Markets pause but Nasdaq shares are in demand

Dow was even, advancers over decliners about 2-1 & NAZ went up 154.  The MLP index added 2+ to the 294s & the REIT index was up 2+ to the 421s.  Junk bond funds were mixed & Treasuries had selling which brought higher yields (more below).  Oil gained 1+ to the high 68s & gold rebounded 46 to 2616.

Dow Jones Industrials

Pres-elect Trump's return to the White House will no doubt bring changes to the automotive industry, as he has vowed to roll back many of the Biden administration's policies & replace them with his own.  While some of Trump's 2.0 agenda will be familiar from his first term, he added some planks to his platform during the last campaign that could reshape parts of the sector.  Trump has vowed to do away with the EV mandates imposed on the auto industry & the broader American public.  Scott Kunes, COO of Kunes Auto Group, said that dealers like him are excited to see what's coming down the pike in the next administration, particularly surrounding EVs & Trump's platform of deregulation.  "I think most of us have been screaming from the rooftops a little bit that we can't force this EV transition," Kunes said.  "And while we want to be good partners with our manufacturers, and we want to provide our consumers what they want, the [Biden] administration forcing this EV transition –  not only on the manufacturers, but us as dealers – has had a pretty serious detrimental effect to our business."  But unwinding some of the policies rammed through in the EV push over the past 4 years could prove complicated.  Kunes, whose company oversees more than 40 dealerships, said he does not expect a complete reset on the EV front, because manufacturers & dealers alike have far too much invested in them at this point.  But he is hoping the Trump administration will ease Biden's administration's emissions rules, which effectively require that nearly all new vehicles must be EVs by 2032.  Trump's transition team is looking to get rid of the $7500 federal tax credit for EVs enacted during the Biden administration.  But Kunes hopes Trump will keep those incentives in place, so dealers can continue to push the EV vehicles that are already on their lots.  "We are in a losing proposition here, because right now the consumers that have switched to EV mostly have done so through leasing, because they can take those tax incentives right up front, it affects the payment, and it really fits their budget well at that point," he explained.  Regardless of Trump's policies surrounding EVs, Autotrader & Kelley Blue Book Executive Editor Brian Moody said he does not anticipate significant changes in the industry in the short term on that front.

Inside Trump's plan for auto industry as president-elect sets sights on Biden rules

CVS (Health) (CVS) announced that it struck a deal with dissident investor Glenview Capital for four board seats, just a few weeks after the healthcare giant ousted former chief Karen Lynch.  Glenview CEO Larry Robbins will join the CVS board effective immediately, alongside 3 other directors, which CVS said emerged from a “productive discussion” with Glenview.  CVS’ board will expand to 16 members.  “In our discussions with the leadership at Glenview, we agreed that we can deliver greater value from our integrated businesses to all of our stakeholders,” CVS chair Roger Farah said in a release.  The other new directors are Leslie Norwalk, Guy Sansone & Doug Schulman.  Glenview amassed a sizable stake in the healthcare conglomerate & worked with management in the lead-up to Lynch's ouster.  “We appreciate the board engaging with us on a cooperative basis that allows all energies to be productively dedicated towards further strengthening this iconic company,” Glenview's Robbins said.  CVS has had a challenging year, driven in part by difficulties with its Medicare Advantage business.  It initiated a strategic review this fall & has begun to lay off workers in a multi-B $ cost-cutting drive.  The stock rose 2.85 (5%).

CVS strikes deal with activist Glenview Capital for four board seats

The 10-year Treasury yield ticked higher as investors looked ahead to fresh data & central bank commentary after closing out a week of gains.  The yield on the 10-year Treasury note rose 3 basis points to 4.457% & the 2-year Treasury yield traded less than 2 basis points higher at 4.318%.  Yields & prices have an inverted relationship & 1 basis point is equivalent to 0.01%.  Investors are continuing to digest comments from Federal Reserve Chair Jerome Powell, who suggested late last week that the central bank may be less aggressive in its rate-cutting agenda going forward.  It comes as inflation was seen ticking up slightly in Oct & as Pres-elect Trump's anticipated fiscal policies weigh on the wider economic outlook.  Yields have shot up in recent weeks in the wake of the election due in part to the hope that Trump's presidency could boost economic growth.  Fresh housing, consumer confidence & manufacturing data are all on the docket this week, with initial jobless claims on Thurs.

10-year Treasury yield ticks higher following week of gains

The stock market was a little higher amid fading optimism for interest-rate cuts.  Stocks are starting the week on the back foot as the prospect of higher-for-longer rates holds post-election bullishness in check.