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    Una noche electoral clave en Estados Unidos

    Las contiendas reñidas determinarán el balance de poder en el Congreso, las legislaturas estatales y las gobernaciones. Los reporteros del Times informan desde distintos puntos de todo el país.Nuestra cobertura en español del Día de las Elecciones ha terminado por hoy. Pero el Times sigue informando minuto a minuto sobre la contienda. Lee aquí, en inglés, los informes más recientes.Las urnas cerraron en los estados pioneros de Nuevo Hampshire, Georgia, Virginia, Ohio y Carolina del Norte, mientras los tabuladores de votos se preparaban para dar los primeros anuncios de las elecciones de mitad de mandato de 2022.Estas votaciones se perfilan como unas de las más importantes de los últimos años, ya que los electores determinarán qué partido controlará no solo la Cámara de Representantes y el Senado, sino 36 gobernaciones y una serie de cargos estatales clave, desde secretarios de estado hasta jueces de la Corte Suprema. Sus decisiones influirán en el resto de la presidencia de Joe Biden y podrían afectar a la propia democracia representativa.Con la llegada de los resultados de distintos estados, la aguja electoral del Times ya está funcionando. Utilizamos los resultados anticipados y los datos de las encuestas para estimar en tiempo real el resultado de las elecciones para el Senado y la Cámara de Representantes. La aguja comienza la noche mostrando una sacudida en el Senado y favoreciendo ligeramente a los republicanos en el control de la Cámara de Representantes.Hasta el momento, dos pioneros han ganado las carreras para gobernador, según The Associated Press: Wes Moore, demócrata, fue elegido primer gobernador negro de Maryland, y Maura Healey, demócrata, se convirtió en la primera gobernadora electa de Massachusetts. También será la primera mujer abiertamente lesbiana en ocupar ese cargo en el país.Y el gobernador republicano de Florida, Ron DeSantis, fue reelegido con holgura, lo que podría generar un enfrentamiento por la nominación presidencial republicana de 2024 con el expresidente Donald Trump.Los sondeos a boca de urna indican que, en general, la economía y la inflación eran lo que más les importaba a los votantes, y favorecían a los republicanos para solucionar la incertidumbre económica.También hay indicios de que Estados Unidos podría dirigirse de nuevo a una batalla sobre la mecánica del voto. En Arizona, la candidata republicana a la gobernación, Kari Lake, ya ha difundido afirmaciones inexactas sobre un percance con las máquinas de votación en el condado de Maricopa, el más poblado de su estado.Las urnas no cerrarán hasta tarde en algunos de los principales campos de batalla: Arizona, Nevada, California y Oregón. Y el conteo de votos se prolongará probablemente en Pensilvania, un estado en el que una candente carrera por la gobernación determinará las leyes sobre el aborto y donde una reñida campaña por el Senado podría definir el control de los partidos en la cámara alta del Congreso.Esto es lo que debes saber para emitir tu voto si aún no lo has hecho, y para seguir los resultados:Los procedimientos de votación varían según el estado; puedes encontrar el tuyo aquí [en inglés]. Si no estás registrado, algunos estados permiten el registro en el mismo día; aquí puedes comprobar si el tuyo lo permite. Si vives en Alaska y tienes dudas sobre su sistema de votación por orden de preferencia, también te lo contamos [en inglés].Las primeras urnas cerraron a las 6 p. m. (hora del Este) en partes de Indiana y Kentucky, y las últimas cierran a la 1 a. m. (hora del Este) en las Islas Aleutianas del oeste de Alaska. Aquí hay una guía detallada de los cierres de urna. Recuerda que si estás en la fila cuando cierran las mesas de votación, puedes votar.No hay mejor lugar para ver los resultados que nytimes.com. Así es como anunciamos los ganadores en la noche de las elecciones. Y aquí es donde obtenemos los últimos resultados de todo el país. Acá se explica nuestra aguja para ayudarte a entender qué candidato o partido va camino de la victoria.Pueden pasar días antes de tener una imagen clara de los resultados. Aquí encuentras un resumen de la línea de tiempo probable. Sin embargo, hay un puñado de elecciones que podrían definirse pronto y servir de indicadores para el resto del país. More

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    Moore Will Become Maryland’s First Black Governor

    Wes Moore, a Democrat, celebrity author and former nonprofit executive, won Maryland’s election for governor, according to The Associated Press, defeating a far-right Republican and becoming the first Black governor of the state.Mr. Moore was declared the winner over Dan Cox, a state legislator who won the Republican primary with support from former President Donald J. Trump but found little backing among the independent and moderate Democratic voters that have, in the past, propelled Maryland Republicans to statewide office.A newcomer to politics, Mr. Moore, 44, emerged in July from a crowded primary packed with political veterans, relying on his biography and an endorsement from Oprah Winfrey.He campaigned on the standard Democratic platform, calling for an end to child poverty in Maryland and more state investment in public transit and renewable energy projects.An Army veteran, Mr. Moore had been known primarily for writing a best-selling book, in which he claimed to be a Baltimore native, even though he is not. But neither his Democratic primary rivals nor Mr. Cox found much traction among voters in attacking Mr. Moore on that issue.Though Gov. Larry Hogan, a Republican, led the state for the past eight years, Mr. Cox received little help from the party’s establishment. Mr. Hogan refused to endorse him and major Republican donors in the state defected to support Mr. Moore. More

