US midterm elections, Disney earnings, FTX-Binance spit – what’s moving the markets


By Geoffrey Smith — The US is holding midterm elections, with the Republican Party tipped by polls to regain control of the House of Representatives. The lockdown around the world’s largest iPhone factory will be extended after the Chinese city of Zhengzhou reports a jump in COVID-19 cases. walt Disney leads a veritable deluge of earnings reports, while Lyft and Take-Two Interactive are set to open sharply lower after disappointing their reports late Monday. Crypto Exchange FTX’s Home Token Crumbles Another 20%, Pull Bitcoin and Ether will stop, and the US government will publish its latest short-term energy outlook. Here’s what you need to know in the financial markets on Tuesday, November 8.

1. Midterm elections determine the fate of Biden’s presidency, could lead to Trump’s run in 2024

The US is holding midterm elections that could send the rest of Joe Biden’s presidency to lame-duck status as voters punish Democrats for the presidency’s highest in 40 years.

Polls give the Republican Party a good chance of regaining control of the House of Representatives. Senate control — split 50-50 since the 2020 election — could also fall back to the GOP, and various state governorships are also up for debate.

The biggest subplot surrounding the polls will be whether the GOP candidates most closely associated with former President Donald Trump are performing above or below the norm. Trump again alluded heavily to announcing a 2024 presidential run on Monday, and the success of his followers may be the catalyst for such a move.

Republican control of Congress would significantly limit the government’s ability to take more radical fiscal measures through 2024. Internationally, the biggest impact could be a reduction in US military and economic support to Ukraine, an issue that some Trumpist GOP candidates in particular have been actively campaigning for.

2. Zhengzhou lockdown continues

The city of Zhengzhou said the number of COVID cases more than doubled on Monday, hoping for an early end to the lockdown affecting the world’s largest iPhone assembly plant.

The Airport Economy Zone’s seven-day lockdown ends Wednesday, but will now almost certainly be extended, further disrupting shipments of Apple’s flagship product in the key quarter of the year.

Shares of Apple (NASDAQ:), which have lost more than 10% since the start of the outbreak, rose 0.2% in premarket. Separately, the owner of the Zhengzhou plant, Foxconn, said it will invest $170 million in US electric truck manufacturer Lordstown Motors (NASDAQ:).

3. Stocks set to open flat; Take-Two, Lyft under pressure; Disney revenue leads a cast of thousands

US stock markets are expected to open broadly flat as the post-payroll rally takes a breather since Friday ahead of the midterm election results.

At 06:05 ET (11:05 GMT), they were up 30 points, or 0.1%, while also rising 0.1% and rising 0.3%, aided by consolidation in chipmaking stocks and Big Tech names that members after their third quarter reports.

Stocks likely to enter the picture later on include Take-Two Interactive (NASDAQ:), after the publisher of Grand Theft Auto lowered its current quarter revenue forecast late Monday, and Lyft (NASDAQ:), which is in premarket with 20% slumped after reporting figures confirming the loss of market share to Uber (NYSE:) in the last quarter.

Walt Disney (NYSE:) heads a profit list that stretches to the brink of ruin. It will report after the shutdown, along with Occidental Petroleum (NYSE:), NortonLifeLock (NASDAQ:) and News Corp (NASDAQ:). Early updates are planned for DuPont de Nemours (NYSE:), Norwegian Cruise Line (NYSE:), Coty (NYSE:), Workhorse (NASDAQ:), and GlobalFoundries (NASDAQ:), as well as mortgage institutions Freddie Mac (OTC:) and Fannie Mae.

4. Binance FTX bust-up keeps the pressure on crypto

Pressure on crypto exchange FTX mounted as heavy selling pushed its native token down by as much as 30% overnight. and were also dragged down by more than 5%.

Blockchain analyzes indicate that large-scale redemptions of funds from FTX continue, sparked by rival Binance’s decision over the weekend to liquidate its holdings of FTT amid concerns about FTT’s underlying solidity.

More and more commentators are casting the developments as an expression of deeper division between the owners of the two exchanges over the future regulation of crypto, especially in the US, where FTX’s Sam Bankman-Fried has lobbied for draft legislation to draw a stricter line. draw on decentralized finance than many crypto enthusiasts would like.

Binance founder Changpeng Zhao has downplayed this version of events, saying the move is just a risk management strategy. However, Bankman-Fried tweeted Monday that “a competitor with false rumors is after us”.

5. Oil takes a breather; API, STEO ready

Crude oil prices corrected downward after days of healthy gains as developments in China dent hopes for a quick end to the Zero-COVID policy.

At 6:25 AM ET, futures fell 1.3% to $90.64 a barrel, while futures fell 1.0% to $96.98 a barrel.

The American Petroleum Institute publishes as usual at 4:30 PM ET, while the US government publishes its last one at 12:00 ET.

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