Morning Brief

Global stock markets pare their losses after Trump victory

Key Points


Following a surprising Donald Trump win, Dow futures were sharply lower this morning, but recovered from an 800-plus point decline around midnight on the East Coast, when the election really appeared to be turning in Trump's favor. (CNBC)

News that Trump won the U.S. presidency around 3 a.m. ET came after the close in Asia, which saw Japanese stocks plunge nearly 5.4 percent. The Japanese yen surged against the dollar, while the Mexican peso plunged. Stock markets across Europe were off sharply. (CNBC)

Traditional safe haven gold was higher. In fact, the metal at one point was seeing its strongest rally since the Brexit vote. The rally in bond prices faded at the long end, and yields were actually started to move higher. Meanwhile, an initial oil stumble also turned around. (Reuters)

In reaction Trump's win, HSBC said in a note to clients that Trump's policies and lack thereof would hurt the economy, earnings, and possibly spark stagflation. Morgan Stanley told clients to stay on the sidelines during the Trump-driven sell-off in stocks. (CNBC)

Investors should stay out of the stock market after Trump's stunning win, Dennis Gartman, founder and editor of The Gartman letter, told CNBC. Go to cash "if you're not already there," he added.

In a gracious early morning victory speech in New York City, Trump said Hillary Clinton conceded. He congratulated her on a hard-fought race, and vowed to be "president for all Americans." (CNBC)

Russian President Vladimir Putin congratulated Trump and expressed hope for joint work to restore Russia-U.S. relations in sentiments relayed in a telegram, according to the Kremlin. (Reuters)

Trump should remain committed to a key international nuclear deal with Iran, that country's foreign minister, Mohammad Javad Zarif, said this morning. (Reuters)

Tech billionaire and Facebook director Peter Thiel, who took heat in Silicon Valley for supporting Trump, congratulated the Republican victor. In a statement to CNBC, Thiel called for the country to come together.

In contrast, venture capitalist and Hyperloop One co-founder Shervin Pishevar told CNBC before the results were in that he wants to help California to secede from the U.S. in the event of a Trump win.

Clinton broke with tradition early this morning, declining to speak publicly after the Democratic nominee's election defeat. Instead, her campaign chairman, John Podesta, broke the news to supporters. Clinton is expected to speak today. (Huff Post)

Republicans also maintained control of the Senate and the House, which could mean that after years of trying to repeal Obamacare, the days could be numbered for President Barack Obama's health-care law. (Vox)

Voters in Arizona, Colorado, Washington and Maine were poised to approve an increased minimum wage, well above the federal pay floor of $7.25 per hour, which has held steady since 2009. (CNBC)

Residents in California, Massachusetts and Nevada voted to legalize marijuana, three more wins for the state-driven shift towards legalizing a substance the federal government still categorizes as a "most dangerous" drug. (NBC News)


There are two Fed officials set to speak today: Minneapolis Fed President Neel Kashkari at 1:30 p.m. ET and San Francisco Fed President John Williams after the U.S. markets close at 9 p.m. ET.

The Commerce Department issues September wholesale trade numbers out at 10 a.m. ET. The Energy Department releases its weekly oil and gasoline inventories data at 10:30 a.m. ET.

For another week, mortgage interest rates trended higher, and home loan demand fell. Mortgage application volume fell 1.2 percent last week, according to the Mortgage Bankers Association. Refis dropped 3 percent.

Earnings out this morning include quarterly numbers from Viacom (VIAB) and Norwegian Cruise Lines (NCLH), while drugmaker Mylan (MYL) and Shake Shack (SHAK) reports results after the bell this afternoon.


Walgreens (WBA) filed a $140 million lawsuit against embattled blood-testing firm Theranos, alleging the drug-store giant was misled by the one-time darling start-up.

GoPro (GoPro) is recalling its new Karma drone just weeks after the launch, after some of the units lost power during operation. The company is asking customers to return the product for a full refund.

TripAdvisor (TRIP) earned an adjusted 53 cents per share for its latest quarter, a penny above estimates, while revenue fell short of forecasts. Results were hurt by higher expenses and lower hotel revenue.

Billionaire investor Carl Icahn more than doubled his stake in Hertz (HTZ) to 34 percent, in the wake of the stock losing about a fifth of its value on disappointing quarterly results and an outlook warning.

Icahn also raised his stake in Herbalife (HLF) by nearly 4.8 percent, now holding about 24.2 percent of the nutritional products maker. Last Thursday, he increased his stake to 23.1 percent.