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☆ Crypto's self-appointed savior just reached for a lifeline
▼ + stars: | 2022-11-08 | by ( Allison Morrow | ) edition.cnn.com time to read: +5 min

He’s an entrepreneur whose name often appears alongside descriptors like “wunderkind,” “savior,” white knight, “digital Warren Buffett,” etc. Then, in a truly unexpected twist, Binance said it had offered to buy FTX to resolve its liquidity crisis. The news prompted a brief recovery in digital assets but wasn’t enough to calm anxious investors. Other digital assets and equities tied to the industry, such as Coinbase, also fell. There’s a lot to figure out still, but we can expect digital assets to remain volatile until more details about the FTX-Binance deal are made public.

Nonpartisan forecasters and opinion polls suggested a strong chance of Republicans winning a House majority and a tight race for Senate control. Shares in healthcare, energy and defense sectors could see more volatility in the wake of the election. "A Republican victory is seen as removing either current regulations, like in the energy sector, or potential future regulations like in the pharmaceutical sector." The S&P 500 (.SPX) is up nearly 9% from its recent October lows, but has still posted steep losses this year on worries that aggressive monetary policy tightening would tip the U.S. economy into a recession. Among S&P 500 sectors, energy (.SPNY) and consumer discretionary (.SPLRCD) fell the most, down 1% and 0.5%, respectively.

☆ Wall Street is bracing for a potential game changer, but it's not the midterms
▼ + stars: | 2022-11-08 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN Business —Wall Street is waiting for the results of Tuesday’s midterm election like the rest of the world, but traders say this week’s inflation report may prove to be far more consequential to markets. Traders typically believe gridlock is good because it means one party can’t push through legislation that messes things up. Andrew Frankel, co-president of Stuart Frankel, agrees that a GOP victory is “baked in” and shouldn’t trigger a major market rally. If anything, Frankel said, it could be a sell-on-the-news event where markets retreat after getting confirmation of a GOP win. Multiple NYSE traders told CNN that the midterm election may be overshadowed by Thursday’s Consumer Price Index, an inflation gauge that has become arguably the most important economic metric of the month.

☆ These ETFs can help round out your midterm election investing playbook
▼ + stars: | 2022-11-08 | by ( Jesse Pound | ) www.cnbc.com time to read: +4 min

Even if the election results match expectations, stocks may still rally as some unknowns are removed. Broad sector ETFs from firms like iShares, State Street and Vanguard are one way to play these sectors, offering cheap broad exposure. For example, the Industrial Select Sector SPDR ETF (XLI) and Vanguard Communications Services ETF (VOX) both have an expense ratio of 0.10%. Under-the-radar elections Federal elections are not the only contests on Tuesday that could move stocks. The biggest marijuana ETFs — AdvisorShares Pure US Cannabis ETF (MSOS) and ETFMG Alternative Harvest ETF (MJ) — are each down more than 50% for the year.

☆ Morning Bid: Midterms vigil and new crypto wobble
▼ + stars: | 2022-11-08 | by ( ) www.reuters.com time to read: +4 min

A look at the day ahead in U.S. and global markets from Mike Dolan. Tuesday's U.S. mid-term elections held world markets in thrall and investors now assume policy gridlock will emerge as the winner. With a critical U.S. inflation reading due on Thursday, there was some attention on San Francisco Fed research showing credit across the economy is tighter than the Fed's policy rate suggests and financial conditions by September were more reflective of a 5.25% policy rate than the current 3.75%-4%. FTX token , the native token of crypto exchange FTX, plunged 20% amid a range of reports and speculation that dragged the whole crypto complex lower and saw drop 5%. FTX has come under pressure after the head of rival exchange Binance said on Sunday his firm would liquidate its holdings of the FTX token due to unspecified "recent revelations".

