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US stock futures edged higher on Wednesday after Democrats won control of both chambers of Congress in a seismic midterm election, paving the way for a divided government.
Futures on the Dow Jones Industrial Average (YM=F) rose 0.6%, while those on the S&P 500 (ES=F) climbed 0.2%. Contracts for the Nasdaq-100 (NQ=F) went just above the flatline.
AMD (AMD) stock rose 6% in premarket trading after the company posted a Q3 earnings beat.
Markets swiftly repriced a Democratic sweep of the House and Senate — and the potential for ballot measures and newly elected officials to restrict data center construction. Chip stocks, including Nvidia (NVDA) and Micron (MU), fell more than 1%. Investors will also be watching for actions on housing and pharmaceuticals in the aftermath of the election.
As Yahoo Finance’s Jared Blikre pointed out on Tuesday, midterm elections have a history of shaping stock performance in the near term but don’t move markets much over the long term.
The economic calendar for Wednesday features S&P and ISM data on economic activity indexes, while ADP’s private payrolls will offer a glimpse at the state of the “low hire, low fire” labor market.
Earnings reports from Arm Holdings (ARM), McDonald’s (MCD), Qualcomm (QCOM), Novo Nordisk (NVO), and Uber Technologies (UBER), and more, meanwhile, offer alternative data points on the health of the consumer and AI demand.
LIVE 1 update
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Good morning. Here’s what’s happening today.
Economic data: MBA mortgage applications, week ended Oct. 30 (+3.4% prior); ADP employment change, October (+70,000 expected, +90,000 prior); S&P Global US services PMI, October final reading (57.9 prior); S&P Global US composite PMI, October final reading (57.6 prior); ISM services index, October (54.7 expected, 54.9 prior); ISM services new orders, October (75 expected, 74 prior); ISM services new orders, October (58.8 expected, 59.8 prior); ISM services employment, October (50 expected, 50.1 prior)
Earnings calendar: Arm Holdings (ARM), McDonald’s (MCD), QUALCOMM (QCOM), Novo Nordisk (NVO), Uber Technologies (UBER), McKesson Corporation (MCK), CVS Health (CVS), Emerson Electric (EMR), Datadog (DDOG), MercadoLibre (MELI), Motorola Solutions (MSI), Manulife Financial Corporation (MFC), The Allstate Corporation (ALL), MetLife (MET), Kraft Heinz (KHC)
Catch up on some other top stories from overnight:
Gold rises as dollar weakens; Democrats score early wins in US midterm elections
Asian shares fall on selling of tech shares as markets watch for results of US midterm elections
Duolingo stock jumps on user growth, upbeat guidance
Bettors vs. pollsters: The midterm showdown
AMD’s data center sales nearly double, topping Wall Street’s forecast
