5 things to know before the stock market opens on Monday, November 14th

Traders work on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, USA, November 11, 2022.

Andrea Kelly | Reuters

Here is the most important news that investors need to start their trading day:

1. A little autumn sunshine

Equities are coming out of a strong week, thanks in large part to a cooler-than-expected inflation reading that sparked hopes of lighter rate hikes from the Federal Reserve. The S&P 500 had its best week since June, while the Nasdaq had its best frame since March. Even with the Democrats holding the Senate (more on that later) there is still strong potential for the GOP to win the House and inaugurate a blockade in Washington, which would likely limit new regulations and tax increases. However, Fed officials warn that it may take some time for the central bank to reduce inflation. “Stop paying attention to the pace and start paying attention to where the endpoint will be. Until we have a drop in inflation, that endpoint is still a way out,” Fed Governor Christopher said Sunday. Waller. Read real-time market updates here.

2. Democrats hold the Senate

US Senate Democratic leader Chuck Schumer (D-NY) speaks at a midterm election night party for New York Governor Kathy Hochul in New York, New York, November 8, 2022.

Brendan McDermid | Reuters

The US Senate will remain in the hands of the Democrats after their incumbents in Arizona and Nevada – Mark Kelly and Catherine Cortez Masto, respectively – were expected to win their bids over the weekend. Those wins once again give Democrats 50 votes in the House, enough for a majority, with Vice President Kamala Harris serving as a playoff. The party could increase its influence a little more with a December runoff victory between Georgia Senator Raphael Warnock and his Republican challenger, Herschel Walker. That would take some of the power away from centrist Senator Kyrsten Sinema, D-Ariz., And West Virginia Conservative Democratic Senator Joe Manchin, but they would remain key on tight votes. Even if the House overturns the Republican, democratic control of the Senate will make it easier for Biden to appoint judges and new cabinet members.

3. The collapse of the FTX

Sam Bankman-Fried, founder and CEO of FTX Cryptocurrency Derivatives Exchange, speaks during a hearing of the Senate Committee on Agriculture, Nutrition and Forestry in Washington, DC on Wednesday, February 9, 2022.

Sarah Silbiger / | Bloomberg | Getty Images

There has been a flurry of revelations and developments since the cryptocurrency firm of fallen investor Sam Bankman-Fried FTX filed for bankruptcy on Friday. The company, now under the control of new CEO and restructuring chief John Ray, cracked down on negotiations and withdrawals after a series of “unauthorized transactions” took place immediately after filing for bankruptcy. Meanwhile, a new CNBC report claims that Alameda, a trading company founded by Bankman-Fried, has been quietly using billions of dollars in FTX client funds in a way that has escaped the attention of investors, employees and auditors. . Bankman-Fried, which had donated millions to democratic political causes, was also targeted by Washington, signaling a major shift for the cryptocurrency industry. His fall required more thorough scrutiny from both the left and right.

4. Big retailers report this week

Signage in a Walmart store in Secaucus, New Jersey.

Luca Jackson | Reuters

It’s retailers’ turn in the earnings spotlight and it couldn’t be a more pivotal time for the industry. The Christmas shopping season has practically begun, even though Black Friday is just under two weeks away. This week, investors will have a clearer picture of how well retailers are attracting customers, as well as whether companies are successful in tackling stacks of unwanted stocks at steep declines. writes Melissa Repko of CNBC. Here’s a reseller earnings report schedule this week:

5. Biden meets Xi

United States 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 his Chinese counterpart, Xi Jinping, face-to-face on Monday for the first time since he moved to the White House in January 2021. As the two presidents spoke through multiple video conferences and calls, the in- person he meets before the G-20 summit comes at a particularly tense time, amid concerns about Taiwan and the Russian invasion of Ukraine, among other things. “We need to find the right direction for the future of bilateral relations and elevate relations,” Xi said, while Biden stressed that the two countries can compete without it turning into a conflict.

In case you missed it …

Bob Chapek, CEO of Disney at the Boston College Chief Executives Club, November 15, 2021.

Carlo Krupa | AP

“Black Panther: Wakanda Forever” may have had a huge opening weekend, but cost cuts are coming Disney. In a note obtained by CNBC on Friday, CEO Bob Chapek told his division leaders that Disney, which is coming out of a rough earnings report, will seek to cut spending across the company. This means a targeted freeze on hiring, travel limits and possible staff cuts, writes Chapek in the note, which you can read here.

– Yun Li, Kevin Breuninger, Jacob Pramuk, Kate Rooney, MacKenzie Sigalos, Paige Tortorelli, Brian Schwartz, Melissa Repko, Evelyn Cheng and Alex Sherman of CNBC contributed to this report.

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