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    Maxwell Alejandro Frost Secures Generation Z’s First House Seat

    Generation Z officially has a seat in Congress.Maxwell Alejandro Frost, a 25-year-old Democrat, won his election on Tuesday in Florida’s 10th Congressional District over Calvin Wimbish, a Republican, according to The Associated Press. Mr. Frost will represent the Orlando-area seat being vacated by Representative Val Demings, the Democratic nominee for senator.His victory guarantees that the next Congress will include at least one member of Generation Z, whose oldest members were born in 1997 and are newly eligible for the House, which has a minimum age of 25. He could be joined by Karoline Leavitt, a Republican running in New Hampshire’s First Congressional District.It is rare for 25-year-olds to be elected to Congress. Before Representative Madison Cawthorn, Republican of North Carolina, won in 2020, it hadn’t happened in more than 45 years.Mr. Frost is a progressive Democrat whose campaign focused on issues of particular salience to many young voters: gun violence, climate change, abortion rights and Medicare for all. His background is in activism, including work with the student-led anti-gun-violence movement March for Our Lives.In an interview with The New York Times in August, he argued that he brought a different perspective to politics because of the era he had come of age in: one of mass shootings, increasingly frequent natural disasters and broad social upheaval.“I come from a generation that has gone through more mass-shooting drills than fire drills,” he said. “This is something that my generation has had to face head-on: being scared to go to school, being scared to go to church, being scared to be in your community. That gives me a sense of urgency.” More

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    Voting Takes Center Stage During US Midterm Elections

