Welcome to MarketBites! Here's all you need to know about yesterday's market news.
"It’s always too early to quit."
- Norman Vincent Peale
PORTFOLIO MANAGER COMMENTARY
Stocks rallied on Monday after finishing last week with losses due to the Fed signaling more rate hikes than expected. This week, investors are looking ahead to today’s midterm elections, a big corporate earnings week, and Thursday’s inflation data for October. Consumer prices are expected to have increased at an annual rate of 7.9%, down from 8.2% the month before.
The stock market is likely to get a boost if Republicans take the majority in the House of Representatives, a scenario that nonpartisan analysts are projecting. However, investors and strategists say any boost from the election will be outweighed by interest-rate expectations, corporate results, and economic data. “Market prices these days are a lot more governed by central bank expectations than by political expectations,” said Florian Ielpo, head of macro at Lombard Odier Investment Managers.
Meta Platforms shares jumped 6.5% after the WSJ reported that the Facebook parent was planning to begin large-scale layoffs this week. Apple shares gained 0.4%, after an initial 1% drop earlier in the day, after announcing iPhone production has been temporarily reduced because of Covid restrictions in China. Some of the companies releasing earnings this week include Walt Disney, Lyft, Occidental Petroleum, and Adidas.
CHART OF THE DAY
Gas prices are currently at a national average of $3.80, per AAA. That price is roughly the same as a month ago, but 38 cents more than a year ago. Heading into an election, disapproval ratings to tend have a strong correlation to how high gas prices are- this is a good sign for Republicans looking to take back control of both the House and the Senate.