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Wall Street inches higher ahead of U.S. 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 there could be a sharp selloff in shares 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 1.34 percent gain in the materials index.

Shares of fertiliser company rose 7.7 gained 6.8 percent after strong results.

Trade-sensitive industrial sector <.SPLRCI> rose 1.04 percent after Chinese Vice said was ready to hold discussions and work with the to resolve trade disputes.

Tariffs and interest rates pose the biggest threat to stocks in the next six months, Investment Advisors Chairman said.

"I do not want to see a tariff war, that would be bad for the and the market. It would diminish some of the effect of high corporate earnings," Morgan said.

At 13:06 a.m. EDT the <.DJI> was up 141.44 points, or 0.56 percent, at 25,603.14, the 500 <.SPX> was up 13.93 points, or 0.51 percent, at 2,752.24 and the Composite <.IXIC> was up 49.99 points, or 0.68 percent, at 7,378.84.

got a boost from a 17.6 percent jump in and 4.3 percent rise in after their results.

The sector will be under the spotlight, as efforts to lower prescription drug prices that have started under Trump could get more attention should Democrats gain control in

Advancing issues outnumbered decliners by a 1.65-to-1 ratio on the NYSE and by a 1.78-to-1 ratio on the

The index recorded 17 new 52-week highs and one new lows, while the recorded 39 new highs and 53 new lows.

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

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

First Published: Wed, November 07 2018. 00:07 IST
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