Marketbites: Binance Backs Out of FTX Rescue
Portfolio Manager Commentary:
Stocks were lower on Wednesday — following recent market gains — as results of the midterm elections provided no clear answers about who would control Congress yet. A crypto selloff also weighed on markets.
The declines occurred after crypto exchange Binance said it’s backing out of plans to acquire its rival FTX, citing the results of a due diligence exam, as well as recent reports of mishandled customer funds and alleged U.S. agency investigations of FTX. The decision weighed on overall risk sentiment and dragged down the tech sector.
Disney shares plummeted 13.16% after quarterly losses at the company's streaming business more than doubled from a year earlier and executives vowed to cut back on spending in the division. Chief Executive Bob Chapek said Tuesday that the streaming business had reached peak losses in the quarter, and that the business is still on track to reach profitability in fiscal 2024, “assuming we do not see a meaningful shift in the economic climate.”
Chart of the Day:
Investors were also weary ahead of the October consumer price index report due out on Thursday morning at 8:30 a.m. ET. Economists polled by Dow Jones anticipate that headline CPI grew by 7.9% from the prior year, down slightly from September’s gain of 8.2%.
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