    “I want to do everything I can to use my voice to create the kind of democracy that deserves to exist,” one voter said.They had been assured that they were wasting their time. That the fix was in. That a fair outcome was impossible, what with all that Democratic ballot-rigging — or was it Republican voter suppression?But millions of Americans gave voting a go anyway on Tuesday, dutifully turning up across the country to cast ballots at schoolhouses, libraries and V.F.W. posts.After a campaign marked by the direst of claims, it was, in its way, a small act of faith.“It’s going a little bit too far left,” said one voter, Lucas Boyd, 43, explaining what had brought him to a polling place in Haymarket, Va. “We are trying to bring it back to a middle ground, and that is really why I came today.”Cheryl Arnold, who was also casting a ballot in Haymarket, had a different outcome in mind. A sales worker in her 50s, she said her aim was “not furthering the Republican agenda.”But she and Mr. Boyd, a software salesman, shared at least one fundamental belief: that voting might make a difference.“I want to do everything I can to use my voice to create the kind of democracy that deserves to exist,” Ms. Arnold said.A voter dropping off a ballot in American Fork, Utah, on Tuesday.Kim Raff for The New York TimesStill, it was an Election Day of unusual tensions, in keeping with a campaign in which accusations of voting fraud were sometimes cast even before the ballots themselves were, and in which some private citizens took it upon themselves to take up arms and “guard” absentee ballot boxes.“I definitely know where the exits are,” said one poll worker in Flagstaff, Ariz., Brittany Montague. “Now more than ever, we’re so polarized, and there isn’t a lot of trust in the system.”In Arizona on Tuesday morning, reports of dozens of malfunctioning ballot-counting machines in Maricopa County prompted a surge of voter fraud claims across right-wing media.“None of this indicates any fraud,” said Bill Gates, chairman of the Maricopa County board of supervisors, a Republican. “This is a technical issue.”A video captured election workers trying to reassure voters.“No one’s trying to deceive anybody,” one poll worker says.“No, not on Election Day. No, that would never happen,” the person recording the video replies sarcastically.Even before the day began, more than 40 million Americans had cast early ballots, and millions more were joining them on Tuesday.In Michigan, the abortion issue was a big draw at the polls. After the Supreme Court decision reversing Roe v. Wade, Michigan was one of five states that had abortion-related measures on the ballot. In Birmingham, an affluent community outside Detroit, a slow stream of people turned out to vote on Proposal 3, a ballot measure to protect abortion rights.Outside the Baldwin Public Library, where Birmingham city workers had turned metered parking into “voter-only parking” for the day, Alexandra Ayaub said supporting the measure was her main reason for voting.“Michigan should be a safe place for women,” said Ms. Ayaub, 31, who described herself as leaning Democratic.In nearby Warren, Rosemary Sobol also said the initiative was her main motivation for voting — even if she was still undecided.“I’m not completely anti-abortion, but I’m also a Catholic,” said Ms. Sobol, an 81-year-old retired principal. “It’s a very hard decision.”For some voters, it was a day to reconsider past positions.Andrew O’Connell said that he had been born into a Democratic family and that he had long taken pride in switching up his votes between the parties, but at 6:30 Tuesday morning, he could be seen standing outside a busy polling location on Staten Island holding a sign displaying all of the Republicans on the ballot. Everything changed with the social unrest in 2020, he said.“I believe safety took a back seat back when the protests were going on,” Mr. O’Connell said. “We sat back and watched that happen and some folks didn’t think there was anything wrong with it.”A family voting in Miami Beach, Fla., on Tuesday.Scott McIntyre for The New York TimesFor other voters, it was a day to reconsider life choices — like where to live.When Albert Latta, 67, left a polling place in Kenosha, Wis., he had a weary look. The most important issue for him in this election? “Honesty,” he said.Mr. Latta said that he had voted Democratic in the races for governor and the Senate and that he was so tired of deception from Republicans — on election integrity, among other issues, he said — that he was considering picking up and moving across the state line into the blue of Illinois.“How Wisconsin goes in this election may have a lot to do with that decision,” he said. “I call today’s vote the biggest I.Q. test this country has ever taken.”For some voters, a hop across state lines, it appeared, might not do the trick.In the city of Folsom, in one of liberal California’s more conservative regions, John Butruce, 66, offered a fairly succinct synopsis of his take on things before casting his ballot.“I don’t like the taxes, I don’t like the inflation, I don’t like the crime,” Mr. Butruce said. “I don’t like the state of the country or the state of the state.”In Kenosha, where voters were deciding whether to re-elect Gov. Tony Evers, a Democrat, the shadow of the demonstrations and riots that tore through the city in August 2020 after a police shooting loomed large.“I just want to get him out,” said Abraham Gloria, 40. “He could have stopped what happened with the riots, and he didn’t.”But as she headed into a church in Kenosha to vote, Phyllis Sheets, 60, said she was supporting the Democrats. Democracy, she said, depended on it.“I’m tired of people co-signing foolishness,” Ms. Sheets said. “It’s like people are drinking the silly juice around here: conspiracy theories, not conceding elections, QAnon, Jan. 6. It’s not American.”Christine Grant looking over information while filling out her ballot in Detroit on Tuesday.Brittany Greeson for The New York TimesNot everyone was thinking about this election, even as it was still unfolding. They were too busy talking about the next one, and news of a “very big announcement” from a Republican politician in Florida.In Warren, Mich., Mike Smith, 58, had just one quibble.“I hope he comes back sooner than 2024,” Mr. Smith said. “I still don’t accept 2020.”Word that Donald J. Trump might soon make formal what has long been expected played out at polling sites across a polarized country to a mix of elation and fear.“I am terrified,” said Liz Lambert, 57, a marketing manager in Scottsdale, Ariz., clutching a coffee cup as she headed to work after casting her ballot. “This country has been through enough. We need stability and maturity and leadership.”In Haymarket, Va., Gloria Ugbaja declined to get engaged by a possible Trump announcement about another run for president.“I thought it was a distraction,” said Ms. Ugbaja, 47, who works in health care management.“Whether he announces or not is his business,” she said. “Every American has to keep moving forward. Whether he tries to run or not, it indirectly does not affect what the average American has to do on a daily basis.”Reporting was contributed by More

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    Five States Have Abortion Referendums on the Ballot

    The Supreme Court’s overturning of Roe v. Wade in June at first appeared like it might change Democratic fortunes in this year’s midterm elections, giving the party an energizing issue even as inflation remained high and President Biden’s approval ratings remained low.That momentum was clear in August, when voters in deep-red Kansas rejected a proposed amendment to the state Constitution that would have allowed legislators to enact abortion restrictions.But Republicans have gained an edge as voters have expressed concern about the inflation and the economy. Democrats are bracing for a red wave in the House, and control of the Senate hinges on close contests.Even so, abortion remained a hot-button topic heading into Election Day. Races for governor and legislature in several states could have implications for future abortion legislation. And in five states, abortion is directly on the ballot.Here are the states where abortion referendums will be decided on Election Day.MichiganMichigan’s Reproductive Freedom For All proposal would protect the right to make decisions about “all matters relating to pregnancy” in the state, where a 1931 law that would make abortion illegal was blocked from taking effect by a court ruling earlier this fall.The proposal would allow the state to regulate abortion after fetal viability, which is usually around 24 weeks, except in cases where abortions are medically necessary to protect the “physical or mental health” of the woman. The 1931 law does not include exceptions for rape, incest or the health of the mother, and it threatens doctors who perform the procedure with up to 15 years in prison. CaliforniaVoters will decide whether to enshrine abortion rights in the state Constitution. Separately, California’s Democratic governor, Gavin Newsom, has urged Hollywood companies to stop filming in states like Oklahoma and Georgia, where stricter abortion laws are in place, and recently signed a package of 12 bills meant to strengthen abortion rights in the state, where the procedure is permitted up to fetal viability.KentuckyKentucky voters will be asked to approve a revision to the state Constitution to make clear it does not protect the right to abortion. It is a safeguard against potential legal challenges to the state’s existing law restricting abortion, which went into effect over the summer.MontanaThe ballot initiative won’t affect typical abortion access in the state, where the procedure is permitted until viability or if necessary to prevent a serious health risk to the mother.Rather, the measure would require mandatory medical interventions to save those the state defines as “born-alive” infants — which can include fetuses diagnosed as nonviable — and establish criminal penalties for health care providers who refuse to intervene.VermontThe Reproductive Liberty Amendment, if enacted, would enshrine the right to an abortion in the state Constitution. Abortion is already legal in the state, without a time limit, and that will continue even if the amendment fails.Lauren McCarthy More

