November 8th Market Overview

Happy Friday everyone.

We are closing out the week with green across the board on the major indices.

Earlier this week marked the strongest post-election up day in market history.

Remember, bond markets are closed on Monday for Veterans Day, but all major stock exchanges remain open.

Let's dig in...

Executive Summary

• Markets celebrate Trump victory with strongest post-election rally in history
  

• Small caps surge over 8% this week, best performance since 2020
  

• $TSLA breaks $1T market cap as Musk-Trump alliance boosts sentiment
  

• Multiple tech earnings surprises with $LYFT, $DUOL, and $QCOM beating expectations

Market Overview

Key Market Drivers

1. Election Impact: Trump victory sparks rally on expectations of deregulation and business-friendly policies
   

2. Sector Rotation: Financials and small caps leading gains on regulatory outlook
   

3. Strong Earnings: Tech sector delivering robust results, particularly in AI and mobility
   

4. Fed Policy: Market digesting yesterday’s 25bps rate cut amid Powell’s “feeling good” economic commentary

Stock Spotlight

• $TSLA breaks above $1T market cap (▲ 7%) as Musk’s Trump connection boosts investor confidence
  

• $LYFT delivers “strongest quarter ever” (▲ 22%) with revenue at $1.52B, triggering multiple PT upgrades
  

• $DUOL posts exceptional growth with 54% YoY user increase, though stock faces profit-taking
  

• $QCOM beats across all segments with auto revenue (▲ 68% YoY), announces $15B buyback
  

• $NVDA Alexander Green says this “Nvidia has invested more in this one company than any other”. 

Big Name Updates

• $NVDA officially joins Dow Jones Industrial Average, replacing $INTC
  

• $GS leads weekly Dow gains (▲ 13%) on expected surge in M&A activity
  

• $BA secures $5.2B deal with Israel for F-15 jets, negotiating additional $4B China Airlines order

Other Notable Company News

• $PLTR partners with Anthropic and AWS for defense AI integration, faces valuation-based downgrade
  

• $AMC announces major GO plan for comprehensive theater upgrades
  

• $QLYS exploring potential sale amid strong security sector interest
  

• $PANW receives downgrade to negative from OTR Global

Sector Watch

Bond Market

Treasury markets digest Fed Chair Powell’s optimistic economic outlook following this weeks 25bps rate cut.

Barclays adjusts expectations, now projecting only two rate cuts in 2025 versus previous three, citing potential inflationary impact from proposed Trump tariffs.

Policy Watch

• Fed implements anticipated 25bps cut while maintaining positive economic outlook
  

• Trump-Xi phone conversation signals potential diplomatic approach to trade relations
  

• Barclays revises GDP forecasts lower, factoring in proposed tariff impacts

What to Watch

1. Jobs Report Impact:

• Market reaction to employment data

• Wage growth indicators

• Sector-specific hiring trends

2. Trump Policy Rollout:

• Initial executive order announcements

• Trade policy specifics, especially regarding China

• Regulatory reform timeline

3. Tech Sector Momentum:

• $NVDA’s first trading day as Dow component

• AI-related stock performance post-election

• Impact of potential regulatory changes on tech giants

4. Small Cap Leadership:

• Russell 2000 sustainability above key levels

• Sector rotation patterns

• Impact of potential deregulation on regional banks

 
Thanks for reading 🙂

P.S. 
Please fuel my coffee pot with a quick click to our sponsor today. 
It's free, fast, and keeps these insights coming daily.

- John