Stock futures flat as Wall Street awaits US midterm elections

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, November 7, 2022.

Brendan McDermid | Reuters

Stock futures were flat on Monday evening after a bullish day for markets as investors looked ahead to Tuesday’s US midterm elections.

Futures linked to the Dow Jones Industrial Average rose 12 points, or 0.04%, after erasing earlier gains. S&P 500 and Nasdaq 100 futures were partially lower. Lyft shares are down 13% while those of Take-Two Interactive and Tripadvisor are down more than 15% each after reporting disappointing quarterly results.

The moves come after a day in which all major indicators achieved a second consecutive positive session. The Dow Jones Industrial Average closed up 423.78 points, or 1.31%. Meanwhile, the S&P 500 rose 0.96%, and the Nasdaq Composite rose 0.85%.

Investors await the results of the midterm elections on Tuesday. They will determine which party controls Congress and direct future policy and spending.

Any market reaction will likely depend on whether Republicans regain the House, the Senate, or both.

“The idea that [Republicans are] Going home is pretty much the market’s baked-in, Lauri Calvasina, RBC Capital Markets said on CNBC’s “Fast Money” on Monday. “I’m not saying it wouldn’t be a good thing, we’ve won a few days of feeling good or it won’t provide some stability, but I think for a big player in the S&P they need to get the Senate back as well.”

Wall Street will also keep a close eye on Thursday’s CPI report for the latest data on how much the Fed’s rate hike will affect higher inflation. This reading may also indicate the central bank’s path forward – another hotter than expected report that could encourage the Fed to raise interest rates aggressively in December.

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Earnings season continues this week. Tuesday, Lordstown MotorsAnd the lucid group, Walt Disney And the AMC Entertainment They all report their latest quarterly results.

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