Yahoo Finance's Rick Newman discusses the change in President Biden's approval rating over the previous few weeks.

Video Transcript

AKIKO FUJITA: It has been a bad week, month, and quarter, quite frankly, for stocks. All this happening as we approach the midterms. Turbulent markets don't usually mean good things for political fortunes. Let's talk about President Biden amid all of this. We've got Yahoo Finance's Rick Newman with this week's Bidenomics. What's the grade, Rick?

RICK NEWMAN: Well, guess what happened in September? The S&P 500 under President Biden actually went negative. It is now down about 3.5% from when he took office in 2021. And that's obviously bad timing for him going into the midterm elections. You know, Akiko, there's less of a correlation between what happens in the stock market and consumer confidence than there is between what happens with gas prices and consumer confidence.

But even so, I've noticed that gas prices have been falling, and President Biden's approval rating has been ticking up a little bit, but not for the last couple of weeks. It actually is back down to around 42%. That is not a good level for Democrats going into the midterm elections. For them to have a good chance to retain control of Congress, I think Biden's approval rating probably needs to be pretty close to 50%. He's not there.

And I think he's got this new problem. He has to explain to people with the stock market doing as poorly as it is in a bear market S&P, down about 25% from its peak in January earlier this year.

AKIKO FUJITA: We're talking about all this in terms of the economic outlook in a week where it has been a lot about natural disasters. We're watching the latest on Hurricane Ian, as it barrels towards South Carolina. Reports there that that has been accelerating as well. Interesting political thread here, too, though, Rick, when you think about this dynamic between President Biden, as well as Florida Governor Rick-- Ron DeSantis, and how that has-- it's kind of led to a bit of playing nights for now.

RICK NEWMAN: Yeah, so DeSantis is trying to become the new face of the Republican Party supplanting Donald Trump. He, of course, is the guy who sent migrants up to Martha's Vineyard on an airplane. And he's been one of the vociferous Biden critics.

But they're getting along for the last couple of days. Biden said he has talked with DeSantis four or five times on the phone. They're not bickering. Biden is-- he has declared a state of emergency for, I think, for Florida and for South-- and for the Carolinas. So that makes it easier to get federal aid down there. And he says we're going to do everything we can.

So they've made nice for the time being. I don't expect it to last. But it's nice to see that the politicians can do what needs to be done when the time says that's what you have to do.

AKIKO FUJITA: Yeah, I mean, certainly, for those who are most affected, the residents in Florida now, potentially South Carolina, I mean, that is kind of the key, right, is, help is needed. Let's hope things-- they do get along, at least to get the rescue efforts underway. Rick Newman, as always, thanks so much for that.

RICK NEWMAN: See ya, Akiko.