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Markets: The post-election rally on Wall Street continued into afternoon trading, with the Dow Jones Industrial Average jumping 3.4%, or roughly 1,450 points, and the S & P 500 advancing 2.4%. It's worth noting, the stock market was reacting like Jim Cramer said it would in his Sunday column . The one thing markets hate is uncertainty, and Wednesday's rally can be attributed, in part, to relief that Wall Street professionals and individual investors alike know where they stand and what to expect from the country's next president. Bond yields move inversely to prices, and a basis point is equal to 0.01%. "You have to be very careful to respect the bond market if you do any buying today," Jim said.
Persons: Jim Cramer, Donald Trump, Kamala Harris, Morgan Stanley, Jim, It's, Yun Li, Trump, Harris, Jerome Powell's, we'll, Jim Cramer's Organizations: CNBC, ., Wall, Dow Jones, Trump, Republican, NBC, Senate, NBC News, Wells, BlackRock, Energy, Coterra Energy, Honeywell, Federal, White, Arm Holdings, Qualcomm, Bros, Moderna, Barrick Gold, Halliburton, Hershey, Air Products, Chemicals, Warner Bros ., Jim Cramer's Charitable
Two stocks have outperformed the S & P 500 every November when elections have been held over the past three decades — regardless of the outcome, according to a CNBC Pro study. Electrical and industrials giant Eaton Corporation and Sweden's second-largest lender, Svenska Handelsbanken , are the two stocks that beat the U.S. benchmark in November every election year. CNBC Pro screened for stocks currently in the MSCI World Index that gained more than the S & P 500 — or lost less than the index — in November of every election year since 1988. Every time is different Historical performance is never a guarantee of future performance, and stocks often move for idiosyncratic reasons. This year, for instance, the Federal Reserve is expected to announce a decision on interest rates on Thursday, which could also influence the trajectory of stocks.
Persons: Brett Linzey, Mizuho, Eaton, Arctic's Roy Tilley, Henry Allen, Pfizer's, Barack Obama, Allen Organizations: CNBC, Eaton Corporation, Svenska, CNBC Pro, Eaton Corp, Mizuho, Svenska Handelsbanken, Arctic Securities, Federal Reserve, Deutsche Locations: U.S, Industrials, Sweden, Greece, Europe
CNN —German Chancellor Olaf Scholz fired his finance minister on Wednesday, leaving the government teetering on the brink of collapse. “The economy cannot wait until after the elections,” Scholz said. Trading barbsThe German chancellor and Lindner criticized each other in separate press conferences on Wednesday. Scholz told reporters “Lindner showed no willingness to implement any of our proposals” and, therefore, “there is no trust basis for any future cooperation” with the outgoing finance minister. The Chancellor also accused the finance minister of being “not about serving the common good but about serving his own clientele and party.” According to Scholz, Lindner will also be dismissed by the country’s President Frank-Walter Steinmeier.
Persons: Olaf Scholz, Scholz, Christian Lindner, , – Scholz, Lindner, Robert Habeck, Trump, Habeck, Friedrich Merz ’, ” Scholz, Germany’s, Chancellor Gerhard Schroder, Angela Merkel, “ Lindner, Frank, Walter Steinmeier, Alice Weidel Organizations: CNN, Social Democratic Party, Free Democratic Party, Green Party, Lindner’s Free Democratic Party, Greens, Christian Democratic Union, CDU Locations: Germany, Nazi
Credit markets face challenges, but opportunities exist in corporate bonds and cheap optionality. But when times are tight, companies deleverage until their debt is less than their cash flow. The yields in corporate bonds aren't much higher than in government bonds, meaning less compensation for more risk. Advertisement"This trade works if natural gas prices remain stable or rise, leading the energy bond to outperform the overall corporate bond market," Rieder said. "It's an excellent opportunity to capitalize on the current tight credit spread conditions and complacency in the overall credit market."
Persons: , Goldman Sachs, David Kostin, Mark Rieder, Rieder, I've Organizations: Service, Fed, Treasury, Bloomberg, Business
As the central bank lowers its benchmark rate, mortgage rates are expected to go down. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. 30-Year Mortgage Rates TodayAverage 30-year mortgage rates are hovering in the mid-6% range today, according to Zillow data. 15-Year Mortgage Rates TodayAverage 15-year mortgage rates are in the high 5% range, according to Zillow data. 5-Year Mortgage Rate TrendsHere's how 30-year and 15-year mortgage rates have trended over the last five years, according to Freddie Mac data.
