Investors watch U.S. midterm results

Stocks in motion: Evotec down 8%, Vantage Towers up 11%

Quarterly earnings remain the main driver of individual share price action in Europe.

Shares of the German pharmaceutical company Evotek The Stoxx fell more than 8% below 600 in the early afternoon after the results.

Stocks at the top of the index Watchtowers Vodafone shares a slice of its majority stake in the wireless tower business to private equity firms in GDP and KKR.

– Elliot Smith

Adidas warns of big gains after ending Ye partnership

On Wednesday, Adidas cut full-year guidance after German sportswear giant Kanye West ended its partnership with the Yeezy brand.

The company ended its relationship with Ye, formerly known as Kanye West, on October 25 after the musician launched a series of offensive and anti-Semitic tirades on social media and in interviews.

Adidas projects net income of approximately €250 million ($251.56 million) from continuing operations, below the target of approximately €500 million set on October 20.

Adidas shares were up 3.5% in afternoon trading.

Read the full story here.

– Elliot Smith

Former Treasury official says UK financial activity will show ‘adults take back responsibility’

Former Treasury official says UK financial activity will show 'adults take back responsibility'

Nick Macpherson, the former permanent secretary of the Treasury, said the UK’s financial announcement on 17 November would show global investors that the British economy is stable and “adults are back in business”. He adds that tax increases of 50-50% and spending cuts seem likely.

Analyst says markets focus on Fed rather than US midterm elections

Analyst says markets focus on Fed rather than US midterm elections

Stocks in motion: Smiths Group up 5%, Evotec down 11%

Quarterly earnings remain the main driver of individual share price action in Europe.

Shares of German pharmaceutical company Evotec tumbled more than 11% to the bottom of the Stoxx 600 after the results.

at the top of the index, Smiths Group Shares rose 5% after the British engineering firm posted a 13% increase in quarterly organic revenue.

NBC News says House control won’t be determined tonight

According to NBC News, oversight of the House of Representatives will not be decided on election night.

Republicans only need to win 5 seats to take the House and were considered heavy favorites to the day, but the red wave some investors had been waiting for didn’t materialize. Democrats seem to have won some surprise victories in Ohio and North Carolina.

The NBC News election model currently predicts Republicans will gain a three-seat advantage in the House, but this projection has a large margin of error.

If Democrats continue to hold their ground, control of the House could remain uncertain for days or even weeks. California, a state that often takes a long time to count votes, has several competitive Home races.

— Jesse Pounds

CNBC Pro: Want to play up the rising copper prices? Analysts are giving these 2 stocks more than 200% valuation

Copper is having a good month with both prices and mining shares trading well in the green.

Against this background, CNBC Pro, Global X Copper Miners ETF On FactSet for stocks that analysts expect to outperform.

According to FactSet data, two names with a target price of more than 200% and the purchase rating of all analysts covering them stand out.

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CNBC Pro subscribers can read more here.

— Weizhen Tan

Minerd says divided government positive in fighting inflation

Scott Minerd, global CIO of Guggenheim Partners, said in his speech on CNBC’s “Business on the Ballot” that Republicans’ gains in Congress could help lower inflation in the years to come.

“Divided government is a great result. … Divided government will mean very little action on the fiscal side, which means we won’t get tax cuts or much increase in government spending. That’s good in allowing the economy to cool down more, and indeed the Fed. It can limit the amount of walking he has to do.” Said.

According to NBC News, most of the major races are very close to negotiation.

— Jesse Pounds

CNBC Pro: An investment bank uses AI to analyze Q3 earnings calls. Here’s what they found

Nomura, Japan’s largest investment bank, uses AI to analyze breakdowns of earnings calls to predict whether a stock will outperform.

His research on the third quarter results also shows the sectors with the most positive and negative emotions.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: Experts pick 3 picks in a top-performing industry, including a favorite from Warren Buffett

This industry is among the top performers S&P 500 this month. Three market experts, including a beloved by Warren Buffett, weigh in on their favorite names in the industry.

Professional subscribers can read more here.

— Zavier Ong

The S&P 500 often makes big profits in the year after the midterms, even in a recession

History shows that the stock market typically rises in the year after the midterm elections – even in a recession.

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The year following the midterms has historically been a strong year for students. S&P 500Based on Citigroup data going back to 1960, the benchmark gained 20.1% on average.

Even when there is a recession next year, Citi said returns were surprisingly solid, with the S&P 500 rising an average of 24.4% in three examples in 1974, 1990 and 2006. That’s especially true for now, as many economists expect an economic downturn in 2023 after the Federal Reserve’s aggressive rate hikes to rein in inflation.

Producer prices fell in China, inflation slowed in October

China’s producer price index fell 1.3% year-on-year in October after rising 0.9% in September, beating forecasts of a 1.5% contraction in the Reuters poll.

The country’s October PPI marks the first drop since December 2020, according to FactSet data.

China’s consumer price index rose 2.1% year-on-year in October after climbing 2.8% in September.

The land and sea Chinese yuan hovered at 7,2500 shortly after the economic data were released.

Read the full story here.

— Evelyn Cheng, Jihye Lee

European markets: Here are the opening calls

European markets will open lower on Wednesday as investors watch closely the US midterm results.

The UK’s FTSE index opened 17 points to 7,290, Germany’s DAX fell 37 points to 13,645, France’s CAC to 6,426 and Italy’s FTSE MIB, according to data from IG. It is expected to drop 86 points to 23,498.

Earnings come from Adidas, Bilfinger, Commerzbank, E.On, Siemens Healthineers, Ahold Delhaize, ABN AMRO, M&S, Aviva, ITV and JD Wetherspoon.

The data released on Tuesday includes Russia’s October inflation figures.

— Holly Ellyatt


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