By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- Wall Street was poised for a stronger
start on Wednesday, with stock futures gaining after Republicans
retook control of the Senate after a string of midterm election
victories on Tuesday.
It's a power shift that sees the GOP holding majorities in both
Houses of Congress, which some argue portends, perhaps, less
political gridlock and a more pro-business tone.
Stock futures extended gains after data from ADP showed the
private sector added 230,000 jobs last month, exceeding consensus
forecasts.It is the sixth month in seven that private-sector hiring
has topped 200,000.
Futures for the Dow Jones Industrial Average (DJZ4) rose 88
points, or 0.5%, to 17,393, while those for the S&P 500 index
(SPZ4) gained 11.60 points, or 0.6%, to 2,017.10. Technology stocks
were pointing to an even brighter start, with futures for the
Nasdaq-100 index (NDZ4) adding 26.50 points, or 0.6%, to
4,170.00.
"I think the [fact that the] market has taken the news of the
Republicans victory so positively could be down to their policies,
for example for businesses, which the market believes will aid
them," said Sam Fox, financial sales trader at SpreadEx, in emailed
comments.
Read: A breakdown of how the market performs after midterm
elections.
By midnight Eastern time, Republican candidates had snared seven
seats in key battleground states. By taking the Senate and keeping
the House, the GOP takes control of Congress for the first time in
eight years. See: The surprises that defined Republicans' very good
Election Day
The dollar(USDJPY) shot to a seven-year high against the yen in
wake of those election results. As the dollar surged, gold
prices(GCZ4) tumbled about 2%, and silver (SIZ4) sank nearly 4%.
Republicans are expected to be tougher on the Federal Reserve and
so-called loose monetary policies.
Payroll data, Fed speakers ahead: Private-sector hiring slightly
picked up in October, as employers added 230,000 jobs, ADP reported
Wednesday. The reading can influence market expectations for
Friday's key monthly jobs report.
The Institute for Supply Management's nonmanufacturing survey
for October will be released at 10 a.m. Eastern.
Minneapolis Fed President Narayana Kocherlakota, a voting member
of the Fed policy committee this year, will give a speech on
"clarifying the objectives of monetary policy" in Virginia, Minn.
at 9:15 a.m. Eastern time. Richmond Fed President Jeffrey Lacker
will give a speak on 'Committing to Financial Stability" at a
conference at George Washington University at 9:30 a.m. Eastern. He
becomes a voting member next year.
Boston Fed President Eric Rosengren, not a voting member, will
give a speech at the Global Banking Standards and Regulatory and
Supervisory Priorities in Lima, Peru at 10 a.m. Eastern.
Stocks to Watch: Mondelez International Inc (MDLZ) surged after
the packaged-food company beat estimates for the third-quarter
earnings.
EOG Resources (EOG) jumped after the oil and gas company beat
earnings and revenue forecasts and raised its full-year production
outlook.
Time Warner Inc. (TWX) shares climbed after its sales and
earnings beat forecasts.
Later on Wednesday, Tesla Motors Inc. (TSLA) will report, and
shares were up 1.1% ahead of those results. What to expect from
Tesla earnings
Shares of Activision Blizzard Inc. (ATVI) rose after the group
posted a weaker-than-expected outlook for the fourth quarter in
late trading Tuesday, but earnings beat forecasts.
TripAdvisor Inc. (TRIP) slid after its third-quarter results
disappointed.
FireEye Inc. (FEYE) tumbled after the company missed sales
forecasts for the third quarter.
(Read more about the day's notable stocks in Movers &
Shakers column:
http://www.marketwatch.com/storyno-meta-for-guid.)
Commodities under pressure: While gold fell, there was also no
letup for oil prices, with WTI crude(CLZ4) down another 40 cents.
U.S. stocks finished a choppy session lower on Tuesday, dragged by
steep losses for energy companies.
Europe stocks caught a tailwind from higher U.S. stock futures.
In Asia, stocks generally fell, outside of a 0.4% gain for the
Nikkei 225 index .
Subscribe to WSJ: http://online.wsj.com?mod=djnwires