Welcome to squawk alley this morning on an important day. Got our top story, obviously, less than a day to go until the polls open. The markets are in rally mode. Were looking at almost a 300point increase on the dow after fbi director james comey said the agency will not reopen its investigation into Hillary Clinton and her private email server. Watching the Market Reaction here at the nysc, john, lets start with you. We have less than a day left before this election is wrapped up. A lot of americans going to breathe a sigh of relief over that. Take a look at the battleground map by nbc news, shows Hillary Clinton has enough states either safely or leaning her way to get over the 270 electoral votes, so Donald Trumps got to figure out how to tip those undecided and pull some back from Hillary Clinton. Thats the logic of his closing blitz. Lets take a look at his travel schedule today. While this is Hillary Clintons, first of all, shes going to be in north carolina, thats a state mitt romney carried four years ago that shes trying to pull out of trumps column, make his hill even steeper to climb. Youve got pennsylvania, thats core to him. Donald trump needs that, and michigan, as well, which is a state Donald Trumps trying to take away. Its been leaning to Hillary Clinton. So donald trump is going to more states because hes got more work to do. Hes going to be in michigan, hes also going to be in pennsylvania, hell be in north carolina, but adding two others he needs very badly, one is florida with 29 electoral votes and the second is the state of New Hampshire. He got a bad poll out of New Hampshire last night showing him down by 11 percentage points. Thats a much wider margin than weve seen lately, but its an indication of the work Donald Trumps got to do to try to overcome Hillary Clintons advantage. Guys . John, thank you for that. Lets get back to the markets, as well, and the rally, which looks now to be the best day since march 1st. Bob standing by. Bob . We are strengthening throughout the morning, still 91 advancing to declining stocks. Look at the s p, remember we dropped 3. 1 in the nineday slide weve had. We regained more than half of those losses just this morning here. In terms of sector, its so broad not only the Market Leaders are ahead, the market laggers are doing well, too. The Market Leaders, bank and tech, they are leading, but pharmaceutical stocks, the third group there, leading. Theyve been terrible performers, retail has been terrible, it, too, is a Market Leader today. Telecom started strong, then faded. That makes sense because the tenyear is trading to the upside. Big move in gold stocks, gold was over 1300, its down today. Not surprising big decline in the gold stocks, as well. Viks, remember we strike over 20 with the election being more competitive than people thought, now down at 17. Thats a big drop today, down about four points overall. Remember what the market has been like recently, strength in bank stocks, strength in transports, semiconductors, as well, but the rest of the market, frankly, hasnt been performing well. The laggers outnumber the gainers so far, so pharmaceuticals have been terrible performers, retail have been terrible, Consumer Staples and any Interest Rate sensitive groups like telecom and utilities have lagged. Today, though, they are all up. Carl, back to you. Ill take it, thanks, bob. Now lets talk impact on sectors, as well as the markets in general. Lets bring in chief investment strategist and anthony chan, chief economist at chase. Guys, thanks for being with us. Anthony, i want to start with you. If we look at sectors and sort of how they perform in the first year of a democrat versus a republican, democrats seem to have some pretty good numbers, particularly in technology and consumer discretionary, but as i look back at how often a democrat has followed another democrat after eight years, that hasnt happened since roosevelt truman, so what do the numbers really mean . These sectors are, in fact, doing well during a Democratic Administration, but also tells you this is an unusual election, because the Financial Sector actually does very well under a Democratic Administration, but yet we know that if we have a sweep of both the senate and the house, which is unlikely to happen, the Financial Sector is not likely to do well, but when you look at the republican, you look at some of their sectors, the Energy Sector does very well in a republican administration, real estate sector does very well, but when you look at the sectors that dont do so well under a Democratic Administration, something interesting, four out of the five worst performing sectors under a Democratic Administration still have double digit gains. Then when you look at the republican administration, the sectors that dont do very well mostly have negative rates of return, so i say that on a sector by sector basis, the democrats seem to have a slight edge here. James, given that this is so unusual, you know, how likely is it that whether Hillary Clinton wins or donald trump wins were more likely to have more of a republican type first year just based on the fact that historically these numbers are only going back to 1989, the ones weve been quoting. We havent had, again, a democrat follow another democrat after eight years since early in the last century. I think, john, the real key here is whether there is tried power or