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Morning Brief: Futures edge higher as election results come in as expected

Wednesday, November 7, 2018

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What to watch today

All eyes will be on the stock market’s reaction to the U.S. midterm election results. As expected, the Democrats took control of the House of Representatives while Republicans maintained control of the Senate. U.S. equity futures were modestly higher as the results came in.

The stock market has generally seen positive returns in the 12 months following midterm elections, according to John Lynch, LPL Financial’s chief investment strategist. “When it comes to stock market performance, we would argue that election outcomes are not particularly important. Regardless of the election’s outcome, the S&P 500 Index has been positive during the 12 months following the midterm election 18 straight times going back to 1946,” he said in a note on Tuesday.

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Top news

(Photo by Nicholas Kamm / AFP) (Photo credit should read NICHOLAS KAMM/AFP/Getty Images)

Here’s everything Trump is going to blame on Democrats: President Trump is a pre-emptive scapegoater who thinks ahead when contemplating who to blame for things gone wrong. And he just got an important new bogeyman. With Democrats winning the House of Representatives in this year’s midterm elections, half of Congress will be controlled by the party in opposition to Trump. They won’t be able to pass laws on their own, or override a Trump veto. But House Democrats will be a huge new presence in Washington, because Trump is likely to blame them for everything that doesn’t go his way. [Yahoo Finance]

Papa John’s reports tumbling sales: Papa John’s (PZZA) reported disappointing third-quarter financial results and slightly better-than-anticipated sales in North America. Same-store sales, a key metric for restaurants, fell less than expected at a 9.8% rate. Analysts were expecting a sales decline of 10.7% for the third quarter.

Tinder-parent Match Group gives disappointing guidance: Match Group (MTCH) beat Wall Street’s expectations on the top and bottom lines in the third quarter as new subscribers continued to swipe right on dating app Tinder. Earnings on a GAAP basis were 44 cents per share, 11 cents higher than consensus estimates, according to Bloomberg data. Revenue increased 29% year-over-year to $444 million, exceeding the average forecast of $438.21 million. [Yahoo Finance]

Dell discusses sweetening tracking-stock offer: Dell Technologies Inc. has been contacting large shareholders of an affiliate about sweetening a roughly $22 billion bid to buy them out before the unpopular deal goes to a vote next month. [The Wall Street Journal]

Adidas hikes 2018 profit outlook on top-end shoe success: Adidas raised its 2018 profit forecast on Wednesday after selling more of its top-end sports shoes, although the German sportswear and fashion firm cut its revenue target due to a fall in sales in western Europe. Chief Executive Kasper Rorsted has focused on improving profitability at Adidas, which long lagged bigger rival Nike, since he took over in 2016. [Reuters]

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The Morning Brief provides a quick rundown on what to watch in the markets, top news stories, and the best of Yahoo Finance Originals.