How Trump’s latest potential hires could send the stock market ‘through the roof’

Mike Pence dusted himself off from his “Hamilton” outing long enough to confirm on Sunday that Mitt Romney is a top candidate to serve as Donald Trump’s secretary of state. If Jim Cramer has it right, handing that title over to Mr. 47% could give the stock market a nice pop.

Why? Because it just might mean Trump is more savvy about foreign policy than some/many people might think.

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For traders looking to scalp profits by timing Trump appointments—good luck with that—CNBC’s human bullhorn shared this tip: “A name-brand, Wall Street-friendly Treasury secretary, on top of tabbing Romney for state, would send this market through the roof…that is, if there even is a roof.”

As it stands now, Trump is likely to choose between investment banker Steven Mnuchin and Texas Rep. Jeb Hensarling for the Treasury—though he apparently still has a thing for the idea of Jamie Dimon.

Check out: Jamie Dimon was never under consideration for Treasury job, report says

Meanwhile, “fake” has definitely emerged as a buzzword in recent days. “Fake news” on Facebook FB, +3.97%  supposedly helped seal Hillary Clinton’s fate in the election, and the “fake economy,” at least according to our call of the day, could do the same for the stock market (see more below).

But if the inevitable reckoning is in the offing, you wouldn’t know it from the mostly upbeat pre-Thanksgiving holiday mood that seems to be settling over markets.

Key market gauges

The Dow DJIA, +0.38%  and S&P SPX, +0.62%  touched fresh records. Crude CLZ6, +3.92%  is taking off after Russian President Vladimir Putin made upbeat comments about a production deal. Gold GCZ6, +0.21% is up too, and the dollar DXY, -0.27%  is lower, for a change. The Nikkei NIK, +0.77%  rallied nicely, but otherwise there were no big moves in Asian markets ADOW, +0.45% . Europe SXXP, +0.25%  logged some moderate gains.

Last week, blue chips managed to eke out some minimal advances, while the Nasdaq Composite Index COMP, +0.78%  knocked out a solid 1.6% rally. Techs still have a way to go considering the stock market’s post-Election Day advance has pulled the Dow up 2.9% in total, compared with a 2.5% rise for the Nasdaq. Read:Market Snapshot.

The call

Forget “fake news,” it’s the “fake economy” investors should be worried about, says Graham Summers, chief market strategist at Phoenix Capital Research.

“President Obama at one point claimed that those who questioned the strength of the recovery were ‘peddling fiction,’” he wrote. “It’s an interesting claim given the entire recovery, at least post 2010, has been built on fake economic data to perpetuate a fake narrative of growth.”

From there, Summers went on to cast doubt on employment, GDP and government spending figures, to come up with this question: “So what happens to the fake stock market when it finally adjusts the economic realities?”