Chris Kanze is an entrepreneur in the financial sector. In the following article, Mr. Kanze discusses recent stock market news and developments effecting shareholders, the economy and crypto.
The stock market is ever shifting, and some significant changes occurred on November 9, 2022. Chris Kanze explains the latest updates on what happened in the stock market last week and what it could mean for investors in the weeks and months to come.
Midterm Elections Ripples through the Stock Market
Investors had been hoping for a precise result from the midterms, leading to a Democrat in the White House and a split Congress favoring Republicans. However, that seems unlikely as Georgia heads up for a
runoff, postponing the final decision for weeks says Chris Kanze.
Wall Street prefers this split Congress scenario as the belief and results show that stocks often fare better when there is a split government. For example, Chris Kanze says that LPL Financial claims that since 1950, any time voters have produced the power situation of a divided or Republican-controlled Congress and a Democratic president, the S&P 500 has outperformed on a 52-week basis.
The crypto sell-off adds to the pressure as Bitcoin tumbled by 8.55%. This uncertainty will likely continue in the short term, but long-term investors may see this as a buying opportunity. For now, though, Chris Kanze says that the market remains volatile and unpredictable.
Benchmark Results Showed:
The stock market fell Wednesday as investors started a busy week of economic data and earnings reports.
Dow Jones
Chris Kanze reports that the Dow Jones Industrial Average declined by 2% (or 645 points), down to 32,513 points. Only one Dow stock, Merck & Company Inc (MRK), finished Wednesday's trading session higher. The stock has a strong track record of beating earnings estimates since it hasn't disappointed in any of the previous four quarters and is still near its maximum 52-week all-time high.
Walt Disney Company (DIS) is down by 13.16% after missing analyst estimates of $84 billion in revenue in the 2022 fourth quarter. Chris Kanze says that its streaming services are at a $1.47 billion loss, although management believes it will hit targets by 2024.
S&P 500
The S&P 500 slipped by 2.08%, equating to a 21.355% year-to-date decrease to 3,828.11 points. Chris Kanze says that the leaders in this vast red sea are the cloud, cybersecurity, online platforms, and life science consumer sectors, including DR Horton, Bio-Rad Labs, Gen Digital, Akamai, and Meta Platforms.
Focusing on the online community front, Mark Zuckerberg proceeded with his layoff of
11,000 employees, yet Meta Platforms Inc. (META) climbed up by 5% but down by 70% this year.
On the other front, just more than a week after securing the $44 billion Twitter deal, Elon Musk sold $3.95 billion of value in Tesla stock. As a result, Tesla Inc (TSLA) closed at a 7.17% decrease to $177.59.
Nasdaq Composite
The Nasdaq fell by 2.48%, down to 10,353 points reports Chris Kanze. Wednesday's top losses include the healthcare, information technology, consumer discretionary, and materials sectors.
On the earnings front, the top 3 leaders this week are all in the healthcare sector. Among these leaders is Merrimack Pharmaceuticals Inc (MACK), which closed with a 212.75% increase after saying that, according to its French partner Ipsin, the medication trial NAPOLI 3 successfully met the goal for treatment in late-stage pancreatic cancer.
The following two contenders are Neurobo Pharmaceuticals Inc (NRBO), up by 29.60% after closing the closing of a $32.3 million underwritten public offering. In addition, outset Medical Inc (OM), the company behind Tablo, which lowers the price and difficulty of dialysis, is up by 29.20%.
Crypto
Chris Kanze reports that Bitcoin fell to $16,550. These are levels not seen since November 2020, just a few months after the pandemic began and Bitcoin rose to all-time highs approaching nearly $70,000. As crypto investors know, when Bitcoin goes down, other digital currencies are sure to follow.
One of the most significant factors contributing to this week's tumble is the failed Binance acquisition of Sam Bankman-Fried's FTX firm. After reviewing FTX, Changpeng Zhao, the CEO of Binance, decided to back out of the deal, citing issues "beyond [their] control or ability to help." This move further heightens concerns about the cryptocurrency sector's stability.
Final Take
With a red wave hitting the stock market, investors will continue to closely watch several economic reports this week, including readings on the gross domestic product, personal income and spending, health sectors, and manufacturing activity. But most importantly, investors will be looking at inflation data released in the coming weeks.