not. Not who takes the white house, but whether theres a clear sweep or not, and if there isnt, then i think a lot of those political numbers as far as the impact on the market are not going to be near as strong, and, in fact, i think you make a mistake by trying to focus in on those. I think largely if theres split power, adam smith, is going to manage, make most of the decisions going forward, and i think thats what people should stay focused on, and right now, i think theres a growing evidence that theres not only a pickup in earnings momentum and growth momentum in the United States, but theres evidence of growing and broadening economic momentum picking up around the globe, and i would say that that should focus investors in on the more economically sensitive cyclical areas, maybe even higher beta areas that have trailed over the last couple years when everyone went to the defensive sort of Interest Rate plays. I would be more focused there than i would on who takes the white house. But jim, the market can refocus on those things once the election is behind us, and it needs to be a certain outcome. What is the Market Pricing in for a certainty vote tomorrow night . Is it a difference of 25 electoral votes . At what point do you think the market will say this is clear there is a winner and this will not follow us through december . Well, i think that, you know, if we get in a situation where its the disputed election, thats really bad and that will certainly drag on, create a lot of uncertainty, raise the vix, but if we have a clear winner tomorrow night, whoever takes it, i think the market might have a kneejerk reactikction initially if trump wins it will sell off a bit, but within a few weeks the market will get beyond that, refocus on some of the fundamental aspects that have been Getting Better as weve been worried about this election, and i think were going to head northward, break out to the upside here over the next year. Guys, this morning david tepper joined the guys on squawk box this morning talking about the election and markets ability to discount either clinton or trump policies. Take a listen to this. This is a guy that has to remind himself on the podium to stay on message. In fact, he talks to himself, stay on message, donald, stay on message. Is he going to get in the oval office and say, dont press a button, donald, dont press that red button . Could be dangerous. Talks to himself to stay on message. It makes people nervous, larry, and thats economics. Jim, does that make sense to you, this idea, this notion that trump delivers a broader spectrum of outcomes that the market is afraid of . I think so. I think thats been pretty clear leading up to this, carl, that anything that leans trumpward we get Downside Risks in the markets, but the question is, does it persist or is it just immediately leading up to and immediately after the election, and i kind of lean that way. I think we move on whoever wins the white house, and investors should focus on, you know, weve escalated fears, weve brought down prices, weve refreshed evaluations a bit. Earnings are coming up, growth is starting to restable. I like that combo package of fear with better fundamentals, and i think id focus on that more than who wins the white house. Anthony, does really the house and Senate Matter more than the presidency does at this point . I mean, the way the numbers are trending, it looks like the republicans are going to hold on to the house and the senates not looking bad for the republicans either, but theres a bit more perhaps impact on the budget, on allocation, depending on what happens in congress. Thats right, and i think that right now when you look at the breakdown of what the votes are suggesting is that the house and the senate will stay, and by the way, the Financial Markets actually want that, but i want to step away and not just look at sectors and say that in the first year of a president ial election cycle out of an eightyear cycle, its a good year for the market and here im not going back to 1989. I go back to 1929 and the market gives you a rate of return of 8. 9 . The only other years when you get bs better performances, third year of the cycle or sixth year of the cycle, so youre getting really good numbers in the first year of a president ial cycle. For those that say, but wait, every time you get a president ial election youre more than likely to have a recession, in the last six president ial elections youve only had a recession shortly after just twice, so in a world where earnings are actually bottoming out and likely to start spiking higher and you dont get that many recessions after president ial elections, i think were looking at a pretty good 2017 if after this election is over. Thats a nice note to end on, put a smile on our faces. Jim paulson from wells and anthony chan from chase, thanks for joining us. When we come back, less than a day to go, not just tepper weighing in on the campaign, clinton versus trump, elon musk using choice words. Then its become one of the biggest and most influential demographics in the last ten years, how millennials plan to rock the vote tomorrow. The cofounders of the skimm will discuss that. Dow is up 306, just five points away from recovering all 311 points its lost over seven straight down days. Why are you deleting these photos . Because my teeth are yellow. Why dont you use a whitening toothpaste . Im afraid its bad for my teeth. Try crest 3d white. Crest 3d White Diamond strong toothpaste and rinse. Gently whiten. And fortify weak spots. Use together for 2 times stronger enamel. Crest 3d white. About tempurpedic mattresses. Is that they contour to your body. It keeps us comfortable and asleep at night. Shop our biggest event of the year, including all tempurpedic mattresses. Save up to 600, now thru november 29th. Get your tempurpedic. The most highly recommended bed in america. Ive spent my life planting a sizesix, nonslip shoe into that door. 