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    The World’s Democracies Ask: Why Can’t America Fix Itself?

    Conversations across continents reveal alarm over the United States’ direction, as it slides away from ideals it once pressed other nations to adopt.Lin Wei-hsuan was just a child when he observed his first Taiwanese election almost two decades ago. His parents took him to watch the vote-counting, where volunteers held up each paper ballot, shouting out the choice and marking it on a board for all to see — the huge crowd of citizens inside, and many more watching live on television.The open process, established after decades of martial law, was one of several creative steps that Taiwan’s leaders took to build public trust in democracy and to win over the United States, whose support might deter China’s aim of unification.At the time, America was what Taiwan aspired to be. But now, many of the democracies that once looked to the United States as a model are worried that it has lost its way. They wonder why a superpower famous for innovation is unable to address its deep polarization, producing a president who spread false claims of election fraud that significant parts of the Republican Party and the electorate have embraced.“Democracy needs to revise itself,” said Mr. Lin, 26, a candidate for a local council, campaigning for efficient trash removal and lowering Taiwan’s voting age to 18 from 20. “We need to look at what it’s been doing, and do better.”Taiwan’s National Day celebration in Taipei in October.Lam Yik Fei for The New York TimesFor most of the world, the U.S. midterms are little more than a blip — but they are another data point on what some see as a trend line of trouble. Especially in countries that have found ways to strengthen their democratic processes, interviews with scholars, officials and voters revealed alarm that the United States seemed to be doing the opposite and sliding away from its core ideals.Several critics of America’s direction cited the Jan. 6 riots, a violent rejection of democracy’s insistence on the peaceful transfer of power. Others expressed concern about states’ erecting barriers to voting after the record turnout that resulted from widespread early and absentee voting during the pandemic. A few said they worried that the Supreme Court was falling prey to party politics, like judiciaries in nations struggling to establish independent courts.“The United States did not get into the position where it is now overnight,” said Helmut K. Anheier, a sociology professor at the Hertie School in Berlin and a principal investigator for the Berggruen Governance Index, a study of 134 countries in which America sits below Poland in quality of life as defined by access to public services such as health care and education. “It took a while to get there, and it will take a while to get out.”The nation’s deep polarization has helped prevent change in election systems.Hilary Swift for The New York TimesTough Critiques From Old FriendsOn a recent afternoon in Halifax, Nova Scotia, which has long had economic and family ties with Boston, visitors and residents expressed sorrow, disappointment and surprise about their neighbor’s political situation.“I’m very concerned,” said Mary Lou MacInnes, a registered nurse who was visiting the Halifax Public Gardens with her family. “I never thought it would happen in the U.S., but I think it’s going to be perhaps autocratic going forward.”The State of the 2022 Midterm ElectionsElection Day is Tuesday, Nov. 8.Final Landscape: As candidates make their closing arguments, Democrats are bracing for potential losses even in traditionally blue corners of the country as Republicans predict a red wave.The Battle for Congress: With so many races on edge, a range of outcomes is still possible. Nate Cohn, The Times’s chief political analyst, breaks down four possible scenarios.Voting Worries: Even as voting goes smoothly, fear and suspicion hang over the process, exposing the toll former President Donald J. Trump’s falsehoods have taken on American democracy.In 1991, studies showed that Canadians were almost evenly divided on which of the two countries had the better system of government. In a follow-up survey last year, only 5 percent preferred the American system.For some, in Canada and in other countries that consider themselves close friends of America, the first signs of trouble emerged with the presidential race in 2000, when George W. Bush won a narrow victory over Al Gore with a decision from the Supreme Court.For others, it was Donald J. Trump’s winning the 2016 election while losing the popular vote, followed by his refusal to accept defeat in 2020 and the lack of consequences for those who parroted his lies — including hundreds of Republican candidates in this year’s election.Mr. Trump has challenged many of the United States’ democratic norms.Damon Winter/The New York Times“A lot of people imagined that Trump was this sort of idiosyncratic one-off and once he was gone, he was no longer president, everything would click back into normal gear,” said Malcolm Turnbull, Australia’s center-right prime minister when Mr. Trump took office. “And that’s clearly not the case.”