Oil prices swung back and forth on Tuesday and extended losses from earlier in the week, on a day marked by U.S. bombing of Iran ahead of the elections. Major oil stocks also fell, including Chevron and ExxonMobil.
KFC announced the closure of its restaurants in Puerto Rico after ending its relationship with local franchisee Encanto Restaurants, which it says failed to meet its quality standards. The move affects an operation of 83 locations according to 2024 data. Taco Bell also reported the closure of all its locations on the island after the same breakup. Both brands said they are looking for a new operator, without giving a reopening date, and stated: "We hope to be able to serve you again very soon."
Americans head to the polls this Tuesday, November 3, in midterm legislative elections shaped by the high cost of living, inflation and economic discontent. All 435 House seats and one third of the Senate are up for renewal. Polls forecast that Democrats would win back the House majority, while the Senate remains uncertain. Regular gasoline averages $4.15 per gallon, about 35 cents above the previous record set in 2022.
JetBlue Airways raised the price of checking a bag for the third time in less than a year, amid rising fuel costs. A first checked bag in economy now costs $50 if paid more than 24 hours before departure during a non-peak travel period, and $60 if paid within 24 hours of departure. During peak periods the fee is $55, or $70 within 24 hours of departure. The airline said it aims to offset rising fuel and operating costs.
American voters head to the polls on Tuesday for the midterm elections, which will determine control of Congress and could add to investors' concerns about oversight of the artificial intelligence sector and how the debt ceiling will be addressed next year. Since Donald Trump's second term began in 2025 with Republican majorities in both chambers, the S&P 500 has gained about 27%, partly driven by AI spending. Federal deficits stand at around $2 trillion.
The AI infrastructure buildout faces a new bottleneck: external capital. According to the analysis, CoreWeave's 9.75% notes due 2031 were trading at 79.46 cents on the dollar on October 20, its five-year CDS spread topped 1,140 basis points and the stock fell 36% during the month. Elon Musk said debt markets had almost cut off money to any company without revenue outside AI data centers. Meta, Microsoft and Anthropic turned to equity and debt issuance.
Bill Ackman, founder of Pershing Square Capital Management, told CNBC the stock market is "broken" and that the rise of speculative trading is driving wild price swings due to leverage in the system. "We're back to the casino-type markets when there was 95% leverage," he said. He pointed to one-day leveraged vehicles, perpetual futures and sports betting as dangerous for investors treating the market as a get-rich-quick scheme. Still, he said those dislocations let him buy Microsoft, Amazon and Alphabet at attractive prices.
Shopify shares plunged after its third-quarter results fell short of expectations on gross operating profit, revenue and gross merchandise value (GMV), according to Investor's Business Daily. The company did beat earnings estimates for the quarter.
S&P 500 futures slipped 0.1%, extending losses to a fourth consecutive session on a day marked by the start of voting in the US midterm elections and another pullback in the AI trade. In Europe, pan-region futures fell 0.9%, German DAX futures 0.8% and FTSE futures 0.2%. Brent rose 0.4% to $105.19 after US strikes on Qeshm Island in the Strait of Hormuz.
Disney is preparing a new round of layoffs affecting thousands of employees, according to Bloomberg News. Some managers were told to cut expenses by 20% on an annualized basis. It would be the fourth round of job cuts in 2026 under CEO Josh D'Amaro and the one affecting the most staffers. D'Amaro aims to reinvest part of the savings in film and TV programming, technology and the theme parks and cruise ship businesses. Disney declined to comment.
Walt Disney is preparing a new round of layoffs that could affect thousands of people across several divisions, including TV networks and the motion picture studio. According to sources cited by Deadline, managers of the affected teams were given annual cost-saving targets of as much as 20%. Disney declined to comment on the cuts, first reported by Bloomberg. The company has been cutting staff since Josh D'Amaro became CEO on March 18, with layoffs in April, July, September and last week.
Dow Jones futures point to a weaker session after the AI trade dived on Monday and Apple shares sold off following its earnings release. Market attention is also turning to Tuesday's midterm elections.
Asian tech stocks came under fresh pressure on Tuesday as investors fretted over AI spending and earnings, while oil steadied after the previous session's tumble, ahead of the start of voting in the US midterm elections. European futures fell 0.9% and S&P 500 futures were 0.1% lower, their fourth straight day of declines. Japanese markets were closed for a holiday.
Weil Gotshal, a nearly century-old law firm, is preparing to wind down and send nearly 600 associates into the job market. An anonymous associate told Bloomberg Law that members of the management committee used insider information to negotiate deals with other firms and often left associates behind. According to the account, the associate received more than 100 LinkedIn requests from headhunters in the two days after Executive Partner Barry Wolf announced the news. Associates and staff will receive salary and benefits for 90 days.
The November 3 US midterm elections could add to investor concerns about AI spending and debt ceiling negotiations, Reuters reported. Since Donald Trump returned to the White House in 2025 with full Republican control of Congress, the S&P 500 has gained about 27%, helped by capital spending on AI and strong earnings growth, while Treasury yields are substantially higher. Forecasts point to Democrats winning the House, with Senate control less clear.
Days before the November 3 midterm elections, the Latino vote in the United States is shaping up as an electorate without an owner. According to Pew Research Center, about 39 million Latinos are eligible to vote, 16% of the national electorate, more than five million more than in 2022. Pew also found that 86% of registered Latino voters consider the economy very important and 74% believe Trump's economic policies have worsened conditions in the country.
Lula da Silva's victory, giving him a fourth presidential term in Brazil, reshapes the regional political map while the economy reacts nervously and the Real falls on fears of capital flight. Colombia faces the challenge of strengthening trade, political and technological ties with a neighbor that is its fourth-largest export partner. The text points to tensions with Washington, pressure from the right in Congress and on the streets, and a complex judicial scenario for the Bolsonaro family.
The high cost of living dominates the US midterm elections, where Donald Trump's Republicans risk losing control of Congress. Average inflation from April to September was 3.67%, compared with 2.67% in Joe Biden's last six months. Regular gasoline now costs almost 50% more than in February and diesel almost 70% more. The economy grew 3.4% in the third quarter, driven by investment in artificial intelligence.
US index futures opened Sunday with gains of between 0.2% and 0.4%, after an October in which the biggest AI and chip stocks lost about $5 trillion in market value since Oct. 6, while the rest of large US companies added about $1.3 trillion. The week includes Apple's earnings, the midterm elections and the October jobs report.
Two employees at the International School of Monterey in Seaside, California, were arrested for allegedly diverting nearly $300,000 in school funds. The investigation began when an administrator flagged an unusually large Costco order of eggs, bacon and potatoes placed by Terry Bumper, former food services director, who is accused of diverting $58,800 through products used in his personal catering business. Chief Financial Officer Rosa Segura is accused of diverting more than $238,000 for personal expenses.
