Stocks rose solidly on Wednesday, Nov. 7, as investors reacted to the Democrats taking back control of the House of Representatives for the first time since since 2010, a result that could potentially frustrate key economic initiatives from Donald Trump.
The outcome of the midterms played out as many experts expected: Democrats won a majority of seats in the House of Representatives while Republicans retained control in the Senate. Democratic gains in the House were fueled by a wave of voter dissatisfaction with Donald Trump despite his record on jobs, the economy and the broader financial markets.
Midterm Elections: Five Ways a Democratic House Will Challenge President Trump Stocks Will Surge After Midterm Elections (If History Is Any Guide) Jim Cramer: As Election Bets Unwind, We Could See the Bulls in ActionThe Dow Jones Industrial Average rose 545 points, or 2.1%, to 26,180, the S&P 500 was up 2.1%, and the Nasdaq surged 2.6%.
Anadarko Petroleum Corp. (APC) was rose 6% after a measure in Colorado that would have required all new oil and gas wells to be a minimum of 2,500 feet - about half a mile - from occupied buildings and "vulnerable areas," such as parks and irrigation canals, was defeated.
"Now that Proposition 112 is behind us, I expect Anadarko's significant free cash flow generation and oily production mix to regain favor in the market," said Jeff Marks, the senior portfolio analyst for Jim Cramer's Action Alerts PLUS charitable trust, which owns Anadarko.
How the 2018 Midterm Elections Will Affect the Energy IndustryThe Federal Reserve begins a two-day meeting on Wednesday and most economists don't expect the central bank to lift interest rates for a fourth time this year until December. An announcement from the Fed is expected at 2 p.m. ET on Thursday, Nov. 8.
Shares of Advanced Micro Devices Inc. (AMD) rose 5.6% on Wednesday after jumping nearly 4% during the previous session following an announcement from the chipmaker that Amazon.com Inc.'s (AMZN) Amazon Web Services was launching three cloud computing instances that use AMD's Epyc server CPUs, rather than Xeon CPUs from Intel Corp. (INTC) .
AMD's Lisa Su Talks to TheStreet About Her Company's New Partnership with AmazonTwilio Inc. (TWLO) jumped 36% Wednesday after the cloud communications company topped Wall Street's third-quarter earnings forecasts and boosted its sales guidance following its $2 billion takeover of email technology company SendGrid Inc. (SEND) .
Twilio Surges After Solid Q4 Sales Guidance as WhatsApp, Uber Deals Drive Growth Twilio Stock Is a Beast!Humana Inc. (HUM) reported Wednesday third-quarter adjusted earnings of $4.58 a share, beating forecasts of $4.27. The health insurer also raised its adjusted earnings guidance for 2018 to about $14.40 a share, up from previous guidance of about $14.15. Shares rose 7%.
Michael Kors Holdings Ltd. (KORS) posted fiscal second-quarter adjusted earnings of $1.27 a share, 17 cents above estimates, but the stock sank 15% after sales of $1.25 billion came up shy of estimates. The company also said it expects fiscal 2019 revenue of $5.13 billion, which is below forecasts of $5.14 billion, and earnings of $4.95 to $5.05 a share vs. estimates of $5.03.
Michael Kors Tumbles as Revenue Misses ExpectationsShares of Dish Network Corp. (DISH) rose 2% despite the cable network company reporting a drop in quarterly revenue and a significant decline in subscribers.
Earnings reports were expected Wednesday after the closing bell from Qualcomm Inc. (QCOM) , Square Inc. (SQ) , Roku Inc. (ROKU) and Wynn Resorts Ltd. (WYNN) .
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