy ex are over. But it appears that the Trump trade is alive and well.
Enjoy the next 4 minutes and 39 seconds of blue-chip news and commentary.
Keep on snapping necks and cashing checks,
+ US stocks “rallied sharply on Wednesday, with major benchmarks hitting record highs, as Donald Trump won the 2024 presidential election.” (CNBC)
+ The 10-year Treasury yield “surged Wednesday as Donald Trump won the U.S. presidential election over Vice President Kamala Harris, along with a strong showing for Congressional Republicans across the country.” (CNBC)
+ Oil “settled lower on Wednesday as investors weighed a strong U.S. dollar against the potential that U.S. President-elect Donald Trump's foreign-policy plans could squeeze global oil supply.” (Reuters)
+ Bitcoin “surged to a record high on Wednesday as Donald Trump secured a win in the 47th US presidential election over Kamala Harris, boosting hopes for more friendly regulation.” (Investing)
+ The three most talked about stocks on WallStreetBets in the past 24 hours were: 1) Trump Media +5.9% 2) Super Micro Computer -18.0% 3) Tesla +14.7%
The market moves you need to know about…
– Not every sector popped on the election results. Home builders and home improvement retailers/wholesalers took their lumps after mortgage rates spiked yesterday. Shares of Home Depot fell 2.9% on the day.
+ Qualcomm out here channeling its inner Nvidia. Despite not being a major player in the AI chip space, Qualcomm just made Q3 its b*tch. Not only did it beat on the top and bottom lines, but it shared a Q4 forecast that topped expectations. Shares rose 6.2% after hours.
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Look at me, I’m the captain… again
Source: Giphy
It's ok, you guys… the election cycle can’t hurt you anymore.
ICYMI early Wednesday morning, former President Trump became President-Elect Trump. Which means the markets and the economy had a full trading day to react (overreact?) to the news…
And it appears the Trump trade is alive and well.
All three major indices went parabolic in the aftermath of Trump’s victory. The Nasdaq, Dow, and S&P 500 all got their “new high score” on. Even Bitcoin broke through its previous all-time high.
No real surprises on the list of biggest winners…
Tesla and Trump media… because obviously
Big banks… on hopes of the new administration rolling back regulations
Fossil fuel companies… because “drill, baby, drill”
Crypto adjacent players (sup, MicroStrategy and Coinbase)… which, to be fair, probably would have benefitted in the short term no matter the outcome
So can we expect the good times to continue?
Maybe, but not for the reason you think…
There’s reason to believe markets will continue to move up and to the right (think: soft landing, rate cuts, overall good vibez), but not necessarily because Trump is President.
You see, history shows that the leader of the free world has little direct impact on the stock market. Sure, some of their decisions (think: appointing the Fed chair) can send ripple effects through the economy and certain sectors. But the sitting President tends not to have a whole lot of control over what markets do. That’s Nancy Pelosi’s job…
To be fair, Trump isn’t most Presidents (see: @’ing individual companies during his first term)…
+ Name something more American than one of those long-a** CVS receipts. You literally can’t. It just reeks of raw, unbridled capitalism.
The pharmacy chain that’s currently on life support showed it’s still got a little bit of fight left in it. CVS (+11.3%) reported mixed earnings yesterday, but that was good enough for investors… who came in with lower expectations than Helen Keller’s parents. Despite the bottom line miss and pulling guidance, shares jumped more than 11% on the day.
Of course, that’s probably because things couldn’t get much worse for the drugstore. Turns out, higher medical costs are bad for business (friendly reminder: CVS owns health insurance giant Aetna).
+ Planet Fitness be like “I can fix him…”
I hope you guys find someone who looks at you like Planet Fitness (+6.1%) looks at Blink Fitness. After losing out on scooping up the bankrupt fitness chain, Planet Fitness is making another bid.
You might recall that Blink, an affordable chain of gyms owned by Equinox, got its Chapter 11 on after the luxury fitness club failed to figure out how to serve the poors. And last week, UK-based PureGym won an auction for the chain with a $121M offer. Or so they thought…
PF (not to be confused with Chang’s) had its bid rebuffed thanks in part to antitrust concerns. The FTC would simply not stand for one gym having a monopoly on people with high BMI and low bank account balances.
Now, it’s made two (higher) offers. One is contingent on regulatory approval… and one is not.
+ What’s that? You won $11 on Kalshi picking Donny Politics to win the election? How cute…
Donald J. Trump wasn’t the only one who won big Wednesday. That French Polymarket whale walked away with $48M after Trump took the White House.
But that was ashtray money compared to some big tech CEOs in #47’s orbit…
Coinbase’s founder Brian Armstrong put his money where his mouth is by backing pro-crypto candidates (SBF walked so Brian could run). And he was rewarded handsomely. Shares of Coinbase popped more than 30% Wednesday, increasing Bry-guy’s net worth by ~$2B.
But by far the biggest winner of the 2024 election was the richest man in the world. Elon’s net worth increased by nearly $15B after Tesla shares mooned.
+ Drop the “GPT.” Just “Chat.”
Sam Altman confirmed on Twitter that he’s the proud owner of chat.com. Currently, the URL redirects users to ChatGPT.
No word on whether this is part of a major rebrand, or if Sam just felt like blowing some of his non-profit’s cash. The domain most recently changed hands in 2023 for $15M.
+ I bought 2 abandoned homes in Detroit for $3,300 and spent over $100,000 renovating them—take a look inside. By the looks of it, they might have overpaid…
🔥 Some Final Personal-Finance Advice From Jonathan Clements (The former Wall Street Journal columnist faces a terminal cancer diagnosis the only way he knows how—with practical suggestions about family finances). This is worth a read.
🔥 More homeowners just started pulling cash out of their properties. Here’s why. Probably so they could invest more money in Nvidia.
FYI, TWC might be compensated if you click on the links above. So, what are you waiting for? Start clicking.
⏪ Yesterday, Celsius, Toyota, CVS Health, Honda, and Brookfield reported before the bell. And Qualcomm, Arm, Mercado Libre, Duolingo, Lyft, Applovin, HubSpot, AMC, Zillow, Dutch Bros., Faraday Future, Joby, Beyond, Virgin Galactic, and Oddity dropped earnings yesterday after the close.
⏩ Today we’re keeping an eye on…
+ Datadog, Moderna, Under Armour, Hershey, Barrick Gold, Warner Bros. Discovery, Yeti, Papa John's, Geo Group, and Molson Coors report this morning
+ Airbnb, Rivian, Block, The Trade Desk, DraftKings, Cloudflare, Lucid, Pinterest, Monster Beverage, Toast, Redfin, Bill.com, Sweetgreen, Archer, and Capri Holdings drop earnings after the close
+ The Fed releases its policy statement, and we’ll hear from J-Poww
On Monday, I asked, “Who will be the next President of the United States?”
68.1% of you were right.
And here’s today’s question…
Sam Altman’s chat.com purchase has me wondering if anyone else owns a bunch of random domains. Or is it just me who buys domains “in case I want to start that business”?
How many domains do you own? |
Oh, and one more thing…
What did you think about today's newsletter? |
Does this look like the face of a guy you should take financial advice from?
No, it’s the face of an individual who is financially irresponsible/dumb enough to be talked into spending money on a family photo shoot that he could have just done with his iPhone. So, act accordingly...
This is not financial advice. Nothing in this newsletter is an investment recommendation. All content is created for entertainment, educational, or informational purposes only. Do your own research, or do yourself a favor and hire a professional.