{"id":73999,"date":"2026-11-02T07:38:20","date_gmt":"2026-11-02T11:38:20","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-vows-to-protect-musk-as-midterm-election-tensions-rise-estee-lauder-surges-on-earnings-beat\/73999\/"},"modified":"2026-11-02T07:38:20","modified_gmt":"2026-11-02T11:38:20","slug":"trump-vows-to-protect-musk-as-midterm-election-tensions-rise-estee-lauder-surges-on-earnings-beat","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-vows-to-protect-musk-as-midterm-election-tensions-rise-estee-lauder-surges-on-earnings-beat\/73999\/","title":{"rendered":"Trump Vows to Protect Musk as Midterm Election Tensions Rise; Est\u00e9e Lauder Surges on Earnings Beat"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>President Trump pledged to protect Elon Musk<\/strong> and his aerospace company, <strong>SpaceX<\/strong>, from potential Democratic-led investigations if the opposition gains control of Congress in the upcoming midterms.<\/li>\n<li><strong>Est\u00e9e Lauder (<a href=\"\/stock\/EL\">EL<\/a>) shares are set for a boost<\/strong> after the company reported a massive Q1 earnings beat, with <strong>adjusted EPS of $0.72<\/strong> (vs. $0.51 estimate) and raised its full-year fiscal 2027 outlook.<\/li>\n<li><strong>Trump warned of a &quot;Mr. Veto&quot; era<\/strong>, stating he will veto &quot;everything&quot; passed by a Democratic-controlled House or Senate to prevent them from &quot;ruining&quot; his administration&#39;s progress.<\/li>\n<li><strong>Loews Corporation (<a href=\"\/stock\/L\">L<\/a>) reported a 39% decline in net income<\/strong> for Q3 2026, primarily due to a <strong>$125 million after-tax charge<\/strong> at its subsidiary, CNA Financial, though revenue rose slightly to <strong>$4.76 billion<\/strong>.<\/li>\n<li><strong>China is moving to ease foreign exchange rules<\/strong> for current account transactions, a strategic shift aimed at facilitating trade settlement and cross-border investment.<\/li>\n<\/ul>\n<h2>Trump Defends Musk and Warns of Legislative Gridlock<\/h2>\n<p>President Donald Trump has positioned himself as a primary defender of Elon Musk, stating that the U.S. has an &quot;obligation to protect our geniuses&quot; if <strong>SpaceX<\/strong> faces regulatory or legislative risks from Democrats. These comments come as Democratic lawmakers reportedly weigh investigations into Musk\u2019s business empire ahead of the November 3, 2026, midterm elections. Trump emphasized that Musk has &quot;done nothing wrong&quot; and characterized him as a critical national asset that must be shielded from political targeting.<\/p>\n<p>Simultaneously, the President has adopted a combative stance regarding the potential for a divided government. Trump declared he would become <strong>&quot;Mr. Veto&quot;<\/strong> if Democrats win control of Congress, vowing to block all legislation sent to his desk. While he admitted this could lead to a temporary standstill, he suggested that after a &quot;month or two&quot; of rejected bills, Democrats would be forced to &quot;come over and make a deal.&quot;<\/p>\n<h2>Est\u00e9e Lauder Outperforms on Fragrance Strength<\/h2>\n<p>The Est\u00e9e Lauder Companies (<a href=\"\/stock\/EL\">EL<\/a>) delivered a robust first-quarter performance for fiscal 2027, significantly exceeding Wall Street expectations. The beauty giant reported <strong>net sales of $3.72 billion<\/strong>, a 7% year-over-year increase, driven by a <strong>20% surge in fragrance sales<\/strong> and strong demand in the Asia\/Pacific region. The company\u2019s &quot;Beauty Reimagined&quot; strategic vision appears to be yielding results, with adjusted EPS more than doubling from the previous year.<\/p>\n<p>Following the strong start, management raised its <strong>fiscal 2027 full-year outlook<\/strong>. The company now expects adjusted EPS between <strong>$3.20 and $3.45<\/strong>, up from the prior range of $3.10 to $3.35. Organic net sales growth is now projected at <strong>4% to 5.5%<\/strong>, reflecting increased confidence in brand desirability and operational agility despite ongoing macroeconomic uncertainties.<\/p>\n<h2>Loews Impacted by Insurance Reserve Charges<\/h2>\n<p>Loews Corporation (<a href=\"\/stock\/L\">L<\/a>) saw its third-quarter net income fall to <strong>$306 million ($1.50 per share)<\/strong>, down from $504 million ($2.43 per share) in the prior year. The decline was largely attributed to an unfavorable <strong>$125 million charge<\/strong> at CNA Financial (<a href=\"\/stock\/CNA\">CNA<\/a>) related to long-term care reserve updates. Higher catastrophe losses also weighed on the insurance segment\u2019s underwriting results, pushing the combined ratio to 97.0%.<\/p>\n<p>Despite the earnings hit, Loews reported a slight revenue increase to <strong>$4.76 billion<\/strong>. Performance at <strong>Loews Hotels<\/strong> provided a partial offset, with net income rising due to higher average daily rates and increased occupancy. Management noted that the reserve charge at CNA is expected to be mitigated over time by higher investment yields from recent portfolio adjustments.<\/p>\n<h2>China Proposes Easing Foreign Exchange Restrictions<\/h2>\n<p>In a move to bolster its international trade position, China\u2019s State Administration of Foreign Exchange (SAFE) has proposed easing rules for <strong>current account transactions<\/strong>. The initiative is designed to simplify trade settlements and optimize currency management for cross-border business. This follows a record year in 2025, where China\u2019s current-account transaction volume exceeded <strong>$8 trillion<\/strong>.<\/p>\n<p>The proposed changes include expanding a pilot program that allows securities firms to handle foreign-exchange settlements and sales. This regulatory shift is part of a broader &quot;high-level financial opening-up&quot; strategy intended to attract more foreign institutions and long-term capital to the Chinese market while managing exchange-rate risks for small and midsize enterprises.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways President Trump pledged to protect Elon Musk and his aerospace company, SpaceX, from potential Democratic-led investigations if the 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