“It’s like watching a family member, for whom you have enormous affection, engage in self-harm,” Mr. Turnbull added. “It’s distressing.”Other countries do things differently.Canada has undertaken steady changes to improve its election system. In 1920, the country put federal elections under the control of an independent official who does not report to any government or politicians and who has the power to punish rule breakers. Responsibility for setting electoral boundaries was turned over to 10 similarly independent commissions, one for every province, in 1964.Taiwan and more than a dozen countries have also established independent bodies to draw voting districts and ensure that votes are cast and counted uniformly and fairly.The approach is not foolproof. Nigeria, Pakistan and Jordan all have independent election commissions. Many of their elections have still failed to be free and trusted.But in the places where studies show that turnout and satisfaction with the process are highest, elections are run by national bodies designed to be apolitical and inclusive. More than 100 countries have some form of compulsory or automatic voter registration; in general, democracies have been making it easier to vote in recent years, not more difficult.The world’s healthiest democracies also have stricter limits on campaign donations — in Canada, political donations by corporations and unions are banned, as are political action campaigns to promote parties or candidates. And many democracies have embraced change.Canadians almost universally believe their electoral system is better than America’s, a sharp swing in views in recent decades.Mark Blinch/ReutersNew Zealand overhauled its electoral system in the 1990s with a referendum, after elections in which the party with the most votes failed to win a parliamentary majority. South Africa is pursuing changes to its political-party-based electoral system to make it easier for independent candidates to run and win.Such systemic change would be possible in the United States only with overwhelming consensus in Congress, and even then, it may be out of the question in a country where campaign financing is protected as freedom of speech and states cherish their authority over elections in a federal system designed to be a bulwark against autocratic abuses.Jennifer McCoy, a political scientist at Georgia State University who co-wrote a recent report on how polarized countries have depolarized in the past, said partisan divisions have kept the United States stuck in place, but so has myopia: Americans rarely look abroad for ideas.“We have such a myth around our Constitution and American exceptionalism,” she said. “First it makes people very complacent, and second, it takes leaders a very long time to recognize the risk we’re facing. It means it’s very hard to adapt.”Weakening Democracy WorldwideOn a recent morning in Vilnius, the Lithuanian capital, near a street named after Lenin during the Soviet Union’s occupation, a group of demonstrators waved Ukrainian flags and posters calling for an end to Russian aggression.Lithuania is a staunch U.S. ally and vocal supporter of Ukraine’s fight for self-determination, but even among the most committed, doubts about the strength and future of American-led democracy are common.A flag-raising ceremony for the three Baltic States in Vilnius, Lithuania, in March. The Baltic States look warily at their neighbors’ direction.Andrea Mantovani for The New York TimesArkadijus Vinokuras, 70, is an actor and activist who helps organize the rallies. Asked what came to mind when he heard the phrase “American democracy,” he responded with a slogan: “America is the defender of global democracy and the guarantor of the vitality of Western democracies!”That was how it seemed 20 years ago — then came Putin, Trump and a divided America.“Now,” he said, “even the biggest fan of the U.S. has to ask the question: How could this happen to the guarantor of democracy?”It’s a common query in countries that once looked up to the United States.On Thursday, in the political science department at Cheikh Anta Diop University in Dakar, Senegal, half a dozen graduate students gathered in a professor’s office to debate whether elections could be stolen in America.“You take the U.S. democracy after Trump, no doubt that it’s weaker,” said Souleymane Cissé, a 23-year-old graduate student.Some of the world’s leaders have taken advantage of that perceived weakness. President Recep Tayyip Erdogan of Turkey and Prime Minister Viktor Orban of Hungary, elected leaders with autocratic tendencies, have praised Mr. Trump and his wing of the Republican Party.Viktor Orban, the prime minister of Hungary, at the Conservative Political Action Conference in Dallas in August.Emil Lippe for The New York TimesIn India, Prime Minister Narendra Modi, who has pursued a Hindu nationalist agenda, leading to accusations of democratic backsliding, now insists that the West is in no position to pressure any country over democratic benchmarks.From Myanmar to Mali, leaders of military coups have also found that they can subvert democracy without significant international pushback.“If you’re an autocrat or wannabe autocrat, the price that you pay is much less than the price that you used to pay 30 years ago,” said Kevin Casas-Zamora, a former vice president of Costa Rica who heads the International Institute for Democracy and Electoral Assistance, a pro-democracy group with 34 member states. “And that’s partly because of the U.S.”Even reformers are starting to wonder what they can reasonably expect of their most high-minded institutions. In South Africa, when a new chief justice was appointed a few months ago, there were questions about whether the court was apolitical or even could be.All these countries, and more, are confronting an enormous challenge that America has made more visible: antidemocratic actors, inside democracies.Mr. Vinokuras said that Lithuania and its neighbors had been more resistant to such forces because they can see where they lead by looking next door.“The fact that unbridled populism in the Baltic States is not yet gaining ground is, I repeat, because of fascist Russia,” he said.The dismantling of a Soviet-era monument in Riga, Latvia, in August. Kaspar Krafts/F64, via Agence France-Presse — Getty ImagesWhat democracies need, he added, are investments in improvements — the best ideas, no matter where they come from — and a strong commitment to ostracizing those who violate rules and norms.“In general, democracy has degenerated, it has become useless,” he said. “It’s become more like anarchy. Unlimited tolerance for everything destroys the foundations of democracy.”In Taiwan, many people made a similar point: The threat from China makes democracy more precious, helping people remember that its benefits can be realized only through shared connections across divides.“If a country is going to keep moving forward,” Mr. Lin said, “the leaders of both parties should play the role of a bridge.”Reporting was contributed by More

