5 things to know before the stock market opens on Wednesday

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, USA, November 7, 2022.

Brendan Mcdermid | Reuters

Here are the key news items investors need to start their trading day:

1. Markets and stalemate

US stock markets turned slightly ahead on Election Day as investors bet on a partisan stalemate in the next Congress. But on Wednesday morning, the balance of power had yet to be determined. Early results showed Democrats outperformed expectations (more on that below), with some key seats yet to be allocated. Many investors are excited about the power-sharing parties in Washington, seeing it as a way to control spending, especially as the economy is gripped by high inflation. And as long as inflation is high, the Federal Reserve has said it will continue to raise interest rates — a promise weighing on stocks. Read live market updates here.

2. State of the big races

Democratic candidate for U.S. Senate Lieutenant Governor John Fetterman makes remarks during a campaign freeze ahead of the 2022 U.S. midterm elections in Philadelphia, Pennsylvania, Nov. 7, 2022.

Hannah Bavaria | Reuters

Let’s start with the Senate. Democrat John Fetterman overthrew the GOP-controlled Pennsylvania U.S. Senate seat, defeating Mehmet Oz, the TV doctor backed by former President Donald Trump. sen. Marco Rubio, R-Fla., won his reelection bid handily, while Trump-backed JD Vance defeated Democratic challenger Rep. Tim Ryan in Ohio held off. There are still four major races undecided, either too close or too early to call: Arizona, Wisconsin, Nevada and Georgia (which could move to a second round next month). If the Democrats win two, they have the Senate. The battle for the House of Representatives is also fierce, though GOP leaders remain confident it will come into their power. Read the election updates here.

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Read more: Trump’s favorite candidates disappoint on Election Day and raise questions about 2024

3. Meta Fires Thousands

Mark Zuckerberg during Metaverse talk on TBEN

Source: TBEN

Mark Zuckerberg’s potential metaverse company, meta, said Wednesday it will lay off more than 11,000 employees, or about 13% of the workforce. The job losses come after a sobering earnings report from Meta last month, when it reported rising costs and falling ad revenue. Zuckerberg has plowed billions of dollars into his burgeoning online metaverse, which has suffered from declining user numbers and widespread ridicule over his cartoonish graphics. Shares of the company, which also includes social media apps Facebook and Instagram, have fallen more than 70% this year from Tuesday’s close. The market cap, once above $1 trillion, is now about $255 billion.

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4. Tragic Kingdom

Bob Chapek, Disney’s Chief Executive Officer, speaks at the Disney Legends Awards 2022 at Disney’s D23 Expo in Anaheim, Calif., September 9, 2022.

Mario Anzuoni | Reuters

Not great, Bob. DisneyTuesday’s earnings report disappointed in just about every way. Earnings fell short of Wall Street expectations by a wide margin. Sales were also disappointing, impacted by the weak performance of the company’s media and entertainment segment. Even the silver linings were offset by gray clouds. Disney+’s streaming subscriptions exceeded expectations, but high costs weighed on profits and the company expects growth to slow in the current quarter. According to CEO Bob Chapek, Disney’s parks and cruise segment posted record sales, but even that fell short of analysts’ forecasts.

Read more: Disney wants you to focus on sales and profits instead of subscribers – just not now

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5. Bitter Fights in Ukraine

A view of damage after shelling on November 5, 2022 in Donetsk, Ukraine.

Anadolu Agency | Anadolu Agency | Getty Images

After a series of successful counter-offensive to reclaim territory from the Russians, Ukrainian forces find themselves at a near stalemate on the front lines of the war. “The situation is difficult on the entire front. Fierce fighting continues in some areas, as before. And it is especially difficult in the Donetsk region, as before,” Ukrainian President Volodomyr Zelenskyy said on Tuesday evening. “The occupiers suffer extremely heavy losses, but their order to move to the administrative border of the Donetsk region has not changed. We are not giving up an inch of our land there.” Read live war updates here.

– TBEN’s Jesse Pound, Yun Li, Jonathan Vanian, Sarah Whitten and Holly Ellyatt contributed to this report, as well as the TBEN.com Politics Team.

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