☆ Premarket stocks: What midterm elections could mean for the US economy
▼ + stars: | 2022-11-08 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN Business —Tuesday’s midterm elections come at a time of economic vulnerability for the United States. Americans are feeling the pain of rising interest rates and are facing a winter filled with geopolitical tension. If Republicans get the House, tax hikes are dead in the water,” said David Wagner, a portfolio manager with Aptus Capital Advisors. Biden’s stock market record is the second worst since Jimmy CarterThe stock market under President Biden started with a boom, but as we head into midterm elections, markets are going bust, reports my colleague Matt Egan. By contrast, Biden’s two immediate predecessors headed into their first midterm election with stock markets surging.

☆ Investors brace for government gridlock as Republicans seen gaining in U.S. midterms
▼ + stars: | 2022-11-08 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +3 min

Republicans are favored to win control of the House of Representatives and possibly the Senate, polls and betting markets show, though there are still hours left to vote. "I think the markets are rallying at the prospect of gridlock," said Jack Ablin, chief investment officer at Cresset Capital in Chicago. "Fiscal spending has created a challenge for central banks worldwide. The S&P 500 (.SPX), which finished up 0.6% on the day, has risen about 5% over the last month. Reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

☆ Stock futures mostly unchanged as election results start roll in
▼ + stars: | 2022-11-08 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +2 min

New York CNN Business —US stocks were mostly unchanged in after-hours trading as results from Tuesday’s midterm elections rolled in. If Republicans take at least one chamber of Congress, that will likely result in more gridlock, which the market usually loves. Investors are more than happy when politicians bicker but don’t actually enact any new laws that may hurt corporate profits. S&P 500 futures were down 0.1%, and the Nasdaq Composite was down 0.01%. Early results on election night can be very different from the final outcome once all the votes are tallied.

☆ Inflation and recession fears could spoil the usual post-midterms stock market rally
▼ + stars: | 2022-11-08 | by ( Bob Pisani | ) www.cnbc.com time to read: +1 min

Bulls are excited about getting the midterm elections behind us. Since 1950, all 18 midterm elections have been followed by an up year for stocks, according to LPL Financial. LPL also noted nearly identical returns after wins by both Democrats and Republicans, but not all gridlock gets treated equally. That has occurred on four occasions since 1948 and has produced a 41% two-year return in the S & P 500. "We believe this remains the most likely outcome for Election Day 2022," Harvey said.

☆ These stocks could benefit from a GOP victory in midterm elections, and analysts love them
▼ + stars: | 2022-11-08 | by ( Michelle Fox | ) www.cnbc.com time to read: +6 min

The stocks also have to have a potential upside of at least 20%, based on the average analyst price target, according to FactSet. Shares are up more than 36% year to date and have another 30% upside to the average analyst price target, according to FactSet. Google-parent Alphabet is down about 38% year to date but has nearly 45% upside to the average analyst price target. Match has lost more than 65% so far this year but has 50% upside to the average analyst price target, according to FactSet. The stock is down about 28% year to date, but has 27% upside to the average analyst price target.

Meta Platforms Inc (META.O) jumped over 6% following a report that the company was planning to begin large-scale layoffs this week. REUTERS/Brendan McDermid 1 2Unofficially, the S&P 500 climbed 0.96% to end the session at 3,806.90 points. S&P 500 by market capOf the 11 S&P 500 sector indexes, eight rose, led by communication services (.SPLRCL) which was up 1.83%, followed by a 1.73% gain in energy (.SPNY). Advancing issues outnumbered falling ones within the S&P 500 (.AD.SPX) by a 2.8-to-one ratio. The S&P 500 posted 18 new highs and 15 new lows; the Nasdaq recorded 93 new highs and 221 new lows.

[1/4] Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 7, 2022. Traders are now betting on 61% odds of a 50-basis point rate hike at the U.S. central bank's meeting in December. Meta Platforms Inc (META.O) climbed 5.4% following a report that the company was planning to begin large-scale layoffs this week. Advancing issues outnumbered decliners by a 1.14-to-1 ratio on the NYSE and by a 1.02-to-1 ratio on the Nasdaq. The S&P index recorded 15 new 52-week highs and 11 new lows, while the Nasdaq recorded 58 new highs and 145 new lows.