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    Investors Bet on Midterm Bounce for Stock Market

    Stocks were steady on Tuesday morning as voters in the United States headed to the polls and investors bet on Republicans flipping at least one chamber of Congress in the midterm elections.Futures on the S&P 500 stock index rose slightly on Tuesday morning in premarket trading. On Monday, the index recorded a 1 percent gain.Many analysts and investors expect the midterms to provide a tailwind for the stock market if the result is gridlocked government, in part because it implies a lower likelihood of major legislative changes that could affect company valuations.Analysts at Morgan Stanley said on Monday that Republicans taking control of the House or Senate could restrict the spending plans of President Biden and Democrats, potentially lowering Treasury yields and raising stock prices.“The markets prefer a more divided government,” said Eric P. Beiley, the executive managing director of Steward Partners, a wealth management firm. “If the Democrats hold I think you could see markets decline,” he added.But the data on past market performance around the midterms isn’t always so clear.According to Sam Stovall, the chief investment strategist at CFRA, a research firm, the S&P 500 has risen by an average of 0.6 percent the day after midterm results are announced, for data going back to 1970. The largest recent jump came in 2018, when the index rose more than 2 percent after Democrats flipped the House during President Donald J. Trump’s term.However, analysts at the research and indexing firm MSCI looked at the performance of U.S. stocks in the three months before and after midterms since 1978, and found that investors seemed to prefer the status quo — whatever it was at the time — versus a change in control.“The status quo generally translates into continued stability of the policy and economic road map with the reigning political party maintaining similar levels of control in terms of achieving its mandate,” the MSCI analysts wrote.Taking a longer view, Megan Horneman, the chief investment officer at Verdence Capital Advisors, noted that of the potential outcomes after the midterms — Democrats retain control, Republicans sweep or control of the House and Senate is split — the average annual return of the S&P 500 in each case was over 10 percent, going back to 1929.“The main thing to remember is that the markets tend to rally postelection only because markets don’t like uncertainty,” said Patrick Fruzzetti, a managing director at Rose Advisors. For many investors, it could be that the clarity they are seeking is simply the result, whatever it is. Beyond the potential shifts in the political balance of power, investors are grappling with the effects of high inflation, rising interest rates and recession worries.And there is another potential outcome in the 2022 midterms that officials are increasingly worried about; that some of the results could be contested. But in 2020 when the Trump campaign made false claims of corrupted elections and filed lawsuits, the S&P 500 rose more than 11 percent from when the results were announced through the end of the year. More

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    Why Wall Street Loves Gridlock in Washington

