Mid-Week Market Minute 11.09.22

Stocks Unchanged; CPI Report on Thursday

Stocks were relatively unchanged for the week as investors digested corporate earnings alongside midterm election results. In bonds, Treasury yields were modestly lower with the 2-year and 10-year Treasury notes trading around 4.69% and 4.16%, respectively mid-week. On the earnings front, shares of Disney traded sharply lower after posting disappointing third-quarter results.

The midterm elections failed to yield the Republican sweep many analysts were anticipating, as one of the key races to determine Senate control was in Pennsylvania, where Democrat John Fetterman defeated Republican Mehmet Oz. Critical Senate races in Georgia and Nevada still were unresolved as of Wednesday morning, and control of the Senate may come down to a potential runoff in Georgia on Dec. 6.

On the data front, Small Business Optimism declined in October for the first time since June amid a slower sales outlook and growing concerns over inflation. Looking ahead to the rest of the week, markets will keep a close eye on October’s CPI report due Thursday morning. Estimates are calling for headline inflation to have risen 7.9% on a year-over-year basis, compared to 8.2% in September. Core CPI, which excludes food and energy, is expected to come in at 6.5%, slightly lower than last month’s reading of 6.6% but still well above target.

Source: GSAM, CNBC, JPMorgan

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