Persons: they've, Jerome Powell's, you'll, Freddie Mac, it's, They'll Organizations: Zillow, Fed Locations: Chevron
Oversnap | E+ | Getty ImagesLONDON — Britons are facing the prospect of higher mortgage rates for longer after the government's tax-and-spend budget threw off expectations for a series of near-term interest rate cuts. Mortgage rates also took a hit from the uncertainty, with a number of smaller and mainstream lenders raising mortgage rates on the expectation that interest rates may stay higher for longer. watch nowVirgin Money became the first major lender to raise mortgage rates after the budget, lifting them by 0.15%. "This isn't the radical spike in rates that have blighted mortgage rates in the last couple of years. He added that interest rates could now remain 50-basis-points higher than previously expected at the end of the cutting cycle.
Persons: Rachel Reeves, Reeves, , David Hollingworth, Hollingworth, Allan Monks, BOE Organizations: Bank of England, Wednesday, Virgin Money, Santander, Morgan's Locations: London's, Oversnap
The Federal Reserve likely will stick to the business at hand when it wraps up its meeting Thursday with another interest rate cut, but will have its eye on the future against a backdrop that suddenly has gotten a lot more complicated. The focus, though, will turn to what's ahead for Chair Jerome Powell and his Fed colleagues as they navigate a shifting economy — and the political earthquake of Donald Trump's stunning victory in the presidential race. So while the immediate action will be to stay the course and enact the cut, which equals 25 basis points, the market's attention likely will turn to what the committee and Powell have to say about the future. The fed funds rate, which sets what banks charge each other for overnight lending but often influences consumer debt as well, is currently targeted in a range between 4.75%-5.0%. Market pricing currently favors another quarter-point cut in December, followed by a January pause then multiple reductions through 2025.
Persons: Jerome Powell, Donald Trump's, Powell, Krishna Guha, Guha Organizations: Federal Reserve, Evercore ISI
Pan Gongsheng, governor of the People's Bank of China, delivers a speech during the 2024 Lujiazui Forum on June 19, 2024 in Shanghai, China. BEIJING — The head of the People's Bank of China said in a closely watched meeting Tuesday that the central bank planned to maintain supportive monetary policy, according to state media. PBOC Governor Pan Gongsheng added that the central bank intended to “increase the intensity of counter-cyclical monetary policy," state media said in Chinese, translated by CNBC. Finance Minister Lan Fo'an addressed the committee Monday about a plan to increase the local government debt limit in order to replace hidden debt, state media said. Lan on Tuesday also presented a report on managing state-owned assets, according to state media.
Persons: Pan Gongsheng, Lan Fo'an, Lan Organizations: People's Bank of China, People's Bank of, CNBC, National, Committee, Finance, U.S Locations: Shanghai, China, BEIJING, People's Bank of China, U.S . Federal
WASHINGTON — Americans are poised to elect a new Congress, with control of both chambers at stake as every seat in the House of Representatives and one-third of the Senate is up before voters on Election Day. Republicans favored to win the SenateIn the Senate, Democrats currently have a 51-49 edge, but Republicans are favored to capture the majority. They’re all but guaranteed to win an open seat in ruby-red West Virginia, with Democrat-turned-independent Sen. Joe Manchin retiring. If Harris wins, Republicans will need one more seat in addition to West Virginia to capture the Senate. In New York, Republicans are defending four seats they flipped in 2022, propelling them to win the House majority.