    Stocks tend to rally after midterm elections, historical data shows. They perform even better when voters deliver divided government.“Midterm elections are one of the best historic buy signals.”Brendan Mcdermid/ReutersDivided we rise? It’s become a favorite data point among sell-side Wall Street historians: In the year after every midterm election since 1950, the S&P 500 has gone up, regardless of the party in power.“It’s no exaggeration to say that midterm elections are one of the best historic buy signals for equities we have,” Jim Reid, a markets strategist at Deutsche Bank, wrote in a client note this morning.Even better: Stocks tend to outperform when there’s a divided government. According to LPL Financial, since 1950, the S&P 500 has outperformed (on a 52-week basis) whenever voters produce the power scenario of a split or Republican-controlled Congress and a Democratic president. (The benchmark S&P has climbed 17.5 percent in those years versus an overall average annual return of 12.3 percent.) That combination is looking more likely this morning, with the polls suggesting that the Republicans will most likely take control of the House, while the Senate is a tossup.As always, past performance is no indicator for future gains (or losses). Still, it’s worth examining how politics and investor psychology have tended to influence the markets after midterm elections over the past eight decades.There are two central reasons markets rally after the midterms. First, say the LPL markets strategists Barry Gilbert and Jeffrey Buchbinder, “uncertainty associated with the election is behind us, and markets don’t like uncertainty.” More crucially, investors view the midterms as “something of a course correction from presidential elections.” If the opposing party gains ground, it’s more likely businesses and investors will see greater “prospects of a better policy balance ahead, regardless of who is in the Oval Office.”One result: ambitious tax and government spending increases would be off the table, a scenario that could buoy corporate profits, according to Brian Gardner, the chief Washington policy strategist at Stifel, an investment bank and wealth management firm. A potential drawback? It could open the door to a debt-ceiling standoff, higher odds of a government shutdown and partisan paralysis when it comes to trying to get stuff done — i.e., a fiscal spending plan to lift the country out of a looming recession.The way-too-early winners and losers view: The energy and defense sectors would do well, Gardner says. Big Pharma could also benefit, if Republicans succeed in rolling back Medicare’s ability to negotiate on prescription drug prices, a key pillar of the Inflation Reduction Act. A potential loser is Big Tech, which has critics in both parties.HERE’S WHAT’S HAPPENING Donald Trump drops a hint about 2024. The former president stole the spotlight at a rally in Ohio, telling supporters in a speech for J.D. Vance, the Republican Senate candidate, that he would make “a very big announcement on Nov. 15 at Mar-a-Lago.” The comments fueled speculation that he was gearing up for another White House run.FTT, the digital coin tied to the leading crypto exchange FTX, plunges. The token has lost nearly a quarter of its value in the past day. It is also raising fears about more instability in crypto land, causing drops in Bitcoin, Ether and Solana. Alameda Research, the hedge fund operated by the crypto mogul Sam Bankman-Fried, has big holdings in FTT and Solana.The State of the 2022 Midterm ElectionsElection Day is Tuesday, Nov. 8.Final Landscape: As candidates make their closing arguments, Democrats are bracing for potential losses even in traditionally blue corners of the country as Republicans predict a red wave.The Battle for Congress: With so many races on edge, a range of outcomes is still possible. Nate Cohn, The Times’s chief political analyst, breaks down four possible scenarios.Voting Worries: Even as voting goes smoothly, fear and suspicion hang over the process, exposing the toll former President Donald J. Trump’s falsehoods have taken on American democracy.Nvidia starts selling a China-only chip. The U.S. chip-maker is reportedly selling an alternative to a high-end chip banned from sale in China under new American export restrictions. Meanwhile, Apple’s warning that it would not be able to produce enough iPhones for the holiday season because of Covid-19 lockdowns in China highlights how enmeshed the tech giant is there, even as many of its Western peers are shut out.The owners of Liverpool F.C. put the soccer club up for sale. Goldman Sachs and Morgan Stanley have been hired to sell the franchise, one of the most popular worldwide. The club could sell for far more than the $3 billion that Chelsea fetched this year; Forbes values Liverpool at nearly $4.5 billion.Elizabeth Holmes is denied a new trial. A federal judge that the Theranos founder’s arguments for a new one didn’t introduce any new evidence. Holmes is set to be sentenced on Nov. 18 on four counts of criminal fraud.Activists at COP27 in Egypt.Sean Gallup/Getty ImagesMoney matters dominate COP One of the big questions to emerge so far from COP27: Who is paying for efforts to combat global warming, and is it fair? Here’s what’s happening at the gathering in Sharm el Sheikh, Egypt:The Switzerland plan — pay poorer countries to reduce their carbon emissions, then claim credits toward its own carbon footprint — is drawing scrutiny.Egypt may be hosting a conference dedicated to reducing carbon emissions, but it’s eager to sell fossil fuels to Europe to raise money for its debt-ridden economy.Climate activists are protesting Coke’s sponsorship of COP27, pointing to its increasing use of plastics.A new study by Oxfam said that the world’s 125 wealthiest individuals collectively produce 393 million tons in annual carbon emissions — or 3 million tons each on average.Musk, and the power of one Is Elon Musk’s frenetic management style, which is often punctuated by a daily tweet barrage (including a now-deleted one engaging with a quote from a white nationalist), a sign of genius, or an indication that he’s in over his head? Yesterday, the prominent venture capitalist Chris Sacca, an early Twitter investor, spoke on the matter.