US Stocks edge up ahead of midterm elections results

The US stock market finished firmly in positive territory for third straight session on Tuesday, 08 November 2022, as investors awaited the results of the U.S. midterm elections, which could affect future levels of government spending and regulation in the second half of President Joe Biden's term.

At the close of trade, the Dow Jones Industrial Average index advanced 333.83 points, or 1.02%, to 33,160.83. The S&P500 index added 21.31 points, or 0.56%, to 3,828.11. The tech-heavy Nasdaq Composite Index increased 51.68 points, or 0.49%, to 10,616.20.

With a Democrat in the White House, Congress could tip in favor of Republicans in at least one chamber if not two. That creates the conditions for political gridlock, and investors may prefer that if it prevents big policy changes from moving forward. A Republican majority in both chambers could put a check on spending and regulatory priorities by the Biden administration. It could also block the progress of judicial confirmations in the Senate.

Traders also continued to look ahead to Thursday's report on consumer price inflation. The inflation data would give clues about how much the U.S. Federal Reserve's rapid interest rate hikes are helping cool down the economy.

Among individual shares, SolarEdge Technologies was up 19% after reported record $836.7 million revenue in its most recent quarter. Also, the company offered a stronger-than-expected forecast for its fourth quarter gross margins. SolarEdge expects revenue of $870 million and adjusted gross margin between 27% and 30% in the fourth quarter, a strong improvement compared to the 26.5% recorded in the third quarter.

Shares of Kohl's jumped 7% after the department store chain announced that CEO Michelle Gass is leaving for a new opportunity after the retailer came under pressure to shake up its leadership. In a separate release, Levi Strauss & Co. said Gass will join the company in early January as president and step into the role of CEO within the next 18 months, succeeding Chip Bergh. Shares of Levi ended the day down about 3%.

Shares of Lyft dropped nearly 23% after the company reported worse-than-expected revenue of $1.05 billion for the third quarter. For the current quarter, Lyft said it expects to report revenue between $1.15 billion and $1.17 billion.

Video game maker Take-Two Interactive Software Inc shares dropped 14% after it cut its outlook for annual sales.

Among Indian ADR, INFOSYS was up 0.9% at $18.74, Tata Motors added 1.6% to $27.40, HDFC Bank added 1% to $64.95, Wipro added 0.4% to $4.84, ICICI Bank rose 1.4% to $22.93, Azure Power Global added 8.7% to $5.99, and Dr Reddy's Labs added 0.04% to $56.41. WNS Holdings fell 1.2% to $82.09.

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