U.S. shares staged a dramatic comeback yesterday, led by banks and healthcare stocks as investors bet on the prospect of less regulation under a Trump administration, while Treasury yields rose to their highest level since January. The broad move higher in stocks is continuing across the globe today, though the speed of the reversal is leaving some market watchers scratching their heads.

Economy

Standard & Poor's has given the all-clear to America's credit rating, affirming it at 'AA+' with a stable outlook. "We assume the longstanding institutional strengths and robust checks and balances of the U.S. will support policy execution in a Trump administration, despite the president-elect's lack of experience in public office," the ratings agency said. Moody's announced in September the election wouldn't impact its 'AAA' rating for the U.S.

The Reserve Bank of New Zealand lowered interest rates overnight, becoming the first central bank to respond to market volatility in the wake of Donald Trump's U.S. election win. "Numerous uncertainties remain, particularly in respect of the international outlook," RBNZ Governor Graeme Wheeler said. The bank cut its overnight cash rate by 25 bps to a record low of 1.75%.

Over the weeks and months ahead, markets will watch Fed Chair Janet Yellen and President-elect Donald Trump to see if she resigns, he asks her to resign or they find a way to coexist. While Yellen's term is officially up in February 2018, about 16 months away, many administrations have worked in one way or another to oust a Fed chairman.

Donald Trump is scheduled to meet Barack Obama at the White House this morning to discuss the transition of power. Trump will then meet with Vice President-elect Mike Pence and Speaker Paul Ryan to discuss how they can hit the ground running in a Trump administration. That meeting will take place in the afternoon at the Capitol Hill Club.

China will seek support for a Beijing-led Asia-Pacific free trade area at a regional summit in Peru later this month after Trump's election win dashed the likelihood of a U.S.-led free trade pact. Obama had framed TPP, which excluded China, as an effort to write Asia's trade rules before Beijing could, while Trump has taken a more protectionist stance on trade issues, labeling the pact a "disaster."

While Foreign Minister Claudia Ruiz Massieu reiterated that Mexico will not pay for Trump's proposed border wall, President Enrique Pena Nieto did call to congratulate him and agreed to meet before he takes office. As Trump strode toward victory, the peso plunged 13% to lifetime lows, but officials held back from taking action to support the currency.

Egypt has secured $2B in financing from international banks, a day before the IMF's board meets to consider a $12B loan officials say will help restore investor confidence in the economy. The central bank said the repurchase transaction with overseas banks has a maturity of one year, with the funding provided against newly issued dollar-denominated sovereign bonds.

The oil market risks running another surplus in 2017 without an output cut from OPEC, according to the IEA's monthly oil market report, which warned of "another year of relentless global supply growth similar to that seen in 2016." Global supply rose by 800K barrels per day in October to 97.8M bpd, led by record OPEC production and rising output from non-OPEC members like Russia, Brazil, Canada and Kazakhstan.

Stocks

Pfizer is evaluating a potential sale or spinoff of its consumer health division that could value the unit at as much as $14B, Reuters reports. An exit from the business, which includes Chapstick and Advil, would be one of the company's biggest corporate moves since abandoning a $160B deal to buy Allergan (NYSE:AGN) earlier this year. PFE +1.5% premarket.

More spinoffs? Siemens (OTCPK:SIEGY) is planning a public listing of its $15B healthcare business to refocus on its core strengths of electrification, automation and digitization. The German group announced the move as it reported fourth-quarter profits that comfortably beat expectations, but issued a cautious outlook for the current fiscal year as orders dropped amid geopolitical uncertainty.

Hanjin Shipping has drawn two final bids for the assets of its Asia-U.S. route and its stake in a California terminal, as the beleaguered company is broken up as part of a restructuring plan. A judge at the Seoul Central District Court, which is handling Hanjin's (OTC:HNJSF) insolvency proceedings, said the court planned to choose a preferred buyer by Monday and sign a formal contract by Nov. 21.

There's a new Goldman Sachs partner class. The bank has elevated 84 employees to the coveted rank, bringing the total number of partners to around 484, or 1.4% of Goldman's (NYSE:GS) work force. Partners, a title that remains among the most prestigious on Wall Street, typically receive a $950,000 salary, a cut of a special bonus pool and the opportunity to invest in private funds.

Goldman is also considering shifting some of its assets and operations from London to Frankfurt, according to Reuters, as it tries to secure access to the EU market when Britain leaves the bloc. Coming under the ECB's jurisdiction should allow it to continue selling its services to clients across the eurozone and wider EU post-Brexit. GS +1.1% premarket.

Navinder Sarao, the British financial trader accused of causing the 2010 "Flash Crash," has become the second person convicted of criminally spoofing after pleading guilty in a Chicago court. Spoofing is rapidly placing orders with the intent to cancel them before they trade in order to trick other investors by creating the illusion of demand.

Valeant received an investigative subpoena from the California Department of Insurance in September following allegations that it forced customers to pay higher prices for its drugs. The request seeks materials including documents concerning Valeant's (NYSE:VRX) former relationship with Philidor, now defunct, and certain pharmacies responsible for the marketing and distribution of its products in California.

Sudden departure at Twitter... Chief Operating Officer Adam Bain is leaving to pursue new opportunities as the company emerges from the shadow of a potential sale and struggles to regain momentum. Bain's role will be filled by Twitter (NYSE:TWTR) CFO Anthony Noto, who has been leading efforts around live video and brokering deals with media companies, including the $10M deal with the NFL reached this spring. TWTR -2.2% premarket.

Adapting to the reality that Black Friday shoppers are increasingly buying online, Walmart (NYSE:WMT) is significantly boosting how much merchandise it will sell digitally that day. Chief merchandising officer Steve Bratspies told reporters that Walmart will increase inventory for deals by more than 50%, while making them available on its website early Thanksgiving morning.

Some Yahoo employees were aware that a state-sponsored hacker had breached its network shortly after a massive hack in 2014, casting a larger shadow over Verizon's (NYSE:VZ) $4.8B deal to acquire the company. Yahoo (NASDAQ:YHOO) said in September that an investigation had uncovered the theft of personal information associated with at least a half billion accounts, the largest data breach in history.

Wednesday's Key Earnings

Dish Network (NASDAQ:DISH) +2.2% despite losing more subscribers.
Mylan (NASDAQ:MYL) -2% AH hurt by lower EpiPen volumes.
Silver Wheaton (NYSE:SLW) -0.3% AH missing estimates.
Shake Shack (NYSE:SHAK) +8.2% AH beating expectations.
SolarCity (NASDAQ:SCTY) +0.7% AH after expanding installations.
Taser (NASDAQ:TASR) +6.9% AH following a Q3 beat.
Viacom (NYSE:VIA) -1.1% AH as networks, movies slumped.

Today's Markets

In Asia, Japan +6.7% to 17344. Hong Kong +1.9% to 22839. China +1.4% to 3171. India +1% to 27517.
In Europe, at midday, London +0.6%. Paris +1.1%. Frankfurt +1%.
Futures at 6:20, Dow +0.7%. S&P +0.7%. Nasdaq +0.9%. Crude -0.2% to $45.16. Gold +0.6% to $1280.80.
Ten-year Treasury Yield flat at 2.06%

Today's Economic Calendar

8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
1:00 PM Results of $12B, 30-Year Note Auction
2:00 PM Treasury Budget
4:30 PM Money Supply
4:30 PM Fed Balance Sheet