Dem Hinojosa Ousts Abbott in Texas, Johnson Exits GOP Leadership, DSA Gains Ground: AM Update 11/5

(upbeat music) - Good morning, everyone. I'm Emily Doshinsky, host of Afterparty and the Megan Kelly Wrapup Show on Series XM, Channel 111. It's Thursday, November 5th, 2026, and this is your AM update. - Progressive politics is associated with culture wars, and I have no interest in fighting culture wars at this time. - Democrat Gina Hanna Hosa making history in Texas. A closer look at the incoming governor's progressive record and populist promises. House Speaker Mike Johnson stepping aside from Republican leadership after the GOP's crushing midterm defeat as a battle to replace him takes shape. - All of these things now are in the mainstream. We're actually having conversations about socialism, about capitalism. - Democratic socialists making major gains in Congress as their growing influence sets up a potential showdown with House Democrat leader, Hawkeme Jeffries. - And Wall Street surges following Democrats sweeping midterm victories as investors embrace divided government. 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Save 45 bucks right now with promo code MK at urgentcarekit.com/MK. That's urgentcarekit.com/MK. promo code MK. (upbeat music) - Democrat Gina Hinojosa making history in Texas, defeating three term Republican governor Greg Abbott to become the state's first Latina governor and end more than three decades of Republican control of the governor's mansion. The 52 year old state lawmaker becoming the first Democrat elected governor since Ann Richards won the office in 1990, denying Abbott in unprecedented fourth term. According to NBC News, Hinojosa capturing 52.8% of the vote to Abbott's 45.7%, a margin of more than 705,000 votes as of yesterday afternoon. It's a remarkable reversal in a state president Trump carried by nearly 14 points just two years ago. A particularly significant shift taking place in the heavily Latino Rio Grande Valley where Republicans made major gains during the last several election cycles. Hinojosa winning back several border counties that supported President Trump in 2024, including Hidalgo, Star and Zapata counties. Democrat strategist Chuck Rocha pointing to the changing political attitudes of Latino voters during an appearance on CBS Morning's Wednesday. - The Hispanic vote is really what the difference is here. We've been covering on this network and others, the dramatic move to the ride over the last few cycles, especially in places like Miami-Dade or the Texas Valley. Last night for the first time in the history of me running campaigns, I saw a snapback quicker than I have. Sometimes voters, soccer moms move around. Well, the Latino voter is now the new soccer mom. They don't know which party they belong to, but they know that they're mad. - And why are they so mad? - They're mad about cost corruption. Made over 200 ads in Spanish this year in 20 congressional races that have heavy Latino population. The number one issue in every poll that we did in Spanish was about the cost of living and how hard it is to get by. - A former civil rights and labor attorney Hinojosa growing up in South Texas before eventually moving to Austin, where she served on a local school board and later became its president. First elected to the Texas House in 2016, she has spent the last decade representing a heavily Democrat district in Austin, building much of her legislative career around public education. According to the Texas Tribune, Hinojosa serves as vice chair of the Texas legislative progressive caucus and Rice University political scientist Mark Jones has consistently ranked her among the most liberal members of the state house. During her campaign for governor, however, Hinojosa distancing herself from the progressive label, instead describing her political philosophy as economic populism, here in October interview with The New York Times. - Progressive politics is associated with culture wars and I have no interest in fighting culture wars at this time, who it doesn't meet the political moment of our time. It is not what 2026 is about. Look, we are facing almost existential crisis in this country because tech giants are having their way with us, like there is one fight and we are so caught up in fighting each other in a divided nation, fighting each other over the ways we disagree about social issues and culture wars that we're all about to lose. And so I'm not gonna perpetuate that anymore. - That message helping Hinojosa appeal to voters beyond the Democrat base, although many of her policy positions remain consistent with the party's liberal wing. During her time in the Texas House, Hinojosa voted against legislation banning gender transition medical treatments for minors, along with a separate measure, restricting access to bathrooms and locker rooms and government buildings based on biological sex. On immigration, Hinojosa opposing two major Republican-backed enforcement laws during her time in the state legislature. She voted against a 2017 law requiring greater cooperation between local law enforcement and federal immigration authorities and opposed a separate 2023 measure, making a legal entry into Texas a state crime. During a recent interview, Hinojosa declining to endorse calls to abolish ICE, but criticizing the agency's enforcement operations and arguing that long time undocumented immigrants who obey the law should have a pathway to legal status. Education becoming another central issue in her campaign. Hinojosa opposing Abbott's $1 billion private school voucher program, which allows qualifying families to use taxpayer-funded education savings accounts toward private schooling and other approved educational expenses. Hinojosa's economic platform, including another ambitious proposal, direct payments of $1,500 to Texas households. My money in your pocket plan is first $1,500 for every Texas household. That is money we already have in a savings account, $27 billion we've never had so much money in that