Midterm elections have begun in the United States, with voting results that will determine control of Democrats and Republicans in both the Senate and the House of Representatives. Major US equity indices rose Tuesday (8th) as investors hoped to prevent sweeping political reforms through political stalemate.
Before the deadline,Industrial average of the Dow Jonesover 150 points, or almost 0.5%,Nasdaq Composite Indexincreased by almost 0.1%,S&P 500 Indexincreased by almost 0.1%,Semiconductor of PhiladelphiaThe index rose more than 1.7%.
US stocks before the marketS&P 500 IndexAndNasdaq All 100 futures were up at least 0.2% after US stocks rose for two consecutive days on Monday. US two-year yields were slightly adjusted to 4.73%. The dollar rose after falling two days in a row.
Over the past two days, the bulls have returned to the stock market in anticipation of historically strong post-midterm elections. While polls show a possible Republican victory that would limit Democratic politics, investors are busy studying as many plays as possible. The best outcome for the bond market could be that Republicans control both the House and the Senate, and if the Democrats hold both houses, the dollar will find support.
However, Tuesday’s move on US Treasuries underscored the fragility of sentiment, with the Federal Reserve’s tightening of monetary policy remaining the biggest obstacle. The US inflation report for October, scheduled for Thursday (10), should provide new clues on the path of the Fed’s rate hike, even as money markets are increasing final rate bets.
Previously, the US core consumer price index (CPI) rose more-than-expected in September, reaching a new high in 40 years. Even though prices started to slow down, CPI was still well above the Fed’s target level. 2- Yard rate hike (50 bps).
On the other hand, signs of pressure on US corporate performance are increasingly evident: among the 441 companies that announced quarterly resultsS&P 500 IndexNearly a quarter of the constituent companies failed to meet their targets last quarter.
In terms of digital assets, the relationship between binance cryptocurrency or currency exchange and FTX has broken down,cryptocurrencyThe market is under pressure and FTT, the native token of the FTX exchange, once dropped 30% and dragged lowerbitcoin AndetherIt fell more than 5% to the two-week low. Binance’s announcement over the weekend that it would liquidate FTT on hand continued to put pressure on the latter’s market price.
In energy terms, crude oil prices stalled after rising for several days in a row. China’s anti-epidemic policy turned to expectations, which impacted market sentiment, and international oil prices both fell.
Starting at 10:00 PM on Tuesday (8th) Taipei time:
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Interactive Take-Two (TTWO-US) fell 13.88% to $ 93.35 per share at the start of the trade
Grand Theft Auto series publisher Take-Two Interactive lowered its forecasts for annual bookings, dragging its shares down more than 17% in pre-market trading. The company has been hit by weak sales on mobile and in-game, but CEO Strauss Zelnick said things are expected to improve in the next three to six months.
Lyft (LYFT-US) fell 17.61% to $ 11.65 per share at the start of the trade
Shares of racing-sharing company Lyft plunged more than 17% in pre-market trading after mixed third-quarter results disappointed investors who were expecting a surge. The company’s revenue increased 22% to $ 1.054 billion last quarter, slightly below Wall Street’s forecast of $ 1.056 billion, but earnings exceeded estimates and adjusted EBITDA of $ 66 million. it beat Wall Street expectations by $ 62 million.
Lordstown Motors (RIDE-US) rose 24.86% to $ 2.31 per share at the start of the trade
According to the Wall Street Journal (WSJ), Hon Hai (2317-TW) will spend $ 170 million to expand its capital injection in US electric car startup Lordstown Motors to become the latter’s largest shareholder, increasing the stock nearly 18% in pre-market trading. Separately, Lordstown reported last quarter earnings Tuesday with no record of revenue, with a net loss of $ 154.4 million, or 73 cents per share, including a non-cash accounting expense of nearly $ 75 million related to the sale. of the factory in Hon Hai.
The main economic data today:
- The October US NFIB Small Business Confidence Index reported 91.3, expected 91.5, the previous value of 92.1
Wall Street Analysis:
Richard Harris, chief executive of Port Shelter Investment Management, said that inflation is on the rise, but there may be a cyclical decline, although it hasn’t happened yet. The market’s view on inflation remains uncertain and, while hoping for the best, it should actually seek the worst.
JPMorgan analyst Marko Kolanovic warned that continued aggressive rate hikes by the Fed pose risks to equities. Morgan Stanley analyst Mike Wilson said that before companies are more optimistic about US equities, companies will need to make significant spending cuts, including layoffs.
UBS senior analyst Ipek Ozkardeskaya said the US debt burden could prevent Democrats from implementing many of the economic reforms they previously expected, and if Republicans win midterm elections, Democrats will have to say farewell to the reform plan. As a result, US debt growth under Republican leadership is likely to slow.
