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S&P futures edge lower as investors await U.S. election results


By Noel Randewich

(Reuters) - U.S. stock futures slipped late on Tuesday as investors awaited the results of U.S. midterm congressional elections, with Wall Street hoping for relief following a recent selloff.

In line with opinion polls, Wall Street had been expecting that Donald Trump's would lose control of the of Representatives while retaining the Senate, setting up gridlock in

Earlier in the day, indexes closed higher, helped by gains in and NV after they reported upbeat quarterly earnings, but trading volume was thin as investors held back on making big bets ahead of the vote count.

Kristina Hooper, at in New York, said Tuesday's market gains suggest investors have already priced in expectations the Democrats will take control of the and put a brake on the potential for a new round of tax cuts.

"It seems investors have come to terms with the likelihood of a split Congress," she said.

500 futures were down 0.12 percent at 7:26 pm ET (0026 GMT).

In Tuesday's trading session, the Dow Jones Industrial Average <.DJI> rose 0.68 percent to end at 25,635.01 points, while the 500 <.SPX> gained 0.63 percent to 2,755.45.

The <.IXIC> added 0.64 percent to 7,375.96.

About 6.85 billion shares changed hands on U.S. exchanges compared with the 8.7 billion average for the full session over the last 20 trading days.

Following a steep selloff in October, the 500 remains down more than 5 percent from its record high, with investors worried a decade-old bull market may be ending.

Some investors said they would expect a drop, at least in the near term, if the Democrats gain control of both the and the In contrast, stocks may rally on hopes of more tax cuts if Republicans retain control of the House.

Sweeping corporate tax cuts passed by the Republicans last year have supercharged earnings growth in recent quarters.

Other investors said the elimination of election uncertainty could create a boost either way.

"Once we get through the midterms, stocks usually go up, whatever the result, and you have to be a buyer," said Jason Ware, at Albion Financial in

All of the S&P's 11 major sectors showed gains, led by a 1.5 percent rise in the materials index <.SPLRCM>, which was helped by earnings reports.

The trade-sensitive industrial sector <.SPLRCI> closed up 1.1 percent after Chinese Vice said was ready to hold discussions and work with the to resolve trade disputes.

got a boost from , which jumped 16 percent after the generic drugmaker reported a bigger-than-expected quarterly profit as it sold more products in emerging markets.

Pharmacy chain rose 5.7 percent after its results.

The health sector could be under the spotlight after the election as Trump's efforts to lower prescription drug prices could get more attention should Democrats gain control in

(Additional reporting by Sinead Carew, in and in Bengaluru; Editing by and Diane Craft)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 07 2018. 06:11 IST