A trader wears a hat to support Republican Donald Trump after he won the U.S. presidential election at the New York Stock Exchange (NYSE) in New York City, the United States, on November 6, 2024.
Andrew Kelly | Reuters
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
China Inflation and Retail Sales
According to data from the National Bureau of Statistics, China’s consumer price index rose 0.3% in October compared with the same period last year. This was below expectations for a 0.4% increase. Meanwhile, analysts told CNBC in a report published on Singles’ Day, China’s massive shopping event celebrating singles, that China’s efforts to boost its birth rate are not enough. A rapidly aging population and sluggish price increases mean retail sales on Nov. 11 are likely to disappoint industry insiders.
Bitcoin new record
Bitcoin It is trading at $80,869.33, according to Coin Metrics. This is the first time the cryptocurrency has crossed the $80,000 mark. Traders believe Bitcoin will soar higher. They poured more than $2.8 billion into the options market, betting that the price of Bitcoin would exceed $90,000.
Tesla’s market cap is $1 trillion
Tesla’s Shares rose 29% last week, driven by Donald Trump’s victory, and the market value topped $1 trillion on Friday. It’s up 30% so far this year. Meanwhile, Chief Executive Elon Musk endorsed Senator Mike Lee’s idea of allowing the president to intervene in Fed policy.
(PRO) Watch Inflation Data
Stimulated by Trump’s election as the next U.S. president and the Federal Reserve’s 25 basis point interest rate cut, the stock market has experienced a hot week. This week’s inflation data will determine whether the market boom can be sustained. CNBC Pro’s Sarah Min recaps what happened last week and what’s ahead for this week.
bottom line
When the numbers are this good, you have to start with them.
This week, S&P 500 Index up 4.66% Dow Jones Industrial Average Up 4.61%, NASDAQ Composite Index Soared 5.74%. If this sounds impressive, consider this: Small Caps Russell 2000 A surge of 8.57%.
The market has Trump to thank for this.
“Stocks are eager to price in Trump’s domestic growth policies,” Barclays strategist Venu Krishna said in a note to clients.
This is reflected in the Russell 2000’s sharp gains compared to other indexes. Smaller companies tend to be more closely tied to the domestic economy, a focus of Trump’s pledge.
Small-cap companies also have more floating-rate debt. With the Federal Reserve cutting interest rates by 25 basis points on Thursday, small-cap stocks will have less debt burdens, leading to higher profits.
However, the road ahead may not be so smooth.
Of the S&P companies reporting this earnings season, 84% beat profit estimates. But their earnings were “more subdued, and the percentage of companies beating sales expectations remains low,” JPMorgan strategist Mislav Matejka wrote in a note on Friday. Fundamentally, corporate financial health is what drives the stock market.
The economy may also experience some slowdown. Barclays said policies proposed by Trump, such as higher tariffs and stricter immigration, could reduce economic growth and increase inflation, or at least slow the pace of deflation.
Minneapolis Fed President Nir Kashkari also expressed caution about continued inflation. Kashkari said in an interview on Sunday that if the tariffs become “tit-for-tat,” “that becomes more concerning.”
In response, the Fed may further cut interest rates.
While Trump’s rallies have gotten off to a good start, it remains to be seen when they will end — and more importantly, how.
—CNBC’s Sean Conlon, Yun Li, Jesse Pound and Hakyung Kim contributed to this report.
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