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

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Traders work on the floor of the New York Stock Exchange (NYSE) in Manhattan, New York, U.S., November 11, 2022.

andrew kelly | Reuters

Here are the most important information investors need to start their trading day:

1. A bit of autumn sunshine

Stocks are coming off a strong week, largely thanks to a colder-than-expected reading of inflation that has raised hopes of milder rate hikes from the Federal Reserve. The S&P 500 had its best week since June, while the Nasdaq had its best setting since March. Even with Democrats holding the Senate (more on that below), there’s still strong potential for the GOP to win the House and usher in the stalemate in Washington, which would likely limit new regulations and tax increases. taxes. Still, Fed officials warn that it may take some time for the central bank to get inflation under control. “Stop paying attention to the pace and start paying attention to where the end point will be. Until we bring inflation down, that end point is still a long way off,” the Fed governor said on Sunday. , Christopher Waller. Read live market updates here.

2. Democrats hold the Senate

U.S. Senate Democratic Leader Chuck Schumer (D-NY) speaks during a U.S. midterm election night for New York Governor Kathy Hochul in New York, New York, U.S. November 8, 2022 .

Brendan McDermid | Reuters

The US Senate will remain in the hands of Democrats after their incumbents in Arizona and Nevada – Mark Kelly and Catherine Cortez Masto, respectively – were expected to win their races this weekend. Those victories once again give Democrats 50 votes in the chamber, enough for a majority, with Vice President Kamala Harris serving as the tiebreaker. The party could strengthen its influence a little more with a victory in the December run-off between Georgian Senator Raphael Warnock and his Republican opponent, Herschel Walker. That would take away some power from centrist Sen. Kyrsten Sinema, D-Arizona, and conservative Democratic Sen. from West Virginia Joe Manchin, but they would still be essential in close votes. Even if the House becomes Republican, Democratic control of the Senate will make it easier for Biden to appoint judges and new cabinet members.

3. FTX Collapse

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

Sarah Silbiger | Bloomberg | Getty Images

There has been a whirlwind of revelations and developments since fallen investor Sam Bankman-Fried’s crypto firm FTX filed for bankruptcy on Friday. The company, now under new CEO and chief restructuring officer John Ray, has cracked down on trading and withdrawals after a series of “unauthorized transactions” took place shortly after it was declared bankrupt. Meanwhile, a new CNBC report says Alameda, a trading company founded by Bankman-Fried, quietly used billions of dollars in FTX client funds in a way that escaped the notice of investors, employees and listeners. Bankman-Fried, who had donated millions to Democratic political causes, also came under fire from Washington, signaling a major shift for the crypto industry. His downfall has prompted calls for greater scrutiny from both right and left.

4. Major retailers are reporting this week

Signage at a Walmart store in Secaucus, New Jersey.

lucas jackson | Reuters

It’s retailers’ turn to be in the spotlight, and this couldn’t be a more pivotal time for the industry. The holiday shopping season is almost upon us, even though Black Friday is just under two weeks away. This week, investors will get a clearer picture of how retailers are attracting customers, as well as whether companies are successfully sifting through piles of junk inventory at deep markdowns. writes CNBC’s Melissa Repko. Here’s a schedule of retailer earnings reports this week:

5. Biden meets Xi

US President Joe Biden (right) and Chinese President Xi Jinping (left) shake hands as they meet on the sidelines of the G20 summit in Nusa Dua on the Indonesian resort island of Bali on November 14, 2022 .

Saul Loeb | AFP | Getty Images

President Joe Biden met face-to-face with his Chinese counterpart, Xi Jinping, on Monday for the first time since he moved into the White House in January 2021. As the two presidents spoke through multiple video conferences and appeals, the in-person meeting ahead of the G-20 summit comes at a particularly tense time, between concerns over Taiwan and the Russian invasion of Ukraine, among others. “We need to find the right direction for the bilateral relationship going forward and elevate the relationship,” Xi said, while Biden stressed the two countries can compete without it turning into a conflict.

In case you missed it…

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

Charles Krupa | PA

‘Black Panther: Wakanda Forever’ May Have Had A Huge Opening Weekend, But Cost Cuts Are Coming disney. In a memo obtained by CNBC on Friday, CEO Bob Chapek told his division chiefs that Disney, which just released a rough earnings report, would seek to cut spending across the company. That means a targeted hiring freeze, limits on travel and possible staff reductions, Chapek wrote in the memo, which you can read here.

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

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