The stock market closes higher on the eve of the midterm elections; Facebook leads tech stocks higher

The stock market closes higher on the eve of the midterm elections;  Facebook leads tech stocks higher

The stock market closed higher on Monday, led by the Dow Jones Industrial Average, a day before the midterm elections. Facebook’s father Metaplatforms (GOAL) pushed tech stocks higher after news that it plans to lay off thousands of workers. Even Apple (AAPL) closed 0.4% higher despite an announcement over the weekend that it will reduce shipments of its iPhone 14.




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The Dow Jones Industrial Average closed 1.3% higher and the S&P 500 rose 1%. The Nasdaq Composite closed 0.9% higher. The small-cap Russell 2000 index rose 0.6%.

Volume fell on both the NYSE and Nasdaq from the same time on Friday, according to early data.

The benchmark 10-year Treasury yield rose 5 basis points to 4.21%.

Crude prices fell 0.8% to $91.90 a barrel.

Technology and energy stocks were the biggest gainers. The S&P Technology Select Sector ETF gained 1.8%, while the S&P Energy Select Sector ETF (XLE) closed with a rise of 1.7%. The S&P Utilities Sector ETF (XLU) was the worst performer of the 11 S&P sectors, down 1.9%. Utility NextEra Energy (SINGLE) closed 1.9% lower and Southern (SO) closed with a fall of 2.4%.

Midterms could see a change in control

Tuesday’s midterm elections could see a shift toward Republican control of one or both houses of Congress.

“Republicans are heavily favored to win the House, and the Senate is more or less a toss,” LPL Financial asset allocation strategist Barry Gilbert and chief equity strategist Jeffrey Buchbinder wrote in a memo to The investors. “We believe that any result would be favorable for the market.”

A change in either scenario would see Democrats gain full control of both chambers.

President Joe Biden’s approval rating remains underwater, find the November IBD/TIPP survey. Biden’s job approval rating rose two tenths of a point to 45.5 in the new IBD/TIPP poll. The presidential job approval figure indicates that 45.5% of adults who expressed an opinion approve of Biden’s job performance and 54.5% disapprove.

In the meantime, Takeover of the digital world (DWACShares of ) soared more than 66% on Monday as the special purpose acquisition company, which is seeking to take former President Donald Trump’s technology and social media platform public, appears to be getting a boost from news that Trump will announce another run for the White House this month. .

In economic news, the consumer price index for October is due out on Thursday at 8:30 am ET. The more closely watched inflation figure is forecast to rise 0.7%, up from 0.4% in September, for an annualized rate of 8%. Core CPI excluding food and energy is expected to rise 0.5%, slightly less than 0.6% in September. This would yield an annualized rate of 6.6%.

Factors that move the stock market: Facebook, Tesla, oil stocks

Facebook’s parent meta-platforms closed up 6.5% in plans to lay off thousands of workers in an attempt to cut costs. This would be the first downsizing in the company’s history. The stock is down more than 70% so far this year.

Among Dow Jones stocks, Microsoft (MSFT) rose 2.9%. Apple shares fell 0.9% after the tech firm said on Sunday that it “now expects lower iPhone 14 Pro and iPhone 14 Pro Max shipments than previously anticipated.”

Actions of Tesla (TSLA) fell 5% below the 200 level, a new 52-week low. Investors seem worried that CEO Elon Musk will be distracted by his recent takeover of Twitter and the negative PR he’s getting from his recent battles with high-profile users.

Actions of Walgreens Boots Alliance (WBA) jumped 4.1% after a unit of Walgreens reportedly neared a deal to merge with Summit Health, the parent company of CityMD’s urgent care centers, in a deal that could be struck as soon as Monday, according to The Wall Street Journal. The transaction would be worth approximately $9 billion, including debt, according to people familiar with the matter. health insurer Cigna (IQ) is expected to invest in the combined company.

vaccine manufacturer BioNTech (BNTX) doubled Wall Street’s third-quarter earnings expectations on Monday and raised its full-year outlook for Covid vaccine sales. BNTX shares rose 4.2%.

The Germany-based company reported earnings of €6.98 per share on €3.46 billion in sales. Based on today’s exchange rates, earnings were about $6.98 per share and sales were $3.46 billion. Both metrics easily exceeded expectations, according to FactSet.

Profit Boosters: Shift4, Ritchie, Palantir

Oil stocks rose after the US and its allies agreed last week that Russian oil sales will be subject to a price ceiling. Details of the price caps still need to be ironed out before the sanctions kick in on December 5.

Several oil companies are also scheduled to report earnings this week, including Western Petroleum (OXY) Y diamond back energy (CANINE). Diamondback shares gained 1.3% on Monday and are up on the right side of a base of cup and approaching its buy point of 162.34. Analysts are looking for a profit of $6.36 per share. Diamondback shares are gaining as more shale oil companies are reinvesting their profits in the Permian Basin.

shale oil company Comstock Resources (CRK) soared more than 10% on Monday. The stock is approaching a buy point of 21.95 from a consolidation basis.

coal miner peabody energy (BTUs) jumped more than 11% after announcing that it is no longer in talks to acquire the Australian miner Coronado Global Resources.

Shift4 Payments (FOUR) met earnings expectations and beat revenue estimates for its third quarter, and raised one metric on its full-year outlook. But shares of Shift4 fell more than 7% on Monday as ready to host an investor day. For the quarter ending September 30, Shift4 earnings increased 65% on an adjusted basis from the prior year to 43 cents. Net income increased 33% to $196.7 million.

Upcoming Earnings This Week

Ritchie Bros Auctioneers (RBA) plunged 17.6% after reporting better-than-expected third-quarter EPS but no revenue. The company also said it has agreed to acquire the digital vehicle market. IAA (IAA) in a stock and cash transaction valued at approximately $7.3 billion. IAA shares also fell, more than 1.2% on the news.

Medical Products Supplier Hemonetics (HAE) rose 3.5% after beating headline and final estimates for the second fiscal quarter.

Palantir (PLTR) returned 11.5% in high volume after surpassing third quarter sales estimates and shortfalls in earnings. The stock is trading near record lows.

The EII 50 Innovative ETF (FFTY) rose 1.1%, led by oil stocks and medical personnel company AMN Medical Care (AMN), which jumped more than 6%.

Corporate earnings are also due this week from lyft (LYFT), walt-disney (DIS) and casino operator Wynn Resorts (WYNN).

Follow Michael Molinski on Twitter @IMmolinski

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