Stocks slid into the close yesterday, but they've been mixed this morning. Crude oil has also been vacillating after a big slide on Monday. Gold, silver, Treasuries, and the dollar are mostly flat.
It’s Midterm Election Day – and investors are eagerly awaiting results from around the country. Polls and prediction markets are pointing toward a Democratic takeover of the House of Representatives. The Senate looks to be much more of a tossup. Election returns will start pouring in after 6 pm Eastern.
It’s worth mentioning that markets tend to do well in post-midterm trading no matter WHO wins simply because election-fueled uncertainty gets eliminated. Between 1980 and 2024, the S&P 500 Index (^SPX) rose an average of 13.7% in the year following midterms. Investors enjoyed gains 91% of the time, according to CNBC. Expand the sample size to cover the top 1,000 US stocks and you get even-stronger results, per Morgan Stanley and Bloomberg.
Source: Bloomberg
Apple Inc. (AAPL) reported better-than-expected sales and margins in the most recent quarter. But the stock slid around 4% anyway after CEO John Ternus warned that services margins will slow moving forward. Rising memory chip costs are also pressuring profit. Apple’s market capitalization recently topped $5 trillion thanks to a 24.8% year-to-date rise through yesterday.
Finally, Walt Disney Co. (DIS) may eliminate thousands of jobs in the coming months as part of a plan to cut costs by 20%. Layoffs are likely at its theme park, movie studio, and television operations. The media and entertainment giant employs around 231,000 people. Disney stock is up 1.1% YTD.
