Andrew Kelly | Reuters Here are the most important news investors need to start their trading day:
1. A little autumn sunshine
Stocks are coming off a strong week, thanks in large part to a cooler-than-expected inflation reading that raised hopes for lighter rate hikes from the U.S. Federal Reserve. The S&P 500 had its best week since June, while the Nasdaq had its best frame since March. Even with Democrats holding the Senate (more on that below) there is still a strong possibility the GOP could win the House and lead to a gridlock in Washington that would likely limit new regulations and tax increases. But Fed officials warn it may take some time for the central bank to bring inflation under control. “Stop paying attention to the pace and start paying attention to where the endpoint is going to be. Until we get inflation down, that endpoint is still a ways off,” Fed Governor Christopher Waller said on Sunday. Read live market updates here.
2. Democrats hold the Senate
U.S. Senate Democratic Leader Chuck Schumer (D-NY) speaks at a U.S. midterm election night party for New York Governor Kathy Hochul in New York, New York, U.S., November 8, 2022. Brendan McDermid | Reuters The US Senate will remain in Democratic hands after their incumbents in Arizona and Nevada – Mark Kelly and Catherine Cortez Masto, respectively – were projected to win their races over the weekend. These victories once again give Democrats 50 votes in the House, good enough for a majority, with Vice President Kamala Harris acting as the tiebreaker. The party could boost its leverage a little more with a victory in the December runoff between Georgia Sen. Raphael Warnock and his Republican challenger, Herschel Walker. That would take some power away from centrist Sen. Kyrsten Sinema, D-Ariz., and conservative West Virginia Democratic Sen. Joe Manchin, but they will remain crucial in narrow votes. Even if the House flips to Republicans, Democratic control of the Senate will make it easier for Biden to appoint judges and new cabinet members.
3. The collapse of FTX
Sam Bankman-Fried, founder and CEO of FTX Cryptocurrency Derivatives Exchange, speaks during a Senate Agriculture, Food and Forestry Committee hearing in Washington, DC, on Wednesday, February 9, 2022. Sarah Silbiger/ | Bloomberg | Getty Images There has been a flurry of revelations and developments since divest investor Sam Bankman-Fried’s crypto firm FTX filed for bankruptcy on Friday. The company, now under the control of new chief executive and restructuring chief John Ray, has curtailed trading and withdrawals following a series of “unauthorised transactions” that took place shortly after the bankruptcy filing. Meanwhile, a new CNBC report says Alameda, a trading firm founded by Bankman-Fried, quietly siphoned off billions of dollars in client funds from FTX in a way that escaped the attention of investors, employees and auditors. Bankman-Fried, who had donated millions to Democratic political causes, also came under fire from Washington, marking a major shift for the crypto industry. His fall has prompted calls for stronger control from both the right and the left.
4. Major retailers report this week
Signage at a Walmart store in Secaucus, New Jersey. Lucas Jackson | Reuters It’s the turn of retailers to take center stage and it couldn’t be a more critical time for the industry. The holiday shopping season is well underway, even though Black Friday is just two weeks away. This week, investors will get a clearer picture of how well retailers are engaging customers, as well as whether companies are making some headway through plummeting piles of junk inventory. writes CNBC’s Melissa Repko. Here’s a schedule of retailer earnings reports this week:
5. Biden meets Xi
US President Joe Biden (R) and Chinese President Xi Jinping (L) shake hands as they meet on the sidelines of the G20 Summit in Nusa Dua on the Indonesian tourist island of Bali on November 14, 2022. Saul Loeb Afp | Getty Images President Joe Biden met face-to-face on Monday with his Chinese counterpart, Xi Jinping, for the first time since he moved into the White House in January 2021. While the two presidents spoke via multiple video conferences and calls, a face-to-face meeting ahead of G-20 summit comes at a particularly tense time, amid concerns over Taiwan and Russia’s invasion of Ukraine, among others. “We need to find the right direction for the bilateral relationship going forward and elevate the relationship,” Xi said, while Biden stressed that the two countries can compete without turning into conflict.
In case you missed it…
Bob Chapek, Disney CEO at Boston College Chief Executives Club, November 15, 2021. Charles Krupa | AP “Black Panther: Wakanda Forever” may have had a huge opening weekend, but cost-cutting is coming to Disney. In a memo obtained by CNBC on Friday, CEO Bob Chapek told his division leaders that Disney, which is coming off a rough earnings report, will seek to rein in spending across the company. That means a targeted hiring freeze, limits on travel and potential staff cuts, Chapek wrote in the memo, which can be read here. – CNBC’s Yun Li, Kevin Breuninger, Jacob Pramuk, Kate Rooney, MacKenzie Sigalos, Paige Tortorelli, Brian Schwartz, Melissa Repko, Evelyn Cheng and Alex Sherman contributed to this report. — Join the CNBC Investing Club now to follow Jim Cramer’s every stock move. Follow the broader market action like a pro on CNBC Pro.
