Wall Street gains as investors look to midterm elections

“There’s still in people’s minds the idea that there could be a surprise. Most people are waiting to see what the results are before they make any major investment decisions.”

Loading

The Dow Jones Industrial Average rose 173.31 points, or 0.68 per cent, to 25,635.01, the S&P 500 gained 17.14 points, or 0.63 per cent, to 2,755.45 and the Nasdaq Composite added 47.11 points, or 0.64 per cent, to 7,375.96.

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

Some investors said they would expect a sharp selloff, at least in the near term, if the Democrats gain control of both the House and the Senate. In contrast, stocks may rally on hopes of more tax cuts if Republicans retain control of the House. Others hoped that the elimination of election uncertainty would create a boost either way.

“What I’ve noticed over the last couple of weeks is people (are) back in the market. Once we get through the midterms, stocks usually go up, whatever the result, and you have to be a buyer,” said Jason Ware, chief investment officer at Albion Financial in Utah.

All of the S&P’s 11 major sectors showed gains, led by a 1.5 per cent rise in the materials index, which was helped by earnings reports.

Shares of fertilizer company Mosaic Co rose 10.6 per cent and building materials producer Martin Marietta Materials Inc gained 8.4 per cent after strong results.

The trade-sensitive industrial sector closed up 1.1 per cent after Chinese Vice President Wang Qishan said Beijing was ready to hold discussions and work with the United States to resolve trade disputes.

“Outside of midterms, which have been priced in, we’ve seen some general sign

Read More Here...

Bookmark the permalink.