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US equity markets climbed on as Americans headed to the polling booths for the midterm elections, shrugging off a mid-afternoon dip - Dow rallied +334-points or +1.02%, The broader S&P500 rose +0.56%, with Materials (up +1.68%) leading ten of the eleven primary sectors higher. Consumer Discretionary (down -0.30%) was the only primary sector to settle in the red. The Nasdaq settled +0.49% higher. The small capitalisation Russell 2000 added +0.19%.

US equity markets advanced as US voters head to the polling booths tonight AEST for the midterm elections, and with investors eyeing inflation data later in the week - Dow +423-points or +1.31%. Walgreens Boots Alliance Inc gained +4.10% following reports that No. 2 U.S. pharmacy chain would invest ~US$3.5B to support the primary care provider VillageMD’s acquisition of urgent care provider Summit Health in a deal valued at nearly US$9B. Boeing Co (up +3.06%) was another notable Dow performer. The broader S&P500 +0.96%. The Nasdaq rose +0.85%. Apple Inc added +0.39% despite the tech company said iPhone production has been temporarily reduced because of COVID-19 restrictions in China. Meta Platforms Inc gained +6.53% a day after the Wall Street Journal report that said the company could start layoffs as soon as Wednesday (9 November). The small capitalisation Russell 2000 rose 0.64%. Carvana Co (down -15.64%) continued to tumble, with trading in the stock briefly halted after the on-line used car retailer reported disappointing third-quarter results after the closing bell of last Thursday’s (3 November) session.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

New additions this month: Commonwealth Bank (ASX:CBA) and Westpac (ASX:WBC).

View the full Morgans Best Ideas list: https://morgans.com.au/Blog/2022/November/Best-Ideas-November-2022

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US equity markets closed out a tough week on a positive note as investors parsed the latest monthly jobs report - Dow gained +402-points or +1.26%, The broader S&P500 climbed +1.36%, PayPal Holdings Inc fell -1.79% after the company trimmed their revenue full year guidance results after the closing bell of last Thursday’s (3 November) session, with Chief Executive Dan Schulman noting that PayPal was “seeing a pullback in discretionary goods that are being spent on by consumers.” The Nasdaq rose +1.28%. Meta Platforms Inc (up +2.11%) is planning to begin large-scale layoffs this week according to a report in The Wall Street Journal. The small capitalisation Russell 2000 +1.13%. BioNTech SE rose +6.24% after China approved the biotechnology company's mRNA COVID-19 vaccine for use among the expatriate population in the People's Republic of China. During German Chancellor Olaf Scholz's visit to Beijing, he and Chinese leader, Xi Jinping, also broached the subject of a pathway for approval of the vaccine for use among the wider Chinese population, The Wall Street Journal reported. Separately, BioNTech and partner Pfizer Inc (up +1.40%) said new data from a Phase 2/3 trial showed that the booster for companies' omicron BA.4/BA.5-adapted bivalent COVID-19 vaccine demonstrated a "robust neutralizing immune response" after one month. The companies said immune responses for those getting the booster were "substantially higher" than for those who only received the original COVID-19 vaccine, with similar safety and tolerability profiles. Carvana Co tumbled -38.95% to post its worst single session performance on record after the on-line used car retailer reported disappointing third-quarter results after the closing bell of last Thursday’s (3 November) session that prompted Morgan Stanley to pull their rating and price target on the company, citing deterioration in the used car market and a volatile funding environment. Friday also saw the expiration of weekly and daily options tied to single stocks, stock indexes and exchange-traded funds (ETFs).

The S&P500 and Nasdaq extended declines into a fourth day following a choppy session ahead of tonight’s AEST October jobs figures, with Treasury yields continuing to march higher - Dow down -147-points or -0.46%, The broader S&P500 lost -1.06%, with Information Technology (-3.00%) and Communication Services (-2.83%) again among the worst performing primary sectors. Energy sat atop the primary sector leaderboard with a +2.04% gain. The Nasdaq shed -1.73%. Qualcomm Inc dropped -7.66% after the chip maker released its third quarter result after the closing bell of the previous session and cut its full year earnings per share (EPS) outlook citing weakening handset sales. The small capitalisation Russell 2000 lost -0.53%.

US equity markets fell sharply late in the session, relinquishing earlier gains as investors digested the latest Federal Reserve monetary policy decision and a more-hawkish-than-expected tone from central bank Chair Jerome Powell - Dow fell -505-points or -1.44%, Boeing Co gained +2.90% after the planemaker’s Chief Executive Officer (CEO) said the company could generate US$10B in cash annually by mid-decade and expects to return cash to shareholders and will not need equity to get there after 2026. The broader S&P500 shed -2.50%, with Consumer Discretionary (-3.79%), Information Technology (-3.47%), and Communication Services (-3.04%) all declining over >3% to lead all eleven primary sectors lower. The Nasdaq tumbled -3.36%, with Amazon.com Inc (down -4.82%), Netflix Inc (-4.80%) and Meta Platforms Inc (-4.89%) all down almost 5%. The small capitalisation Russell 2000 dropped -3.36%.

US equity markets logged back-to-back losses ahead of the Federal Reserve’s latest interest rate decision and monetary policy pronouncements tomorrow morning AEST (3 November) - Dow eased -80-points or -0.24%, The broader S&P500 -0.41%, with Communication Services (down -1.81%) and Consumer Discretionary (-1.35%) both down over >1% to lead six of the eleven primary sectors lower. Energy sat atop the primary sector leaderboard with a +0.99% gain. The Nasdaq -0.89%. The small capitalisation Russell 2000 added +0.25%.

Young Werther and Gold Trip are our best-value bets. Remember our recommendation is for the best value bet rather than the highest probability of winning. Gamble responsibly.

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US equity markets retreated on the final trading day of the month, however the Dow Jones Industrial Average still recorded its largest monthly percentage gain since January 1976 - Dow eased -129-points or -0.39%, The broader S&P500 -0.75%, with Communication Services (down -1.68%) and Information Technology (-1.34%) both losing over >1% to lead ten of the eleven primary sectors higher. Energy (up +0.60%) was the only primary sector to advance overnight. The Nasdaq fell -1.02%, with Big Tech under fresh pressure. Meta Platforms Inc fell -6.09% to hit a fresh 52-week low, Alphabet Inc -1.85% and Microsoft Corp -1.59%. The small capitalisation Russell 2000 lost -0.49%.

Morgans' Senior Analyst Nathan Lead gives his insight into the November reporting season for the Banks sector in Australia. The coverage is; Australia and New Zealand Banking Group (ASX:ANZ), Commonwealth Bank of Australia (ASX:CBA), National Australia Bank (ASX:NAB) and Westpac Banking Corp (ASX:WBC).

Check out more from Morgans:

Visit the Morgans website: www.morgans.com.au
Check out our blog: www.morgans.com.au/Blog

On Facebook: www.facebook.com/MorgansAU
On Instagram: www.instagram.com/Morgans.Australia
On Twitter: twitter.com/MorgansAU