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What do you think we should start thinking about once its over, once this race is over . Well, you know, we just have to think about the future. We havent heard much about the future in these debates. Weve heard about an economic with high tariffs, bring manufacturing back, i assume they are meaning the old style manufacturing. We havent talked about technology, innovation, the drivers of the Economy Today have been completely lost. In addition to that, we heard a lot of anticapitalism or an anti Free Enterprise speech. I dont understand that, were not talking about this. Roger, it seems like we have plenty of discussions amongst ourselves about a. I. And automation and Autonomous Cars and Just Innovation in general. That gets so lost when it comes to public policy. Well, i think there are a bunch of factors driving that. Technologys played a huge role in this election cycle, because the internet has changed the nature of how campaigns are run so fundamentally. To me i think the thing investors really need to Pay Attention to is less about what candidates say than what this process implies for the future of, you know, in terms of uncertainty. I think investors have gotten used to the notion the United States has stable institutions and that we can count on the banking system, we can count on the government in general to stay predictable within certain ranges, and i think that this particular campaign has blown all of that up. I think there were issues already under obama because the republican obstruction of his legislative agenda, but i think now youre in open warfare, and i think thats really bad for the investment markets in general. I think it raises capital costs everywhere, and, again, i dont know how real the problem is, but i think people have to start to look at instability in our basic institutions in a way that literally we havent had to look at in my lifetime, and i find that really scary. Really, the notion that we might have four more years like the last eight of continuous obstruction and, you know, something awful mieg happen, we might not be able to respond because we cant get the two sides to talk to each other, that part really scares me, and i dont think it matter what is we do in Silicon Valley at this point, we have to fix those institutions or were in big trouble. Eric, the eyes of the world are on the u. S. This week to see how this election plays out. Deutsche bank says european equities could fall 5 to 10 if theres a trump victory. They are preparing for a brexitlike market slide if trump were to win, but its so hard to predict how a president elect would act, based on what weve seen in the campaign trail. How do you predict what theyll do . Well, thats right. I think the markets are saying with Hillary Clinton we know pretty much its going to be same old, same old, were accustomed to that, therefore, lets bid the market up, because theres not going to be major disrupti disruption. With trump, we dont know. We dont know. On the other hand, there are institutions that will prevent him from doing extreme things, we believe, particularly congress, but theres a lot of unknown if trump wins. Eric, Grover Norquist was on last hour arguing Hillary Clinton presidency of hers, she would regulate startups like uber to death, shed be terrible for the gig economy because she wants employeelevel protections for contractors. You deal with a Broad Spectrum of companies that rely on unique and nimble Business Models to survive. Are you concerned about that . Of course, i am. Im concerned about the attack in general against private enterprise, and capitalism. I mean, there was a survey done earlier this year that shows 51 of millennials are not capitalists. And so were raising a whole generation of people who believe capitalism is a bad thing, so together with that comes more regulation, more government interference, and then its not good for innovation. Innovation needs to be free, play within the rules, but the rules need to be well known and they need to stay there for the long term. Roger, when you say we need to start pricing in basic institutional instability, give me an example of how that will affect your investment model, your investment thesis, the things you choose to spend your money on. Well, carl, one of the things that really troubles me about the Current Situation is exactly the point your other guest just made, which is that too many people in the country do not trust our institutions, do not trust our basic economic system, and loss of trust, loss of empathy, are everywhere in the economy right now. It makes me just generally more cautious. I believe that Silicon Valley and our economy can still produce a lot of greatness, but what i worry about is that the benefits of that have been so unevenly distrib