☆ U.S. yields advance as markets gird for midterm elections
▼ + stars: | 2022-11-07 | by ( Gertrude Chavez-Dreyfuss | ) www.reuters.com time to read: +3 min

NEW YORK, Nov 7 (Reuters) - U.S. Treasury yields rose in choppy trading on Monday after a week of high volatility, as bond investors turned their focus to the U.S. midterm elections on Tuesday that will determine control of Congress. U.S. two-year yields, which are sensitive to rate expectations, rose 7 basis points to 4.216% . The yield on 10-year Treasury notes was up 4.3 basis points at 4.201%. U.S. 30-year Treasury yields were up 4.2 basis points at 4.289%. A closely-watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes remained inverted at -52.1 basis points.

☆ Political Gridlock Would Bring Big Pharma a Sigh of Relief
▼ + stars: | 2022-11-07 | by ( David Wainer | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/political-gridlock-would-bring-big-pharma-a-sigh-of-relief-11667778468

[1/2] A Wall Street sign outside the New York Stock Exchange in New York City, New York, U.S., October 2, 2020. A split government could result in political gridlock that stymies major policy changes, an outcome that investors see as favorable for equities. Shares of Meta Platforms Inc (META.O) climbed 5.4% following a report that the company was planning to begin large-scale layoffs this week. Advancing issues outnumbered decliners for a 1.31-to-1 ratio on the NYSE and a 1.10-to-1 ratio on the Nasdaq. The S&P index recorded six new 52-week highs and two new lows, while the Nasdaq recorded 43 new highs and 95 new lows.

[1/2] A Wall Street sign outside the New York Stock Exchange in New York City, New York, U.S., October 2, 2020. REUTERS/Carlo AllegriSummarySummary Companies Meta Platforms rises on report of job cutsFutures up: Dow 0.22%, S&P 0.21%, Nasdaq 0.23%Nov 7 (Reuters) - U.S. stock indexes were set to open higher on Monday following a rollercoaster week, with investor focus shifting to Tuesday's midterm elections that will determine control of Congress. Traders are now betting on 67% odds of a 50-basis point rate hike at the U.S. central bank's meeting in December. ET, Dow e-minis were up 72 points, or 0.22%, S&P 500 e-minis were up 7.75 points, or 0.21%, and Nasdaq 100 e-minis were up 25.25 points, or 0.23%. The CBOE Volatility index (.VIX), also known as Wall Street's fear gauge, rose to 25.38 points a day after closing at its lowest since Sept. 13.

[1/2] A Wall Street sign outside the New York Stock Exchange in New York City, New York, U.S., October 2, 2020. "In general we have seen stocks perform better after a split government, I expect that to continue." Economists expect the annual consumer prices inflation to slow to 8.0% and the core numbers to dip to 6.5%. Both the midterm elections and inflation are likely to provide major cues for Wall Street after a volatile week dominated by mixed jobs report and hawkish comments from Fed Chair Jerome Powell. All the three major U.S. stock indexes are in bear market territory, from their previous record closing highs.

☆ How the U.S. midterms could ripple through the stock market
▼ + stars: | 2022-11-07 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

Regardless of the winner, past midterm elections have ushered in a period of positive market performance, something investors would welcome after a year in which the S&P 500 has declined by nearly 21%. The S&P 500 aerospace and defense index (.SPLRCAED) is up nearly 10% this year. HEALTHCAREPharmaceutical and biotech stocks may benefit in a Republican victory, after Democrats recently pushed through a law aimed at lowering prescription drug prices. The S&P 500 healthcare sector (.SPXHC) is down some 7% in 2022, while the S&P 500 pharmaceuticals index (.SPLRCCARG) is up about 1%. Therefore Republican victory in the House or Senate "probably means a legislative standstill, implying an incremental positive for the category," the said.

☆ David Victor discusses U.S.-UAE $100 billion clean energy deal
▼ + stars: | 2022-11-07 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailU.S.-UAE $100 billion clean energy deal is part of a 'new approach' to climate change: ProfessorDavid Victor of the University of California San Diego says such an approach relies less on global diplomacy, which "often ends in gridlock."

