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Stocks end higher as investors eye U.S. midterms
STORY: U.S. stocks rose for a third straight session on Tuesday as Americans voted in midterm elections that will determine control of Congress, with investors betting on a political stalemate that could prevent major policy changes.The Dow ended a percent higher, while the S&P 500 and Nasdaq each finished up about half a percent.Dryden Pence, chief investment officer at Pence Capital, said the outcome of Tuesday’s elections could be a positive catalyst for stocks but it may be short-lived.”Historically you see about an 8% or 9% positive off an election in a midterm year. Midterm years are usually bumpy all the up to the election and then you take off to the end of the year, on average, you get about an 8% recovery. So that’s an initial catalyst… But then we have a big issue happening on the 10th, which is the next inflation print… And I think that you could have positive news today with the election in some cases but then negative news two days from now saying inflation is still running too hot. So I think there’s a lot of uncertainty around this because that inflation number is going to drive the Fed as we go forward.”Shares of drugmaker Amgen rallied to a record high on Tuesday after the company reported positive data related to its cholesterol drug and obesity treatment. Shares of Kohl’s jumped after an announcement saying CEO Michelle Gass is leaving for the top job at Levi Strauss amid renewed calls from activist investors for a management shakeup at the struggling department store chain.Shares of Take-Two Interactive slumped after the video game publisher lowered its annual sales outlook, while ride-hailing firm Lyft plummeted nearly 23% after forecasting current-quarter revenue below Wall Street estimates.