Dow opens week higher as investors await midterm elections and inflation report

The Dow Jones Industrial Average rose Monday, kicking off a packed week with congressional midterm elections and key inflation data over the next few days.

The Dow was up 210 points (0.7%) and the S&P 500 was up 0.3%. The Nasdaq Composite rose 0.1%.

Apple shares fell more than 1% after the company said iPhone production was temporarily reduced due to Covid-19 restrictions in China. Meanwhile, Palantir’s share price fell more than 9% after the company posted disappointing quarterly results. Carvana fell 11% after his more than 20% decline.

Facebook’s parent company Meta has posted a profit of more than 5% after the Wall Street Journal reported that the company could begin layoffs as early as Wednesday. McDonald’s is trading at an all-time high, up about 1%.

Tuesday’s midterm elections will determine which party controls Congress and influence the direction of future spending. Democrats now control the House and hold a majority in the Senate.

RBC’s Lori Calvasina said in a note Monday that investors could acknowledge the potential turmoil stemming from the midterm elections, as Democratic presidents have historically meant above-average earnings in Republicans or split Congresses. have a nature

“The market is expecting Republicans to sweep Congress and get into a kind of stalemate in Washington, or at least no new spending,” Mr. Brad said. His Conger, Deputy CIO of Hirtle Callaghan & Co, said:

On the economic front, investors expect Thursday’s consumer price index report to give more insight into how far the Federal Reserve needs to go to keep inflation down. A featured report could let investors know that a pivot from a long period of high interest rates may not be imminent.

“[In] Inflation must continue to fall for the stock and bond markets to match the post-peak inflation rates shown in the table. Things could remain bleak until the Federal Reserve indicates a ‘pivot’ is coming,” Baird’s Ross Mayfield wrote in a recent memo.

Elsewhere, several companies are due to report on Monday. activision blizzard, lift When take-two interactiveWith most companies in the S&P 500 reporting results, corporate earnings season is coming to an end.

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