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Tech troubles brew, Goldman cuts S&P 500 earnings views and investors place their bets ahead of US midterm elections.Trouble continues to br [View in browser]( [Bloomberg]( Tech troubles brew, Goldman cuts S&P 500 earnings views and investors place their bets ahead of US midterm elections. Tech woes Trouble continues to brew for Big Tech. Meta, Facebook’s parent company, plans to [lay off thousands of workers]( potentially as early as Wednesday, the Wall Street Journal reported. Apple expects to produce at least[3 million fewer iPhone 14]( handsets than originally anticipated this year, according to people familiar with its plans. Meanwhile, over at Twitter, management is reaching out to dozens of employees who lost their jobs and [asking them to return](. Earnings outlook Goldman Sachs strategists [lowered earnings estimates](for the S&P 500 Index for each year till 2024. The team noted that margins contraction in the third quarter is the first since the pandemic, which signals more pain ahead, particularly for next year. “We believe S&P 500 margins have inflected downwards and lower our estimates to incorporate greater margin contraction,” strategists including David J Kostin wrote in a note dated Nov. 4. Midterm bets Treasuries are expected to rally if Republicans win control of both the House of Representatives and Senate, according to 43% of 429 market participants polled in the latest [MLIV Pulse survey](. On the other hand, if Democrats hold on to the Senate and the House, 39% of respondents say the dollar will extend its streak of gains. Some investors also believe equities will perform better under a GOP majority in both chambers than maintained control by Democrats or a split Congress. Futures rise US equity futures climbed across the board, with S&P 500 and Nasdaq 100 contracts both rising around 0.3% as of 5:39 a.m. in New York. The dollar pulled back, making the Swedish krona and British pound the biggest gainers among Group-of-10 currencies. Treasuries were little changed along with bond markets globally. Brent crude was steady while WTI fell slightly. Gold was on the backfoot along with Bitcoin. Coming up… At 3 p.m., we’ll get September data on consumer credit. Several Federal Reserve officials are due to speak, including Susan Collins and Loretta Mester at 3:40 p.m. and Tom Barkin at 6 p.m. Earnings include Lyft, Activision Blizzard and Palantir. What we’ve been reading Here’s what caught our eye over the weekend: - Private markets threaten to [wreak havoc](on global stocks and bonds - Seized Russian yachts are [costing taxpayers millionsÂ]( - Were the [preppers right all along](? - [Formula One sponsorships]( from crypto firms are dwindling - How HBO survived the [two worst media mergers]( of the century - Budweiser stocks up for[beer drinking at the World CupÂ]( - Inflation is[straining US voters]( across all incomes And finally, here’s what Joe is interested in this morning Last week was one of the bigger macro weeks in a while, with a Fed decision on Wednesday and the non-farm payrolls report on Friday. The two big events actually fit together pretty well. First, the Fed's message was that it was prepared to step down the pace of rate hikes fairly soon. Powell made it clear that this didn't constitute a "pivot" by indicating that a slower pace would likely coincide with a higher terminal rate. Nonetheless, slowing the pace of tightening gives the economy some time to "catch up" and let disinflationary impulses unfold. As for the jobs report, it was solid, but the unemployment rate did jump to 3.7%. And there are other indications that aggregate wage growth is cooling from very hot levels. So if you're looking for the optimistic scenario, there's probably two things you're looking for. Enough of a disinflationary trend to emerge fast that we get a stepdown by the December meeting. And also, not so much of an economic deceleration that it unravels into a painful recession. Were we to see layoffs gather steam (outside of tech), it's hard to know how far that would go once it got started. Follow Bloomberg's Joe Weisenthal on Twitter [@TheStalwartÂ]( Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. You received this message because you are subscribed to Bloomberg's Five Things - Americas newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](