Persons: Kamala Harris, Donald Trump, Sen, Joe Manchin, JD Vance, Harris, Democratic Sens, Jon Tester, Sherrod Brown, Trump, Tim Sheehy, Bernie Moreno, Bob Casey, Debbie Stabenow, Tammy Baldwin, Krysten Sinema, Jacky Rosen, , Ted Cruz, Rick Scott, Dan Osborn, Republican Sen, Deb Fischer, Cook, Marc Molinaro, Mike Lawler, Anthony D’Esposito, Brandon Williams, D’Esposito’s, Williams, Laura Gillen, John Mannion, , Pat Ryan, Republican Alison Esposito, John Duarte, Adam Gray, David Valadao, Rudy Salas, Mike Garcia, Democrat George Whitesides, Ken Calvert, Will Rollins, Michelle Steel, Derek Tran, Mike Johnson, Hakeem Jeffries, Suzan DelBene, We’ve, ” DelBene, Joe Biden, Kevin McCarthy, Johnson, ” Johnson Organizations: Senate, Democrats, Democrat, GOP, Trump, Democratic, Republican, Republicans, Rep, House Democratic, , NBC News, Treasury Department, White House, Congress, Affordable Locations: WASHINGTON, West Virginia, R, Ohio, Montana and Ohio, Pennsylvania, Michigan, Wisconsin, Arizona, Nevada, Texas, Florida, Nebraska, New York, California, Hudson, D, Pennsylvania , Michigan, Arizona , Nevada, Pacific
Bernie Marcus, the co-founder of Home Depot who became a billionaire philanthropist and GOP donor, has died at the age of 95. "The entire Home Depot family is deeply saddened by the death of our co-founder Bernie Marcus," the company said. Born to Russian-Jewish immigrants in 1929, Marcus grew up in Newark, New Jersey, according to a biography shared by Home Depot. According to Forbes, Marcus had a net worth of about $11 billion at the time of his death. A longtime booster of Atlanta civic projects, Marcus donated $250 million to help build the Georgia Aquarium, among the largest in the world.
Persons: Bernie Marcus, Bernie, He’s, Marcus ’, Marcus, Arthur Blank, Ken Langone, Forbes, Jeb Bush, Scott Walker, Donald Trump, Hillary Clinton, Trump Organizations: Home Depot, CNN, Rutgers University, Atlanta Falcons, NASDAQ, Georgia Aquarium, Florida Gov, Wisconsin Gov Locations: Russian, Newark , New Jersey, Atlanta, Florida, United States
Cryptocurrencies were slightly higher as investors looked forward to results from the U.S. presidential election. We believe bitcoin, being less than 0.1% of global financial assets, has enough headroom for growth regardless of election outcome." "A constructive crypto friendly SEC would open opportunity for all crypto assets beyond bitcoin," he said. And … if either side pushes towards a crypto friendly SEC. The Trump side has promised a crypto friendly SEC, while the Harris side has promised to defend ownership of crypto assets, although the crypto community would have preferred more specific crypto policy from Harris."
Persons: memecoins dogecoin, Shiba, bitcoin, Mara, Coinbase, Kamala Harris, Donald Trump, Harris, Bernstein, Gautam Chhugani, Chhugani, there's, Trump, Gary Gensler, Sen, Elizabeth Warren Organizations: U.S, Metrics, Solana, Mara Holdings, SEC, Trump, Securities and Exchange Commission Locations: bitcoin
China reviews plan to increase local government debt
  + stars: | 2024-11-05 | by ( Evelyn Cheng | ) www.cnbc.com   time to read: +1 min
BEIJING — A closely watched meeting of China's parliament standing committee on Monday reviewed a proposal to raise the local government debt limit, according to state media. New debt would go toward replacing hidden debt, the report said, noting that Finance Minister Lan Fo'an spoke at the meeting on the plan. Lan indicated at a press conference last month that an increase in the local debt limit was in the works. Local authorities in China have historically been responsible for much of public services spending, but have struggled financially as revenue from land sales to developers has dropped. China has about 50 trillion yuan to 60 trillion yuan (about $7 trillion to $8.45 trillion) in outstanding hidden debt, according to Ting Lu, chief China economist at Nomura.
Persons: Lan Fo'an, Lan, Ting Lu Organizations: of, Initiative, Local, Nomura Locations: Beijing, China, BEIJING
'The biggest issue of housing today'The housing shortage in the U.S. is "the biggest issue of housing today," said Orphe Divounguy, senior economist at Zillow. As of mid-2023, there's a housing shortage of 4 million homes, according to the NAR. Rent prices increased faster than tenants' wages during the pandemic. "We're seeing renters staying renters for longer because affordability has been so squeezed," he said. High rent prices not only affect your ability to save money to buy a home, it can affect your ability to pay down any existing debt, Lautz said.
