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Wall Street edges higher in thin trading ahead of election results

Reuters 

By Sruthi Shankar

(Reuters) - U.S. stocks rose on Tuesday, as strong earnings and easing of trade tensions lifted materials and industrial sectors, but trading volumes were light as uncertainty about the outcome of U.S. midterm elections kept investors on the sidelines.

Financial markets are bracing for Donald Trump's losing control of the House of Representatives, while retaining the

A political gridlock between the and could hinder Trump's pro-business agenda and raise concerns about political instability, but most analysts say this may not be the worst outcome for the

Many fear that there could be a sharp selloff in the market if the Democrats sweep both the House and the In contrast, stocks may rally on hopes of more tax cuts if Republicans retain control of the House.

"People are trying to figure out how to position for the mid-term election outcome here. The general view is that the outcome is predictable ... the gridlock is somewhat positive and more predictive for markets going forward," said Charlie Ripley, for

"If we see something that deviates, either a Democratic or a Republican sweep, we will see that play out tomorrow and through the rest of the week."

Ten of the 11 sectors were higher, led by a 1 percent gain in the materials index.

Shares of fertilizer company and rose 7 percent and 3.8 percent, respectively, on strong results.

Trade-sensitive industrial sector rose 0.96 percent after Chinese Vice said was ready to hold discussions and work with the to resolve trade disputes.

At 11:58 a.m. EDT the was up 109.57 points, or 0.43 percent, at 25,571.27, the 500 was up 9.14 points, or 0.33 percent, at 2,747.45 and the was up 30.51 points, or 0.42 percent, at 7,359.36.

Among stocks, jumped 15.5 percent after the drugmaker beat analysts' estimates for third-quarter profit.

Pharmacy chain was up about 4.6 percent after its quarterly profit beat analysts' estimates on higher sales of prescription drugs and consumer health and

gained 4.4 percent after the online travel agency forecast a fourth-quarter profit above estimates.

Advancing issues outnumbered decliners by a 1.33-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.37-to-1 ratio on the Nasdaq.

The index recorded 16 new 52-week highs and 1 new lows, while the Nasdaq recorded 35 new highs and 48 new lows.

(Reporting by in Bengaluru; Editing by Anil D'Silva)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, November 06 2018. 23:02 IST
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