By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- Wall Street was poised for a stronger
start on Wednesday, with stock futures gaining after Republicans
retook control of the Senate after numerous victories in midterm
elections.
Futures for the Dow Jones Industrial Average (DJZ4) rose 59
points, or 0.3%, to 17,364, while those for the S&P 500 index
(SPZ4) gained 7.8 points, or 0.4%, to 2,013.30. Technology stocks
were pointing to an even brighter start, with futures for the
Nasdaq-100 index (NDZ4) adding 21.75 points, or 0.5%, to
4,165.25.
"I think the [fact the] market has taken the news of the
Republicans victory so positively could be down to their policies,
for example for businesses, which the market believes will aid
them," said Sam Fox, financial sales trader at SpreadEx, in emailed
comments.
"As U.S. markets are extremely strong at the minute, any
positive news is fueling the rally, which can be clearly seen by
looking at the futures this morning," he said.
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 nearly 2%. Republicans are expected to be
tougher on the Federal Reserve and so-called loose monetary
policies.
Payroll data, Fed speakers ahead: Private-sector payroll data is
due for release at 8:15 a.m. Eastern Time. Economists expect
payroll firm ADP to report employers added more than 200,000 jobs
in October, the seventh straight month. The data will be closely
watched ahead of Friday's key nonfarm payroll data.
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. 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: Time Warner Inc. (TWX) is due to release
results ahead of the opening bell.
Later on Wednesday, Tesla Motors Inc. (TSLA) will report. What
to expect from Tesla earnings
Shares of Activision Blizzard Inc. (ATVI) could see pressure
after posting a weaker-than-expected outlook for the fourth quarter
in late trading Tuesday.
TripAdvisor Inc. (TRIP) was down 12% in thin premarket trading
after its third-quarter results disappointed. And FireEye Inc.
(FEYE) tumbled 20% in late trading after the company missed sales
forecasts for the third quarter.
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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