Persons: homebuyer, Jessica Lautz, Orphe Divounguy, Jonathan Scott, Scott, Selma Hepp, Divounguy, Lautz Organizations: National Association of Realtors, NAR, HGTV, CNBC Locations: U.S
The bond market, which has already seen dramatic moves leading up to the U.S. presidential election, could see even bigger price action depending on the outcome. One big theme investors are considering is the possibility of a Donald Trump win and higher bond yields that could follow. "I expect them to be worried that Trump would enact all those tax cuts, and I think bond yields would rise." US10Y 3M mountain 10-year Treasury The benchmark 10-year Treasury yield surged 50 basis points in October, marking the biggest monthly increase since September 2022. "There is room for rates to move in either direction depending on [the] election outcome."
Persons: Donald Trump, Trump, Jeremy Siegel, Kamala Harris, Stephanie Roth, Roth, Siegel Organizations: U.S, Treasury, Federal Reserve, White, Republican, Senate, Wharton School, University of Pennsylvania, Trump, Wolfe Research
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailChina's debt swap plans won't help much, rumored real estate fund would have a greater impactVincent Chan of Aletheia Capital says that China's planned local government debt conversion is too small from a stimulus point of view, rather the rumored 4 trillion RMB fund to purchase unsold property inventory could help boost confidence in the real estate sector.
Persons: Vincent Chan, China's Organizations: Aletheia
Republican presidential nominee and former U.S. President Donald Trump speaks at a campaign town hall meeting in Lancaster, Pennsylvania, on Oct. 20, 2024. The filing was not telegraphed to investors beforehand and came as a surprise to traders not expecting it on Election Day, the very day the former president and Trump Media majority owner squares off against Vice President Kamala Harris. Trump Media, which trades under the ticker DJT, has seen volatile trading lately. Trump Media also reported about $2.6 million in revenue and a net loss of $363 million for the first nine months of 2024. Trump Media is continuing to "explore additional possibilities for growth."
Persons: Donald Trump, Donald Trump's, Kamala Harris, Devin Nunes, CNBC's Kevin Breuninger Organizations: Trump Media, Revenue, Company Locations: Lancaster , Pennsylvania
US debt is surging and Trump and Harris's plans will only add to the pile, the former FDIC chair says. Sheila Bair warns that high debt cause the next financial crisis. She says neither candidate has focused on the crisis because higher taxes and lower benefits would drive away voters. Surging debt levels could cause the next financial crisis if left unchecked, Bair warned. "Now, the resulting overhang of federal debt could itself be the cause of a future crisis," Bair wrote in an op-ed last week.
Persons: Sheila Bair, , Bair, Trump's, Harris's, don't, it's Organizations: Trump, Service, Treasury, Investors, CNBC
Bernie Marcus, who co-founded The Home Depot with Arthur Blank, has died at the age of 95. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementBernard Marcus, the co-founder of Home Depot, has died at the age of 95. Along with Arthur Blank, Marcus opened the first two Home Depot stores in Atlanta in 1979. Here's how Marcus and Blank built Home Depot.
Persons: Bernie Marcus, Arthur Blank, Marcus, Blank, , Bernard Marcus, Bernie, Here's Organizations: Service, Home, Home Depot Locations: Atlanta
10-year Treasury yield rises with all eyes on the U.S. election
  + stars: | 2024-11-05 | by ( Yun Li | ) www.cnbc.com   time to read: +2 min
The 10-year Treasury yield traded 7 basis points higher at 4.6%. The yield on the 2-year Treasury was also up by 6 basis points to 4.27%. Treasury yields rose in early trading Tuesday evening as investors awaited results from the tight presidential race between Vice President Kamala Harris and former President Donald Trump. "I expect them to be worried that Trump would enact all those tax cuts, and I think bond yields would rise." The benchmark 10-year Treasury yield surged 50 basis points in October, marking the biggest monthly increase since September 2022.
Persons: Kamala Harris, Donald Trump, Jeremy Siegel, Trump, Harris, Stephanie Roth, Siegel Organizations: New York Stock Exchange, Treasury, Trump, Republican, White, Senate, Wharton School, University of Pennsylvania, Wolfe Research, Federal Reserve
The couple's move from California to Maine meant they could afford living off one income. AdvertisementThis as-told-to essay is based on a conversation with Michael Johnston, 41, a stay-at-home dad who lives in Old Orchard Beach, Maine. After maternity leave, my wife was excited to see her coworkers and jump back into her job. When others find out I'm a stay-at-home dad, they always ask: "When are you going back to work?" We are trained to graduate, get a good job, work that job forever, then retire at 65.
