Dramatically. Asian markets fell between 1 and 2 . In his victory speech last night trump struck an optimistic tone regarding americas future. We must reclaim our countrys destiny and dream big and bold and daring. We have to do that. Were going to dream of things for our country, and beautiful things and successful things once again. Jim, we talked to you last night before the race was actually called. Your thoughts this morning. Well, look, i think that people are going to be divided between those who say that he is pro business, not necessarily great businessman because we have people pro business, lower taxes, pro business, lower taxes are things historically that if it were anybody we would say thats good for the stock market. This is a man who likes his kne neilsen ratings. Hes very sensitive to the idea that stocks are overvalued. But at the same time i dont think he wants to hurt someones 401 k . I do believe that he has said that and has always been very comfortable with borrowing. He is far more likely, he said he wants to spend a trillion dollars on infrastructure. Would it shock me if this man comes out and says were going to do a 30year treasury. Its going to be a half a trillion dollars, were going to take that money, put it in infrastructure. That will be half my plan. Is that inflationary . Yes, thats something new. Will the fed have to raise rates . Yes, thats something new. But youll see this is exactly whats happening when you see a caterpillar move up, when you see the banks move up, theyre all anticipating the 500 billion 30year that this man could have in the first few days of his election. Last night 10year hits 1. 7. Today 1. 93. So you think markets already building in the implied inflation from that stimulus . The guy has said he wants a trillion dollar spending plan over ten years to be able to rebuild. He wants an eisenhower like plan, go back to 1954, 1955, eisenhower says country going into recession, lets go into highway system. He actually quotes eisenhower. I know its pedestrian to go back and look at what people said, but given the fact people think the man can be inconsistent. But at the same time higher rates is good for unfortunately not for your mortgage but for a lot of the companies. Turmoil is unbelievable for Goldman Sachs, for morgan stanley. We saw that with brexit. So i have groups like drug stocks where its hard to imagine that a Republican Congress is going to hector the drug stocks and the president echoed that. I have groups like the banks that i could say with this 500 billion possible Infrastructure Spending that are good. But if im selling into china, if i am selling into europe and i am saying we dont want your goods, but youve got to take ours, that will not work. We watch there the biotechs. You can go through a long list of things both pro and con in terms of groups that will move today. Right. Youre seeing the drug stocks, biotechs up. Why . Well, it does appear at least worries over drug pricing or caps of that kind will not be something that occupies a lot of time on capitol hill or in the white house. Nope. The proposition 61 failed in california. Youre also seeing the hospitals lower. Thats not a big market cap part of the company excuse me, part of the market. But theyre lower significantly because of the belief that the Affordable Care act will be overturned and probably pretty quickly. Yeah. I imagine that will happen quickly. And i think that the impact here i cant emphasize enough there are until monday and tuesday we were on a path as you were talking about nine Straight Days down. That was the post comey, i think comey did not play that big a role a general you guys had such a great show last night. Im not chuck todd. But i do feel strongly that the Health Care Group is anticipating a 1992like 18 months of pain we had started september 25th of 1992 when thencandidate clinton went to and spoke to merck and said prices are too high. People thought that could happen again, that is off the table. Youre seeing biogeneral go crazy and drugs go crazy. The reason banks are going crazy is because they need inflation. Because they are not going to raise your deposit rate, but i got to tell you may i suggest if you havent bought that house, i know this is general for not the today show audience, lock it in. Lock it in. 30year fixed if you can. 30year fixed lets hope the paperwork i mean, i would buy ellie may. The other broad positive i heard from investors this morning certainly is the idea of tax reform. Weve talked a lot about it. Corporate america certainly would embrace broad tax reform, lowering the rate as mr. Trump, president elect trump has said he would do. And of course the repatriation of as much as 2 trillion that is overseas. That also is something that would appear to be early business for this congress. Of course republicans in control of both parts of congress and the white house. You could not be more right. They dont even need supermajority. They can use reconciliation process to vote tax reform. So thats something that could come quickly and certainly is seen by investors as a positive. All of that money coming back, some of it to be used for infrastructure perhaps, though again we dont know any details here whatsoever. But let me say and what davids comments echoed is the 4 00 to 9 00 Business Cycle that were seeing. So i watched apple be down 3 when i was talking with sara and wilf. Apple has 225 billion overseas. Microsoft has 102 billion overseas, alphabet, google 32 b. Amgen 31 billion, take a look at the way those stocks have traded in the last 45 minutes. Its rather remarkable. Theyre all up. Yeah. That moneys coming back. Its funny i talked to a company that has a sizable amount of cash overseas. So how long will it take to actually bring the money back . About an hour. About an hour. About an hour. And ill do it through goldman. Ill do the wire through goldman and theyll charge me a nice and Goldman Sachs makes the quarter and then sm. Yeah. A lot of disagreement about