☆ Best midterm election scenarios for stocks and the sectors to play them, according to RBC
▼ + stars: | 2022-11-07 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

If the midterm elections go as Wall Street expects, stocks should rally into year-end, according to RBC. The average S & P 500 returns are higher in the years when a Democrat is president and the GOP controls Congress, her analysis showed. This year is most similar to 2002 — so far the S & P has had a 76% correlation with 2002, the strongest in any midterm election year in recent decades. Back then, the S & P rallied back 20% from its October lows, she said. Additionally, biotech in the health-care space and specialty/consumer finance and regional banks within financials should outperform, according to RBC.

☆ European shares gain ground on boost from travel stocks
▼ + stars: | 2022-11-07 | by ( Shreyashi Sanyal | ) www.reuters.com time to read: +3 min

REUTERS/StaffSummarySummary Companies Flutter, Ryanair lead travel stocks higherTravel & leisure index hits near 3-month highsChina-exposed luxury companies declineIrish stocks rallyNov 7 (Reuters) - European shares rose on Monday, reversing declines from the opening bell, as a jump in travel stocks helped outweigh a drag from China-exposed luxury giants. The benchmark STOXX 600 index (.STOXX) added 0.6% by 0929 GMT, extending gains after its fourth straight weekly rise. Flutter Entertainment Plc rose 4.5%, boosting European travel & leisure stocks (.SXTP) by 2.3% and helping it touch a near three-month high. European luxury stocks, including LVMH (LVMH.PA), Pernod Ricard (PERP.PA) and Hermes International (HRMS.PA), dipped between 0.1% and 0.4%. Dutch fertiliser maker OCI (OCI.AS) fell 3.7% to the bottom of the STOXX 600 after J.P. Morgan cut its rating on the stock on softer quarterly outlook.

☆ From Teslas to BMWs, cars are piling up on land and at sea in German port of Bremerhaven
▼ + stars: | 2022-11-07 | by ( Lori Ann Larocco | ) www.cnbc.com time to read: +4 min

Krisztian Bocsi | Bloomberg | Getty ImagesThe Port of Bremerhaven, the main roll on/roll off port in Germany and one of the largest automobile hubs in the world, is experiencing gridlock. He said car imports into Bremerhaven from the U.S. and Mexico are operating on a timeline of months. Bremerhaven is Europe's fourth-largest containership port, with annual capacity over 5 million TEU [twenty-foot equivalent unit] containers. Another UK strike nearsAt the Port of Liverpool in the U.K., a fourth strike is set for November 14-21 if no deal with port management is reached. Braun told CNBC that since these strikes are well organized there is time in advance to plan and circumvent the port, diverting trade elsewhere.

☆ Morning Bid: Polls and prices
▼ + stars: | 2022-11-07 | by ( ) www.reuters.com time to read: +4 min

A look at the day ahead in U.S. and global markets from Mike Dolan. Chinese stocks continued last week's tentative recovery, however, despite officials throwing cold water on any early end to draconian COVID lockdown policies. Some correction of the market's severe underperformance this year was about the only cogent reason given for the ongoing stock bounce. European Central Bank President Christine Lagarde and ECB board member Fabio Panetta both speak. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Stocks week ahead: How the midterms could affect Wall Street
▼ + stars: | 2022-11-06 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +8 min

Investors are more than happy when politicians bicker but don’t actually enact any new laws that may hurt corporate profits. If Republicans get the House, tax hikes are dead in the water,” said David Wagner, a portfolio manager with Aptus Capital Advisors. That’s because there are some areas of consensus for the White House and Republican lawmakers. Congress and the White House may spend more time bickering than trying to pass legislation. Ameriprise chief market strategist Anthony Saglimbene said on a conference call last week about the midterms that stocks have historically gone up after elections, no matter which party controls the White House and Congress.

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhat's driving early-voter turnout in AtlantaMany people are watching Atlanta in the lead-up to 2022's midterm elections. Races for key seats in the U.S. Congress alongside a rematch for the state governor's office have animated voters. In addition, serious concerns over such issues as inflation, voting rights, health care and abortion are drawing people to the polls in droves. If Republican candidates manage to flip seats in the U.S. Senate or House of Representatives, a new era of gridlock could unfold in Washington.

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