savings account. I would take it back down to what's been historically $10 billion and send the rest back to the people of Texas, which amounts to $1,500 for every Texas household. The Texas Tribune reporting that the plan would require approval from two-thirds of state lawmakers in both chambers, meaning Hinojosa would need Republican support to deliver on that promise. Hinojosa taking aim at the rapid expansion of AI data centers as well, proposing a moratorium on new construction until lawmakers establish additional protections for local communities and natural resources. House Speaker Mike Johnson deciding not to seek the Republican minority leader position, stepping aside from party leadership, following the GOP's devastating midterm losses. Speaker Johnson informing his staff of the decision yesterday morning, just hours after Democrat secured control of the House in a sweeping election victory. NBC News now projecting Democrats will hold 258 house seats to Republicans 177, giving the incoming majority an 81 seat advantage. Speaker Johnson's decision ending a three-year tenure atop the House Republican conference, which began in October 2023, after the historic ouster of then-speaker Kevin McCarthy. The Louisiana Republican becoming the compromised candidate after weeks of infighting, eventually securing the gavel despite having relatively little leadership experience. Speaker Johnson going on to develop a close relationship with President Trump, helping advance the administration's legislative priorities while managing one of the narrowest house majorities in modern history. Throughout the midterm campaign, Speaker Johnson repeatedly predicting Republicans would defy expectations and retain control of the chamber. Instead, the party suffering major losses across the country, prompting calls for a change in Republican leadership. Speaker Johnson winning reelection to his Louisiana congressional seat and expected to remain in a house when the new Congress convenes in January. Two prominent Republicans now competing to replace him, House Majority Leader Steve Scalice of Louisiana and Judiciary Committee Chairman Jim Jordan of Ohio. Scalice previously serving as minority whip from 2019 through 2022 before becoming Majority Leader when Republicans regained control of the House in 2023. A close ally of Speaker Johnson, Scalice spending years building relationships across the Republican conference. Jordan, a founding member of the conservative House Freedom Caucus, drank much of his support from the party's right flank. The two previously facing off for the speakership following McCarthy's removal in 2023, Scalice winning the nomination in an internal vote before withdrawing after failing to secure enough support to win on the House floor. Jordan subsequently failing to win the speakership in three floor votes, ultimately clearing the way for Speaker Johnson. Now, Jordan formally announcing his latest leadership bid in a letter to Republican colleagues yesterday, arguing the party needs to rethink its strategy After Tuesday's defeat, the Ohio Congressman calling four Republicans to take a more aggressive approach against the incoming Democrat majority while rebuilding public confidence in the party's ability to deliver on its promises. Scalia's positioning himself as an experienced leader capable of unifying the conference and helping Republicans reclaim the majority in 2028. President Trump asked about the contest yesterday. Everybody that we're dealing with, but the speaker was fantastic, the people under him were fantastic, all good people. I guess right now you have two candidates, right? Axios reporting that some House Republicans are demanding a complete overhaul of the leadership team following the election losses. Candidates facing a Friday deadline to enter the races ahead of internal Republican leadership elections scheduled for Tuesday, November 10. Democrats, meanwhile, preparing to nominate New York Congressman Hakim Jeffries as the next speaker. Jeffries yesterday celebrating his party's commanding victory. Mike Johnson was correct. The polls were wrong. It wasn't simply a blue wave. It was an American tsunami. House Democrats have decisively taken back control of the Congress. We will win at least 255 seats if not more once every vote has been tallied. It's a historic majority. Coming up, a record number of Democratic Socialists heading to Congress after ousting longtime incumbents and establishment-backed Democrats, and stocks soar in the wake of the Democrat blue wave. Cozy Earth has been an absolute game-changer in my home, making the bed and the couch infinitely more comfortable, not to mention my PJs. Now the Cozy season is officially here, and the nights are getting cooler. 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Democratic Socialists, celebrating a major expansion of their influence in Congress, as a new wave of far-left candidates heads to Washington following Tuesday's midterm elections. The Associated Press confirming victories for at least six new candidates endorsed by the Democratic Socialists of America or its local chapters, bringing the organization's representation in the House to eight members when the new Congress takes office in January. That's four times its current membership, as Congresswoman Alexandria Ocasio-Cortez of New York, and Rashida Tlaib of Michigan are currently the organization's only two members serving in the House. The victories coming largely and safely Democrat districts, where Socialists challengers spent the primary season defeating longtime incumbents and candidates backed by the party establishment. The DSA operating outside the traditional two-party structure, backing Democrat candidates who support its agenda of fundamentally restructuring American government and the economy. The National Desk outlining the organization's agenda during its election coverage Tuesday night. Just quickly want to run through some of these policies, so we have abolishing the Senate and electoral