Class CNBC Interview 11/7/22
November 7, 2022Class CNBC Interview 22/8/22
November 8, 2022By Shubham Batra and Amruta Khandekar
FILE PHOTO: A Wall Street sign is pictured outside the New York Stock Exchange, in New York City© Thomson Reuters
(Reuters) – U.S. stock indexes were set to open higher on Monday following a rollercoaster week, with investor focus shifting to Tuesday’s midterm elections that will determine control of Congress.
Republicans have picked up momentum in polls and analysts see a split government, with the GOP winning the House of Representatives and possibly the Senate, as the likely outcome possibly hindering Democratic President Joe Biden’s agenda.
Traders work on the floor of the NYSE in New York© Thomson Reuters
“A gridlock is usually positive for the market … spending doesn’t go up and the market seems to enjoy that,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
U.S. consumer prices data for October, due to be released on Thursday, will also be scrutinized as investors try to gauge whether the U.S. Federal Reserve’s rapid interest rate hikes are helping cool down the economy.
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Wall Street’s major indexes recorded gains on Friday ending a volatile week that saw a mixed jobs report and comments from Fed officials on the pace of rate hikes.
Traders are now betting on 67% odds of a 50-basis point rate hike at the U.S. central bank’s meeting in December.
All the three indexes are in bear market territory, from their previous record closing highs. The S&P 500 index has lost nearly 20.9% year-to-date on worries that aggressive monetary policy tightening could tip the economy into a recession.
At 8:34 a.m. ET, Dow e-minis were up 72 points, or 0.22%, S&P 500 e-minis were up 7.75 points, or 0.21%, and Nasdaq 100 e-minis were up 25.25 points, or 0.23%.
The CBOE Volatility index, also known as Wall Street’s fear gauge, rose to 25.38 points a day after closing at its lowest since Sept. 13.
Apple Inc fell 1% in premarket trading after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated.
Meta Platforms Inc jumped 3.2% following a report that the Facebook parent was planning to begin large-scale layoffs this week that will affect thousands of employees.
U.S.-listed shares of Chinese firms JD.Com Inc, Alibaba Group Holding Ltd and Baidu Inc rose between 1.7% and 2.9%, despite Beijing’s reaffirmation of its strict COVID-19 policies over the weekend.
Digital World Acquisition Corp surged 26.9% as former U.S. President Donald Trump hinted at another White House bid. The blank check firm has agreed to take social-media startup Trump Media & Technology Group Corp public.
(Reporting by Shubham Batra and Amruta Khandekar in Bengaluru; Additional reporting by Shreyashi Sanyal and Devik Jain; Editing by Shounak Dasgupta)
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