“One of the biggest risks of wealth/power is no longer having anyone around you who can push back, give candid feedback, suggest alternatives, or just simply let you know you’re wrong,” he wrote.Musk’s management of Twitter has been chaotic. He pushed for a huge round of layoffs, only to ask some of those workers to return. He delayed the rollout of Twitter’s subscription product amid internal pushback. Advertisers have paused their spending. While Musk says Twitter usage is at a record high, others point to potentially troubling data. And just yesterday, he publicly urged independent voters to back Republican candidates in today’s midterm elections.Others are seizing on the moment: The news publisher Axios has promoted its newsletters to potential advertisers as a “well-lit alternative to Twitter,” according to an email to ad buyers obtained by DealBook.Many of his supporters remain in his corner. The investor Ron Baron, an early Tesla investor, told CNBC that the opportunities at Twitter were “gigantic.” Meanwhile, Musk allies in charge at Twitter include his personal lawyer and a crowd nicknamed “Elon’s goons.” Sacca was unimpressed: “I’ve recently watched those around him become increasingly sycophantic and opportunistic.”Sacca sees a corollary in Travis Kalanick, Uber’s co-founder. In 2017, Kalanick resigned from the ride-hailing company after shareholders revolted over a toxic workplace culture. Other tech founders have been similarly humbled: Musk was fired from PayPal in 2000.To be clear, Sacca isn’t calling for Musk to leave Twitter. “I really want this thing to work,” he tweeted. “The only way I see that happening is if anyone around Elon can speak some truth to power and complement his bold and ambitious instincts with desperately needed nuance.”In fashion, green clashes with antitrustFashion brands are under pressure to go green. But an effort by some big houses to collaborate on sustainability initiatives has put them in the cross hairs of antitrust authorities, with European regulators claiming that some attempts may have resembled collusion, write The Times’s Lizzie Paton and Jenny Gross, and DealBook’s Ephrat Livni.The coronavirus pandemic inspired fashion to rethink its practices. During lockdowns, a group of clothing executives and designers spoke on Zoom about limiting waste, and went on to publish ambitious statements in 2020 on making the industry more environmentally friendly. But those declarations set off alarm bells in Brussels: E.U. antitrust regulators raided unnamed fashion houses in May, stating that the targets may have violated rules against price fixing and created a cartel. (People at several of the companies confirmed they had been contacted. The brands declined to comment, and the E.U. has not publicly identified them.)Many sustainability policies would end up raising prices and reducing quantity, said Hill Wellford, a former antitrust official at the Justice Department now at the law firm Vinson & Elkins. “Multiple client consortiums have called me about making agreements for environmental purposes,” he said, “and I have to say to them, ‘Those are dangerous to do.’”The clash between sustainability and competition policy is hot political fodder. “Congress will increasingly use its oversight powers to scrutinize the institutionalized antitrust violations being committed in the name of E.S.G.,” Senator Tom Cotton, Republican of Arkansas, and others wrote in a Nov. 3 letter to 51 major law firms advising clients on environmental practices. With Republicans likely to win back at least one chamber in the midterm elections, conservative lawmakers are gearing up for more of these kinds of fights.“Inside counsel at major companies who really want to be sustainability leaders see antitrust as their biggest hurdle,” Amelia Miazad, an expert in sustainable capitalism and the founder of the Business in Society Institute at Berkeley Law, told The Times. “Companies cannot continue to produce products for consumers in the future unless they’re able to collaborate.”THE SPEED READ DealsThe actor Matthew McConaughey reportedly may join a potential bid by Jeff Bezos and Jay-Z for the N.F.L.’s Washington Commanders. (N.Y. Post)Investment losses at Tiger Global’s flagship hedge fund have grown to nearly 55 percent as the firm’s bets on tech companies and on China suffered. (FT)Foxconn will invest $170 million in the electric truck maker Lordstown Motors. (WSJ)SoftBank’s C.E.O., Masayoshi Son, reportedly plans to put an end to his memorably unusual earnings presentations. (WSJ)PolicyThe Justice Department seized Bitcoin once valued at nearly $3.4 billion from a man who pleaded guilty to stealing from the Silk Road online black-market bazaar. (WSJ)Oil companies have called Britain “fiscally unstable” as its government weighs a windfall tax on the industry. (FT)The Supreme Court’s conservative justices signaled that they were open to further limiting the power of federal regulators like the S.E.C. (NYT)Best of the restJohn Tyson, the C.F.O. of the meat processor Tyson Foods, was arrested after he reportedly became intoxicated and fell asleep in the wrong house. (CNBC)British companies have an “appalling” shortfall of women in executive positions, according to new research. (FT)Inside the messy split — Rolexes and handbags held as hostages and more — of Rome’s soccer legend and his estranged wife. (NYT)John Foley, Peloton’s co-founder and former C.E.O., has found his next act: selling custom rugs directly to consumers. (Insider)Evelyn de Rothschild, who helped unite branches of his family’s banking dynasty and advised the British government and Queen Elizabeth II, has died. He was 91. (Bloomberg)Thanks for reading! We’ll see you tomorrow.We’d like your feedback. Please email thoughts and suggestions to dealbook@nytimes.com. More