Transcript:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
The S&P 500 cracked 6,000 for the first time in history Friday as investors were heartened by a Fed rate cut and President Trump’s White House win. Preliminary data from the University of Michigan showed consumer sentiment jumped to its highest since April. On the earnings front, Paramount Global’s streaming business turned a profit thanks to 3.5 million new subscribers.
A new week will bring quarterly numbers from the likes of Home Depot and Walt Disney. Consumer and wholesale inflation updates, as well as October retail sales data are on the calendar as well.
Related: Tesla expert reveals post-election scenarios for EVs and Elon Musk
In corporate headlines, Elon Musk’s Tesla (TSLA) is the newest company to join the $1 trillion club. Shares of the electric car maker have been on a tear ever since Donald Trump’s re-election on Tuesday. Investors are betting that Musk’s super-close ties with Trump will mean lighter regulations and higher sales.
Actually, it's the second time Tesla has been a $1-trillion company. The last time Tesla shares traded above that level was in April 2022.
In a note to clients this week, Wedbush Securities analyst Dan Ives told investors “Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Trump had been lukewarm to the electric car market until Musk went all-in on his re-election efforts. Musk poured at least $130 million of his own money to get the president a second term. Investors believe it is now less likely Trump will get rid of the government’s $7500 EV tax credit that has helped spur Tesla sales.
Shares of Tesla are up 30 percent in 2024; nearly all of that came in a post-election boom.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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