Slow voice weighs the stock market; The crypto route continues

Major indexes held close to mid-day session lows Wednesday as the stock market faced two new uncertainties: inconclusive midterm election results and a critical inflation report less than 24 hours away.

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The Nasdaq composite fell 1.1%, while the S&P 500 and Dow Jones Industrial Average fell 0.8%.

Volume rose on the NYSE and fell on the Nasdaq compared to the same time on Tuesday.

The Innovator IBD 50 ETF ( FFTY ) also extended losses, trading down 2% by midday.

Money transfer fintech Intermex (IMXI) tumbled below its 50-day moving average after earnings beat views while sales slowed, according to FactSet. The stock has triggered the 7% selling rule.

The results from Tuesday’s by-election remained undecided.

Republicans are still expected to win a majority in the House of Representatives, but the GOP’s progress so far is less than many had predicted. At the same time, control of the Senate is too close to call.

Thursday morning’s consumer price index (CPI) report has the potential for a bigger stock market move than the election. Econoday’s consensus forecasts a painful 8% jump in October prices year-on-year, with core prices climbing 6.6%.

The yield on the 10-year government bond fell 2 basis points to 4.11% at midday.

Meta News, Earnings Among Stock Market Movements

Meta platforms ( META ) climbed more than 8% after confirming it will cut 11,000 jobs. The redundancies make up 13% of Meta’s total wages and will affect all segments. The parent of Facebook and Instagram also plans to cut office space. Shares are on pace for their best day since April 28, when they rose 17.6%, according to Dow Jones Market Data. But Meta still has its worst year ever.

Halozyme Therapeutics (HALO) broke out of a cup-with-handle base in heavy volume. The biotechnology company beat sales and earnings expectations for the third quarter.

Performance Food Group (PFGC) broke out of a cup with handle as the foodservice industry distributor climbed above a 53.58 buy point. Before the opening bell, the company reported 151% earnings growth and a 42% increase in sales, according to MarketSmith.

The stock market had several earnings reports to weigh.

Trade Desk ( TTD ) beat third-quarter earnings and revenue estimates this morning, thanks to growth in Internet TV. But the ad-buying platform provided revenue guidance below expectations. Shares reversed lower.

Array technologies ( ARRY ) rose more than 13% after beating estimates for the third quarter late Tuesday. The share forms a new base.

Occidental Petroleum ( OXY ) posted mixed financial results late Tuesday, missing earnings views while topping revenue estimates. The stock fell near the 72.14 buy point for an October 26 breakout.

Walt Disney ( DIS ) fell more than 12% in heavy volume after the entertainment company missed showings and posted lower earnings Tuesday afternoon. The stock’s more than 40% drop so far this year makes it the worst year for Disney since 1974, when it fell nearly 54%, according to Dow Jones Market Data.

Home builder DR Horton (DHI) rose more than 6%, despite missing results for the September quarter and posting a decline in orders. DHI stock is forming a cup-with-handle base with a buy point at 79.05.

Bitcoin, Crypto Plunge on Liquidity Concerns

Crypto assets continued to slide after a liquidity crisis forced FTX to sell its non-US assets to rival Binance. FTX users on Monday withdrew more than $1 billion due to fears that the cryptocurrency exchange could become insolvent. Earlier today, CoinDesk reported that Binance is likely to walk away from the bailout.

The crisis raised concerns about broader liquidity problems in the crypto world.

Bitcoin fell more than 16% in the past 24 hours to below $17,000, according to CoinDesk. The digital coin is at its lowest price since November 2020. Ethereum is doing even worse, down nearly 17% to $1,213.

The fallout spread to the stock market, with the ProShares Bitcoin Strategy ETF (BITO) dumping 6.8% while Coinbase Global (COIN) fell 7.9%.

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