By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- After signs U.S. stocks would open
decidedly higher on Wednesday, markets took a more cautious turn,
as post-election optimism succumbed to data that showed the service
sector has been growing at a somewhat slower pace.
Both the S&P 500 and the Dow Jones Industrial Average
retreated from session highs, while the Nasdaq was up modestly
.
Ahead of the regular market open, investors welcomed the results
of midterm elections in which Republicans, who are generally viewed
as more business-friendly, regained control of the Senate. However,
stocks were heading south after mixed economic data.
The S&P 500 (SPX) was slightly higher, with utilities and
consumer staples sector stocks leading gains, which implies that
investors are being cautious and defensive.
The Dow Jones Industrial Average (DJI) hit an intraday record
shortly after the open, but has retreated from that level.
The Nasdaq Composite (RIXF) had been drifting in and out of
negative territory.
In economic news, ADP showed the private sector added 230,000
jobs last month, exceeding consensus forecasts. It is the sixth
month in seven that private-sector hiring has topped 200,000.
Separately, ISM services index fell to 57.1% in October from
58.6% in September.
Read: A breakdown of how the market performs after midterm
elections.
By midnight Eastern time, Republican candidates had snared seven
seats in key battleground states. By taking the Senate and keeping
the House, the GOP takes control of Congress for the first time in
eight years. See: The surprises that defined Republicans' very good
Election Day
The dollar(USDJPY) shot to a seven-year high against the yen in
wake of those election results. As the dollar surged, gold
prices(GCZ4) tumbled about 2%, and silver (SIZ4) sank nearly 4%.
Republicans are expected to be tougher on the Federal Reserve and
so-called loose monetary policies.
Payroll data, Fed speakers ahead: Private-sector hiring slightly
picked up in October, as employers added 230,000 jobs, ADP reported
Wednesday. The reading can influence market expectations for
Friday's key monthly jobs report.
The Institute for Supply Management's nonmanufacturing survey
for October will be released at 10 a.m. Eastern.
Minneapolis Fed President Narayana Kocherlakota, a voting member
of the Fed policy committee this year, will give a speech on
"clarifying the objectives of monetary policy" in Virginia, Minn.
at 9:15 a.m. Eastern time. Richmond Fed President Jeffrey Lacker
will give a speak on 'Committing to Financial Stability" at a
conference at George Washington University at 9:30 a.m. Eastern. He
becomes a voting member next year.
Boston Fed President Eric Rosengren, not a voting member, will
give a speech at the Global Banking Standards and Regulatory and
Supervisory Priorities in Lima, Peru at 10 a.m. Eastern.
Stocks to Watch: Mondelez International Inc (MDLZ) surged after
the packaged-food company beat estimates for the third-quarter
earnings.
EOG Resources (EOG) jumped after the oil and gas company beat
earnings and revenue forecasts and raised its full-year production
outlook.
Time Warner Inc. (TWX) shares climbed after its sales and
earnings beat forecasts.
Later on Wednesday, Tesla Motors Inc. (TSLA) will report, and
shares were up 1.1% ahead of those results. What to expect from
Tesla earnings
Shares of Activision Blizzard Inc. (ATVI) rose after the group
posted a weaker-than-expected outlook for the fourth quarter in
late trading Tuesday, but earnings beat forecasts.
TripAdvisor Inc. (TRIP) slid after its third-quarter results
disappointed.
FireEye Inc. (FEYE) tumbled after the company missed sales
forecasts for the third quarter.
(Read more about the day's notable stocks in Movers &
Shakers column:
http://www.marketwatch.com/storyno-meta-for-guid.)
Commodities under pressure: While gold fell, there was also no
letup for oil prices, with WTI crude(CLZ4) down another 40 cents.
U.S. stocks finished a choppy session lower on Tuesday, dragged by
steep losses for energy companies.
Europe stocks caught a tailwind from higher U.S. stock futures.
In Asia, stocks generally fell, outside of a 0.4% gain for the
Nikkei 225 index .
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