The Dow Jones Industrial Average rose on Monday as a busy week began, with the midterm elections for Congress and key inflation data on deck over the next few days.
The Dow was trading up 138 points, or 0.4%, while the S&P 500 was up 0.3%. The Nasdaq Composite Index is up 0.1%.
Apple shares fell more than 1% after the tech company said iPhone production has been temporarily reduced Due to Covid-19 restrictions in China. Meanwhile, Palantir shares fell more than 5% after the company reported disappointing quarterly results.
Meanwhile, Facebook’s parent shares dead More than 3% profit after a The Wall Street Journal Report said that The company could start laying off workers as soon as Wednesday.
Tuesday’s midterm elections will determine which party will dominate Congress, and influence the direction of future spending. Democrats currently control the House of Representatives, and have a majority in the Senate.
Investors can accept a potential stalemate that could come out of the midterm elections because the Democratic president, with a Republican or a divided Congress, has historically meant above-average gains, RBC’s Laurie Calvasina said in a note Monday.
“The market is hoping that some kind of Republican sweep of Congress will lead to the kind of stalemate in Washington, which they see as good, or at least no new spending, which will be good for interest rates and Treasury supply,” Brad said. Conger, Vice President of Information at Hirtle Callaghan & Co.
On the economic front, investors are expecting Thursday’s CPI report to provide more information on the extent to which the Federal Reserve needs to bring down inflation. A hot report for investors could indicate that a pivot from a prolonged period of interest rate hikes may not be imminent.
“[In] In order for the stock and bond markets to match inflation performance after the peak indicated in the table, inflation must continue to decline – and at a faster pace than we have seen so far. Until the Fed signals the “pivot” approaching, things may still be difficult,” Byrd’s Ross Mayfield wrote in a recent note.
Elsewhere, several companies are expected to announce on Monday including Activision BlizzardAnd the Lift And the Take-Two Interactive. interactive. Corporate earnings season ends with the majority of companies in the S&P 500 reporting their results.
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