college, abolishing ICE, abolishing police and prisons, expanding voting, free education, and also rewriting a brand new constitution. The movement's electoral success, particularly evident in New York, were two DSA-backed candidates are heading to Congress after defeating powerful figures in the Democrat establishment. Daria Lisa Avila-Chevalier, winning New York's 13th Congressional District, covering upper Manhattan and portions of the Bronx, following her primary upset of Congressman Adriano Espelot, the chairman of the Congressional Hispanic Caucus. In neighboring Brooklyn and Queens, Democrat State Assemblywoman Claire Valdez, winning the seat being vacated by longtime Congresswoman Nidia Velasquez. In Michigan, Donovan McKinney, winning Detroit's 13th Congressional District, after ousting incumbent Democrat Congressman Shree Thandahar during the primary. McKinney, who received the backing of Congresswoman Rashid Zalib, campaigning on Medicare for All, Universal Child Care, and eliminating corporate contributions to political campaigns. His primary campaign featuring sharp disagreements over Israel has Thandahar, a former DSA member, previously left the organization over its members reaction to Hamas' October 7th terrorist attack. Another long-time incumbent losing to the Socialist Movement in Colorado, where 29-year-old Nailat Kieros defeated Congresswoman Diana Degette in Democrat primary, ending her nearly three decades representing the Denver area. Kieros, a former attorney born in Ethiopia, making opposition to Israel a central issue in her campaign. In Pennsylvania, Democrat State Representative Chris Robb, winning Philadelphia's heavily Democrat Third Congressional District, incoming Congressman arguing that proposals once dismissed as politically unrealistic, are now gaining traction with voters. This is a really important moment in time where there are people who are leading with things that previously were considered non-viable, whether it's Medicare for All or Universal Child Care, social housing, or federal job guarantees. All of these things now are in the mainstream, we're actually having conversations about socialism, about capitalism, all the things that were on the sideline because corporate media and other institutions issue those types of conversations. The Socialist Movement securing another victory in California, where the Associated Press is projecting Angela Gonzalez Torres as the winner of the state's 34th Congressional District. Gonzalez Torres defeating incumbent Democrat Jimmy Gomez in an election featuring two candidates from the same party, following an endorsement from the DSA's Los Angeles chapter. In Michigan, progressive activist William Lawrence defeating Republican Congressman Tom Barrett in the state's competitive 7th Congressional District. Lawrence distanced himself from his past membership with the DSA during the campaign, allowing his membership to lapse in July, arguing that ideological labels divide voters. Now, the growing Socialist faction could become a new source of conflict for Jeffries, who is preparing to become the first Black Speaker of the House following Democrats sweeping midterm victories. According to NPR, none of the incoming lawmakers elected with DSA endorsements has publicly committed to supporting Jeffries for Speaker. Wall Street surging yesterday in the wake of Democrats sweeping midterm victories, as investors assess what the election results could mean for the economy and President Trump's agenda. The Dow Jones industrial average jumping nearly 1,600 points, closing more than 3 percent higher in its strongest performance since April of last year. The broader S&P 500 gaining nearly 1.6 percent, while the tech-heavy Nasdaq climbed 1.4 percent. Wall Street now preparing for a dramatically different political landscape in Washington, as Democrats take control of both chambers of Congress for the final two years of President Trump's administration. Bloomberg Equity's reporter Matthew Griffin explaining why investors have traditionally viewed divided government favorably. President Donald Trump will still have a veto. He clearly plans to use it. And so that means that the legislative outcome of even a blue wave here may not be that different than a narrow victory or a divided Congress. And that means investors don't have to worry as much about policy. That means that they can focus on corporate fundamentals on the economy, which are strong markets love gridlock that's something I had heard repeatedly leading up to the vote. You also have treasuries catching that bid potentially expectations for lower government spending are feeding in there that can support the equity market. The election results producing winners and losers across Wall Street. According to the Associated Press, healthcare companies and discount retailers posting some of the strongest gains as investors anticipate Democrats could push to reverse cuts to healthcare and food assistance programs. Renewable energy companies rallying on expectations of greater support from Congress, while some defense contractors and artificial intelligence businesses suffered losses. Investors anticipating tougher scrutiny of the rapidly expanding AI industry, particularly the construction of massive data centers that consume enormous amounts of electricity. Companies closely associated with President Trump and Elon Musk facing significant losses. Shares of Trump median technology group, the parent company of True Social plunging more than 23 percent, while Tesla stock falling 2.6 percent. Beyond the political shakeup is sharp decline in oil prices helping lift the broader market. Brent crude, the international benchmark, dropping nearly 9 percent to just under 95 dollars a barrel. That'll do it for your AM update. I'm Emily Chishinsky host of Afterparty. Go on check out more at AfterpartyEmily.com, catch the Making Kelly Show later today, live on Series XM's the Making Kelly Channel 111 at Noon East on YouTube.com/MakingKelly and all podcast platforms.