Get ready for some big news from Disney as they are about to report their earnings following the bell. Meanwhile, Microsoft shares have reached an all-time high and Democrats are celebrating significant wins on Election Day.
Investors are set to begin their trading day following important developments in the market. The Nasdaq and the S&P 500 continue their longest winning streak in almost two years, while the Dow is experiencing its longest positive streak since July. Treasury yields have slightly eased following the Federal Reserve’s decision to hold rates steady, and recent jobs data suggesting a softening in the economy. Investors are also keeping a close watch on upcoming earnings reports, including Disney on Wednesday and Walmart and Target next week.
In the Disney camp, investors are eagerly awaiting the company’s earnings report to see if the recent restructuring efforts by CEO Bob Iger will pay off. With the stock showing signs of weakness, activist investor Nelson Peltz and his firm, Trian, are poised to make a move depending on the outcome of the report. Peltz could even launch a proxy fight for board seats if he is not pleased with the results.
On the other side of the spectrum, Microsoft is riding high as its stock hit an all-time high. The company’s partnership with OpenAI and its focus on artificial intelligence are getting positive reviews from Wall Street, particularly in relation to Microsoft’s Office products and Azure cloud business. Meanwhile, mortgage rates have seen a decline, leading to a jump in home-loan demand, spurring interest in the housing market.
Finally, in the political realm, the outcomes of recent elections have implications for President Joe Biden, whose low poll numbers are being offset by strong showings for Democratic candidates in state races. These wins include Democratic Gov. Andy Beshear’s re-election in Kentucky and voters in Ohio enshrining the right to an abortion. In Virginia, Democrats have taken control of both chambers of the statehouse, dealing a blow to Republican Gov. Glen Youngkin.
Overall, these developments are key for investors and give an insight into the broader market action. Stay informed and follow the latest news like a pro on CNBC Pro.
