Business

US futures wobble as midterms return Mixed commentary: Markets over


(Bloomberg) – U.S. stock index futures swing between gains and losses as corporate performance shows signs of strain and midterm elections fail to deliver a Republican sweep. investors predicted.

Most read from Bloomberg

The December contract on the Nasdaq 100 and S&P 500 indexes was little changed, a day after US stocks capped three-day gains. News Corp. and Walt Disney Co., each fell at least 8% in pre-market New York trading after posting disappointing results. The crypto sell-off deepens, sending Bitcoin towards its biggest 4-day drop since June. Oil falls on sluggish demand outlook from China.

Stock and bond investors have been hoping for a Republican return to Congress, with the best outcome seen as the GOP’s control of both the House and Senate. But American voters have delivered a mixed verdict, with Republicans aiming for control of the House of Representatives by smaller-than-expected margins and the race for the Senate still open. That makes Thursday’s inflation report the next catalyst for markets.

Chris Beauchamp, chief market analyst at IG Group in London, wrote in a note: “The Republican goal is to control both chambers in a single thread. “A split House could mean that the partisan battles over spending and the debt ceiling aren’t quite as dramatic or severe, but this is unlikely to shed light on the single-minded policy outlook. conspicuous way. Instead, the focus will likely turn back to the Federal Reserve and the US economy.”

Republicans have made gains in their bid for control of Congress, but many of the most recent races remain unnamed. The final result may not be known for days or even weeks if the results are close to what the polls have suggested and if the losers challenge the results.

Optimism for the stock was helped by a history of strong performance following midterm results. Stocks tend to rally during times of government restrictions and polls show Republicans can make a profit, putting a check on Democrats’ policies.

News Corp. fell 9.3% in pre-market trading after it announced first-quarter adjusted earnings that fell short of analysts’ median estimates. Walt Disney lost 8% due to a comprehensive slide in quarterly results.

Of the 452 S&P 500 companies that have reported earnings so far this season, 110 have fallen short of analysts’ forecasts. Meanwhile, the gauge’s combined 12-month forward earnings estimates have fallen 2.7% since mid-September.

Treasuries fluctuated between gains and losses on Wednesday. The dollar halted its three-day plunge and posted a modest gain.

In Europe, the equity benchmark fell for the first time in four days, trailed by travel and auto stocks. Chinese developers rose by the most in eight months as regulators expanded financial support for the sector.

Cryptocurrencies fall further as Binance Holdings Ltd. The potential takeover of tough rival exchange FTX.com has highlighted how tensions in the digital asset industry are jostling some of its top players. Bitcoin traded 7.7% lower.

Thursday’s consumer price index data could be the next event risk for Fed policy rates and stem from a more-than-expected rise in core consumer prices to a 40-year high in October. Ripe. Even with prices starting to moderate, the CPI is still far above central bank safety.

“The market will remain fixed on inflation, will be high and sticky at least through the years,” said Luke Barrs, global head of equity portfolio management at Goldman Sachs Asset Management. next few quarters. .

This week’s main events:

  • EIA Oil Inventory Report, Wednesday

  • US Wholesale Inventory, MBA Mortgage Application, Wednesday

  • Fed officials John Williams, Tom Barkin to speak at events, Wednesday

  • US CPI, US Initial Jobless Claims, Thursday

  • Fed officials Lorie Logan, Esther George, Loretta Mester speak at events, Thursday

  • University of Michigan Consumer Sentiment, USA, Friday

Some key moves in the market:

Inventory

  • Futures on the S&P 500 were little changed at 6:21 a.m. New York time

  • Nasdaq 100 futures were little changed

  • Dow Jones Industrial Average futures fell 0.2%

  • Stoxx Europe 600 down 0.4%

  • The MSCI World Index was little changed

Currency

  • Bloomberg Dollar Spot Index was little changed

  • The euro fell 0.1% to $1.0060

  • British Pound fell 0.7% to $1.1466

  • The Japanese yen was little changed at 145.62 a dollar

Electronic money

  • Bitcoin drops 4.6% to $17,835.44

  • Ether drops 9% to $1,215.75

Bonds

  • Yields on 10-year Treasuries rose one basis point to 4.13%

  • German 10-year yield drops 4 basis points to 2.25%

  • UK 10-year yield little changed at 3.55%

Goods

  • West Texas Intermediate crude fell 0.5% to $88.48 per barrel

  • Gold futures fell 0.2% to $1,712.50 per ounce

–With support from Vildana Hajric, Muyao Shen and Tassia Sipahutar.

Most read from Bloomberg Businessweek

© 2022 Bloomberg LP

news7f

News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button