whether last night was a tradeable bottom. Whether or not we see some lower lows here. Given everything we dont know which we just talked about and at 11 47 i turned to my wife who said will you shut it off already, i said this is it. If i were a hedge fund manager, i dont care, just blindly buy. Pa ja ma trade is cleaned up. Investors like, boy, i wish i could do the show right now. The problem is that came and went. Now, lets understand we had a 2 rally when we thought hillary was going to win. So we kind of take the clock back to friday. But the problem is that the stocks have been so beaten up, health care and health care short term and banks over the last three years. Right. I mean, if youre going to raise rates, you borrow 500 billion. I used to heckle tim geithner saying please borrow 500 billion and put people to work. Trumps piled 500 billion and built casinos. Thats facetious. Thats an exaggeration. But he has a propensity to want to borrow. Maybe it extends to the white house. But to this broader question of consistency or lack of it and the fact he said things people are uncertain will actually happen and then has said other things that seem to contradict what he said earlier, do we have to wait and see what the actions are as opposed to actually hearing them first . Yes. Doesnt that make the markets very volatile for a long period of time throughout the presidency . Unless theres a sense of some consistency thats established . Who do you appoint if youre antiestablishment . Who do you appoint . Now im going to be close to home, im going to go into our kitchen for a second because i watched your show last night. Larry kudlow, my former partner from kudlow and cramer, by the way antiprotectionist. So lets put that on the table. But does larry kudlow get a call today . Does scar much get a call today. Thats a delicate dance. Im putting this out there as meaning i dont know who an antiestablishment candidate suggests for the Federal Reserve. Is this one of those raise less corn more hell populist movement right now where its william where were stapled across gold. Are we going to get William Jennings brian populism, who knows what he would do, or mckinley republicanism . I dont think you know until you see the whites of their eyes which means appointments. What about trade . What about the expectation he could try and repeal nafta and all the things that will come with that . Again, is that something we can expect . Its certainly been a key part of his appeal. Have to. Have to. Have to. Look, when nafta was created, the ratio of the peso to the dollar was not 20 1. People in mexico getting 2. 75 an hour, thats the lowest in the world. If youre bmw right now and trying to figure out whether to put that plant in pueblo, or south carolina, i think youre probably thinking we maybe ought not to do that thing, maybe we put this plant longer term, i know gets you, john, machines are replacing those jobs anyway even if they come here. Were manufacturing more in this country than we ever have with fewer people. With a ppg plan and a harmon plant, i totally agree. You dont want to own the Car Companies because they are the ones that would be retaliated against. Remember, theres a retaliation issue. I had yum china, yum china comes public, all of a sudden how do i feel . I want to own yum rest of world rather than yum china if i am just kind of blindly thinking about how china has to retaliate. I notice constellation chrks has a full day Analyst Meeting is down 20 on a sell. 20 of constellations beer is made in mexico. Unless you slap a tariff immediately on beer, highly unpopular concept on modelo and coro corona. I dont want to be two grand but im saying cmx and ksu were the ones, do you want to own ksu which has 50 of its business taking materials from mexico to here . That would not be what id reach for first. However, Norfolk Southern, which is the company that managed to do incredibly well even with coal down gigantically, ill reach for that right now. James squire was on mad money last week. Im a banker. I bank with james squires. You did draw our attention to ksu a long time ago. Yeah, thats the fulcrom name. Well get to how all of this affects m a, infrastructure, coal, tariffs, the fed, obamacare and more. But first lets get to our chief washington correspondent john harwood after a long night at hq on trumps victory. Hey, john. Hey, carl. It was a long night. And i think weve got to stop and look back again at what a tremendous victory donald trump won. He proved his analysis of what was likely to happen correct and that of every other pundit, all the pollsters, yours truly, wrong. Donald trump has gotten over 278 electoral votes so far. We still dont know the results, final results in minnesota, in michigan, New Hampshire and arizona. In the Senate Republicans won a tremendous and unexpected victory there. They have got at least 51 seats. We have two seats still uncalled. That means that Mitch Mcconnell will remain the Senate Majority leader. And in the house of representatives, democrats did not come anywhere close to taking control. In fact, at the moment theyve got 195 seats. Republicans have 240, but we have some a few still to be called. 