Stocks gained momentum on Wednesday as investors focused on the Republican Senate keeping control despite a White House race that is still too close to call, while the Democrats maintain control of the House.
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|I:DJI||DOW JONES AVERAGES||28291.18||+811.15||+2.95%|
|I:COMP||NASDAQ COMPOSITE INDEX||11650.982021||+490.41||+4.39%|
The Dow Jones Industrial Average jumped 700 points or 2.6%, while the S&P 500 rose over 3%.
Health insurance stocks, including Dow member United Health, led the broad rally.
|UNH||UNITEDHEALTH GROUP INCORPORATED||359.37||+37.89||+11.79%|
and the Nasdaq Composite rose 3% and 4% respectively.
Large-cap tech companies, such as Facebook, Alphabet, Twitter and Amazon, may be benefiting from the failure of a Democratic sweep in the House and Senate, which could have prompted tougher regulatory actions, say, investors.
ADP Job Growth Slows
On the economic front, investors shrugged off the ADP employment change for October, which showed a reading of 365,000 jobs added, missing expectations of 650,000 by a wide margin.
Energy is also in focus as West Texas Intermediate crude oil firmed up, gaining nearly 2% to the $38 per barrel level.
Ride-sharing companies Uber and Lyft each rallied more than 10% after Proposition 22 was reversed in California allowing these companies to classify drivers as independent contractors, reducing potential costs.
|UBER||UBER TECHNOLOGIES INC.||40.60||+4.84||+13.54%|
As for the election tally, the odds of a contested election are growing more likely.
The Fox News Decision Desk projects victories for Democratic nominee Joe Biden in Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Massachusetts, Maryland, Minnesota, one of Nebraska’s electoral votes, New Hampshire, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont and Virginia and Washington, as well as the District of Columbia. The former vice president has secured 238 electoral votes.
Meanwhile, President Trump is expected to win Kentucky; West Virginia; Alabama; Mississippi; Tennessee; Missouri; Arkansas; Indiana; Kansas; Louisiana; Oklahoma; Wyoming; North Dakota; South Dakota; South Carolina; Utah; Idaho; Florida; Ohio; Texas; Iowa; Montana; and at least four of Nebraska’s five electoral votes. That represents a total of 213 electoral votes.
At least 270 electoral votes are needed to be declared the winner.
ISM’s Non-Manufacturing index showed continued growth, with a reading of 56.6, though lower the consensus forecast of 57.3 and down slightly from the prior reading of 57.8.
The Energy Information Administration will release its weekly crude oil inventory data at 10:30 a.m.
EARNINGS SEASON CONTINUES
After a brief respite for the presidential election, earnings season is set to resume, with investors hearing from a number of tech companies.
Prior to the market open, hotel operator Hilton Worldwide, Eversource Energy and biotech Genmab are among those that will release their quarterly results.
|MET||METLIFE INC. (METROPOLITAN LIFE INSURANCE COMPANY)||39.94||-0.03||-0.08%|
|ALL||THE ALLSTATE CORPORATION||94.04||+1.14||+1.23%|
After the close of trading, investors will get their latest looks at earnings from semiconductor companies Qualcomm and Qorvo, dating app owner Match Group and insurance companies MetLife and Allstate.
|EXPE||EXPEDIA GROUP, INC.||100.28||+1.48||+1.50%|
Mobile gaming company Zynga, hosting company GoDaddy, and travel services company Expedia Group also report.
In other commodities, gold fell slightly to $1,891 an ounce, down almost 1%.
As the election hangs in the balance, the world is grappling with the worst pandemic in more than a century.
On Monday, the U.S. reported more than 84,000 COVID-19 cases, according to data compiled by Johns Hopkins University. More than 9.3 million Americans have now contracted the virus, resulting in over 232,000 deaths.
Fox News’ Tyler Olson contributed to this story.