Persons: Michael Johnston, , Maddie, Lincoln, Johnston, Michael Johnston Crunching, we'd, We'd, I'd Organizations: Service, Boston University, KLA Corporation Locations: California, Maine, Old Orchard Beach , Maine, China, Taiwan, South Korea
However, a debt consolidation loan isn't a one-size-fits-all solution, says CFP Uziel Gomez. While I try to avoid carrying high-interest debt and aim to pay my credit card balance in full each month, as a financial coach, people often come to me feeling overwhelmed and wanting help with looming credit card debt. Sometimes, a debt consolidation loan can help, but it's not always the answer. If someone isn't ready for debt consolidation, Gomez recommends whittling away at your credit card payments using either the snowball or avalanche debt payoff method. You haven't established good habitsIf you haven't established good habits to keep your credit card spending to a minimum, it's probably best not to consider a credit card debt consolidation loan or balance transfer card.
Persons: Millennials, Xers, Uziel Gomez, , it's, that's, Gomez, there's, whittling, he's, haven't, let's Organizations: Service, New York Federal Reserve, Primeros Locations: LA
New York CNN —Bernard “Bernie” Marcus, the billionaire Home Depot cofounder and a Republican megadonor, who in recent years became an outspoken supporter of former President Donald Trump, has died, the company announced Tuesday. “The entire Home Depot family is deeply saddened by the death of our cofounder Bernie Marcus,” The Home Depot said in a statement. The Home Depot got its start in Atlanta, a city where Marcus was a well-known philanthropist with his wife Billi. Some Trump opponents attempted to launch a boycott of The Home Depot in 2016 and in 2019 because of Marcus’ support of the Republican nominee for president. I don’t want to work — I’m too lazy, I’m too fat, I’m too stupid.’”“We used to have free speech here.
Persons: New York CNN — Bernard “ Bernie ” Marcus, Republican megadonor, Donald Trump, Bernie Marcus, , , Bernie, ” Marcus, Arthur Blank, Marcus, Blank, Handy, Billi, “ He’s, John McCain, Ron DeSantis, Marcus ’, Organizations: New, New York CNN, Republican, Rutgers University, Depot, Marcus Autism, Emory University, Georgia Aquarium, Trump, Fox News, Fox Business, The, Financial Times Locations: New York, Newark , New Jersey, California, Atlanta, Georgia, Florida, America
Josh Rose graduated from college at age 39 after nine years of active service in the military. Rose spent five years in the Air Force and four years in the Army on active duty. It paid well and was familiar from my time in the Air Force, but looking back, it was a mistake. I graduated at 39 and got a software engineering jobIt wasn't until May 2024 that I graduated from college at age 39. I feel behind in life, but I think finishing college was the right choiceHaving a degree boosted my confidence.
Persons: Josh Rose, , Rose, didn't, I'd, Bill, I'm Organizations: Service, United States Armed Forces, Air Force, Army, University of Arkansas, Air, Federal Aviation Administration, FAA, Fortune, Business Locations: Texas, Afghanistan
Zaslav wanted a deal to happen. The problem, per Paramount: Zaslav didn't want to write a big check to Paramount owner Shari Redstone. What wasn't well-known: Zaslav spent months hanging around the basket, hoping that he could somehow land a Paramount deal. AdvertisementA week later, Paramount says, Zaslav talked to Bakish and told him he'd still love to make a deal. AdvertisementSo here we are today, nearly a year after WBD and Paramount first discussed a deal.
Persons: David Ellison, Larry Ellison's, David Zaslav, Zaslav, Shari Redstone, , Ellison, Larry, I've, WBD, Per, Bob Bakish, Bakish, he'd, Shari Redstone's, Paramount's Organizations: Paramount, Warner Bros ., SEC, Service, ers, Warner Bros Locations: writedowns, Zaslav
Goldman Sachs has modeled out some election outcomes, along with how the S & P 500 will react, ahead of the results. Trump wins and Republicans sweep A 25% likelihood, with the S & P 500 set to rise 3%. Trump wins, but the government is divided A 30% likelihood, with the S & P 500 set to gain 1.5%. This scenario will still be positive for markets, with the S & P 500 set to gain 1.5% afterward, the note read. However, investors could step in and buy the dip on the S & P 500, the firm said.
Persons: Goldman Sachs, Donald Trump, Kamala Harris, Trump, Harris Organizations: U.S, Republicans, Trump, Republican, Nasdaq, Democratic Locations: Wednesday's, cyclicals
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