240 is a very robust result for republicans. And now Hillary Clinton and president obama face tests that they never expected to face. That is to say it is now incumbent upon them along with donald trump to try to bind up the divisions of this campaign. We will hear from Hillary Clinton. We expect that about 10 30. Well hear from president obama. President obama now has the responsibility for conducting a transition for someone he denounced so strongly during the campaign. Thats going to be a challenge for him to work with donald trump and make that successful. I think the analysis that david and jim were just giving was spoton. Were in a period now where were going to find out which of the various things that donald trump has said are truly important to him, how he prioritizes and how he makes those things work with republicans in congress. Let me just give you a couple of examples. What do we know about donald trump . He likes to borrow, says hes the king of debt. He likes to build. So i think the idea of a major Infrastructure Investment as jim was just saying, i think youre going to count on that as something very likely to happen. The question is what happens on the flip side, what happens on the deficit side, same is true on tax cuts. I think donald trump clearly wants to cut taxes. Are they going to be closing loopholes to keep the deficit down . I think thats a much less safe bet. You can count on the Transpacific Partnership being gone, and i think nafta given something where donald trump was hes going to have to use the authority he has to attempt to withdraw from that deal. And well see what the consequences are. On top of that, john, its not as chuck todd said on squawk this morning, its not like he owes any other faction of the party anything. He owns all of this. Right. He owns all of it. And, you know, the rub on some of these things is going to come you know, particular kind of populism that donald trump has aspoused embraces parts of what traditional republicans, paul ryan republicans believe in in part that he doesnt. Donald trump is not interested in entitlement reform. He is interested in tax cuts. Paul ryan likes the latter, he doesnt like the former. So if we get a very deficit expanding infrastructure plan and tax cut plan, what then does paul ryan do about entitlements, which is something he deeply believes in. And if he believes in it, will republicans follow him . Because hes got a huge faction within his House Republican caucus that is more loyal to donald trump than to him. Lots of questions and not many answers right now. John, stick around. Were going to be talking a lot more about this today. Its funny you look at the tape underneath and watch im always a creature of the tape. And you see how wrong everything was in the morning. Could be wrong again today. But as we get closer, for instance, im seeing pipeline stocks under pressure. Let me say how stupid that is. The american system is based on natural gas. And if it stays cold, then we need more natural gas. Its in the wrong place. Its in the marseilles, this country had turned the administration turned violently antipipeline. Now, i think the idea pipelines which puts a huge number of people to work in the 1930s was biggest creator of jobs is something you want to suddenly embrace, thats a williams, thats an energy transfer. I dont want to be too granular other than to say oil and gas people want to go buy drill, drill, drill. Listen, you cant drill, drill, drill if oils at 43. But you can pipe, pipe, pipe. I think youre right. And ive seen notes to that effect as well about pipeline stocks actually being beneficiaries. They are beneficiary. On the larger question though president elect trump has called Climate Change a hoax, perpetrated by china. He has talked, i think, about eliminating the epa if not many of its regulations. Right. One would expect if you are a solar company, for example getting subsidies still for your panels, or anybody involved in different and new forms of energy. Right. Youve got some issues today. You buy duke energy which is the most levered coal company. You have utilities. And you sell first solar or solarcity. But duke now, im here to tell you all these Utility Companies got the warning, they do not switch on a dime. These are 15 billion capital programs, but duke might be able to say, hey, listen, we built a lot of plants because jimmy carter in the fabled 1979 speech said were the saudi arabia of coal lets put up 40year plants. These 40year plants are all coming due and so therefore were going to just roll the dice rather than epa coming in saying, listen, you got to shut those. Theres not going to be new coal plants built. Coal isnt Even Economic versus natural gas. You know, and i see Union Pacific down three. Now, Union Pacific down three and river basin not that powerful form of coal. And Union Pacific is viewed as being a trade partner with china of the rails. China is a problem. China is a problem because i mean, i remember the first time i interviewed mr. Trump at his place, you know, he asked me my view on china, said actually this is more an interview of you than it is me, but thats often the case when you interview donald trump. He doesnt like china. He wants to be as protectionist as possible with china. That means if you are trying to sell a lot of shampoo in china, youre sitting there right now and saying, gee, i hope they dont know its american shampoo. Right. Well, your point about trump and what he can do for fiscal stimulus infrastructure is one thing. We dont know what the reaction from nato, the president is going to europe now, we dont know what the asia response will be. Theyre in. Were getting responses from russia and now cuba a few minutes ago. You have iran. Can oil go up just because he takes back what he wanted to do with iran . Suddenly what our current president wants to do with iran, so suddenly they dont have the money to pump the 5 million a day to 6 million a day which then tightens the oil supply. Could that happen . Could the middle east heat up . I think militarily total wild card. Total wild card. And if we dont factor that in, we say, hey, we got to buy everything. Caterpillar in the last call said, you know what, chinas better, u. S. Is not good. You take away the not good by the infrastructure, suddenly you have a great situation. And then we see trade wars and we see europe down and next thing you know people say why did i buy a Machinery Company and atmosphere he was asked about it last night at his Victory Party and did not respond. A key component of his campaign from day one. And then the possibility of deporting a lot of people. That would be destabilizing for the economy too. Yes. No doubt. A lot of what is the labor force out there would be under fire. These are you know, i came in this morning and s