Indecisive Midterms, Crypto Collapse, Disney Woe – What Moves the Markets?


By Geoffrey Smith — Ron DeSantis emerges as the biggest winner of the US midterm elections, but an expected stream of Republican victories has failed to materialize. walt Disney falls into premarket due to fears of greater startup losses for its streaming services and the inflationary impact on its theme parks. Bitcoin plunges to a two-year low as the near-collapse of FTX rattles the crypto universe, and the US produces reports on oil supplies and grain supply and demand in the world. Here’s what you need to know in the financial markets on Wednesday, November 9.

1. DeSantis sails as GOP heads for home win; Dems flip key Pennsylvania Senate seat

Florida Governor Ron DeSantis emerged as the big winner of the midterm elections, getting him re-elected in style as a number and putting him in the polls for the GOP’s 2024 presidential candidacy.

By contrast, a number of Republican candidates with the high-profile support of Donald Trump — including governor candidates Don Bolduc and Doug Mastriano — fared relatively weakly.

Democrat John Fetterman’s victory in a key race in Pennsylvania left the GOP’s hopes of regaining control of the Senate hanging by a thread, but gains elsewhere probably seemed big enough to lose control of the House of Representatives. getting back.

2. Disney hurt by streaming losses

Shares of Walt Disney (NYSE:) fell nearly 8% in premarket after the entertainment giant reported bigger-than-expected losses on its Disney+ streaming operation.

Management said the loss, which has more than doubled from a year earlier to $1.47 billion, is likely to decline from now on as the operation scales, although subscriber growth slowed after it lost the rights to the cricket league. of the Indian Premier League.

Worse-than-expected performance from the theme parks and traditional TV business resulted in operating income – at $1.6 billion – being 30% lower than consensus forecasts.

3. Shares will open slightly lower; Meta confirms huge layoffs

US stocks will open lower later, with Disney’s disappointment along with the prospect of two years of policy paralysis in Washington weighing on sentiment.

In contrast, there was support from Meta Platforms (NASDAQ:), who confirmed it will lay off about 11,000 employees – 13% of the total – as it draws a line under a period of throwing money at longshot investments in the so-called Metaverse.

By 6:30 AM ET, they were down 89 points, or 0.3%, while down 0.1% and were essentially unchanged. Meta-shares were up 3.8%.

The economic calendar includes weekly updates on and, while that of the Federal Reserve and both will speak.

Earnings season kicks into gear, with (NYSE:) (early) and Wynn Resorts (NASDAQ:) (late) as some of the highlights.

4. Bitcoin Hits Two-Year Low As Binance Deal Doesn’t Stop FTT Route

slumped to its lowest point in more than two years as the crypto space reeled from the latest confidence crisis triggered by FTX’s near collapse.

Binance, the world’s largest crypto platform, had agreed to buy FTX’s non-US operations on Tuesday after FTX was forced by a massive depositor to suspend customer withdrawals.

, FTX’s native token, crumpled anyway. It lost nearly 80% after a warning from Binance CEO Changpeng Zhao rammed home the message that the deal will only go through if his due diligence yields no nasty surprises.

5. Oil lower on weak Chinese data, US equity build-up

The price of crude oil fell to its lowest point in a week after Chinese inflation data surprised downward again, highlighting the economic weakness of the world’s largest oil importer. rose just 0.1%, while falling year-on-year for the first time in nearly two years.

At 6:40 AM ET, they were down 0.9% to $88.11, while falling 0.8% to $94.57 a barrel.

Sentiment was also hit by reports that a surprising 5.6 million barrels of crude had built up last week. The U.S. government will release its at 10:30 ET, while the Department of Agriculture will later release its of the world’s agricultural markets as well.

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