Democrats have taken the House today. As for the Senate, still counting votes now. Its 50-50, but it should be Democrats', unless Republicans are lucky .... or US market will see RED to 'cry' for Bush.
The Dow Jones Industrial Average rose 51.22 points to 12,156.77. Earlier in the session, the benchmark index gained as much as 91 points to strike a fresh all-time high of 12,196.32.
Of the 30 Dow stocks, 20 contributed to gains.
Meanwhile, the Nasdaq Composite Index was up 9.93 points at 2,375.88 while the S&P 500 Index was up 3.06 points at 1,382.84.
Dun get hype up over the rally, it is common in pre election rally. also the rally are fueled by hype rather than actual economic growth and strong fundamental. USA economy is still cooling down and its defict budget is still colossal.
sell in gradual basis and enter when correction bottom is still the best strategy.
NEW YORK (MarketWatch) - U.S. stocks rallied for a second session Tuesday, with the Dow Jones Industrial Average at a fresh all-time high, as optimism over earnings and the economy trumped concern about the outcome of mid-term congressional elections.
The Dow industrials rose as much as 76 points to 12,181.43, beating its previous record high of 12,167.02. The benchmark index was last up 66 points at 12,172, buoyed by gains for Boeing Co., Intel Corp., Alcoa Inc. and Pfizer Inc..
Of the 30 Dow stocks, 27 contributed to gains.
The Nasdaq Composite Index was up 21 points at 2,387 while the S&P 500 Index was up 5 points at 1,385.
"There have been six times since 1945 in which we went from total political unity, meaning the same party in the presidency and in both houses of Congress, to either total or partial gridlock yet the market didn't really seem to care," said Sam Stovall, senior investment strategist at Standard & Poor's.
Stovall said the S&P 500 gained 4.8%, on average, in that November-December period of those six times, and in five of the six times the markets rose.
In addition, said Stovall, gains over the last two sessions reflect "a cascade of optimism" as worries about high energy prices, the possibility of a recession, rising interest rates and international tensions have all eased considerably since the summer.
On the broader market for equities, advancers outpaced decliners by more than 2 to 1 on the New York Stock Exchange and the Nasdaq.
Volume was 432 million on the Big Board, and 640 million on the Nasdaq.
Dow up 38 points and Nasdaq up 11 points now .... Wow! A Mini Rally to boost today's US congressional elections! Hmmm ... Republicans at work here!??!!
Leading shares are set for a lacklustre opening, pausing for breath after strong gains yesterday, as downbeat news from housebuilder Toll Brothers added to caution ahead of today's mid-term elections, dealers said.
Toll Brothers could come under pressure in opening deals after the luxury housebuilder cut its guidance for next year, and said no recovery is in sight for the housing market.
The Dow industrials rose 119.51 points to 12,105.55, with McDonald's Corp., United Technologies Corp., American Express and GM all posting strong advancers.
Of the 30 Dow stocks, 26 contributed to gains. The Dow has ended lower for the last six sessions and closed under 12,000 for the first time in over two weeks on Friday.
The Nasdaq Composite Index gained 35.16 points to 2,365.95, while the S&P 500 Index gained 15.48 points to 1,379.78.
"I think we're seeing a carryover from Friday's economic news," said Michael Metz, chief investment strategist at Oppenheimer & Co., referring to a largely positive October employment report. "The feeling is that it is more and more unlikely that we have a recession." There were no economic reports on Monday.
Bolstering this view, Michael Moskow, the president of the Chicago Federal Reserve Bank said the U.S. economy should bounce back from the weak third quarter and average "somewhat below" a 3% real GDP growth rate over the next year. See full story.
In addition, Metz said the large number of deals announced ahead of the bell was also helping sentiment.
"Apparently there are a lot of entrepreneurial buyers who still find the stock market cheap and there is an enormous amount of money in their hands that can be used to buy companies."
On the broader market for equities, advancers outpaced decliners by more than 3 to 1 on the New York Stock Exchange, and by more than 2 to 1 on the Nasdaq.
Bulls make a comeback. Major gauges pop after last week's drubbing, led by tech-heavy Nasdaq composite; corporate deals lend support. Nov 6, 2006 10:53 am (Expect STI-the Same).
NEW YORK (CNNMoney.com) -- Stocks rallied Monday morning, snapping back after last week's selloff, as investors welcomed a slew of corporate deals and geared up for Tues congressional elections.
The tech-fueled Nasdaq composite (up 26.43 to 2,357.22, Charts) jumped more than 1 percent about 90 minutes into the session.
The Dow Jones industrial average (up 70.52 to 12,056.56, Charts) climbed 0.6 percent and the broader S&P 500 (up 10.22 to 1,374.52, Charts) index gained about 0.8 percent. The gains, if they hold, would snap a six-session losing streak for the Dow, the longest since mid-2005.
WASHINGTON (MarketWatch) -- The U.S. economy should bounce back from the weak third quarter and average "somewhat below" a 3% real GDP growth rate over the next year, said Michael Moscow, the president of the Chicago Federal Reserve Bank on Monday.
"My baseline forecast is that GDP growth will pick up from the weak third quarter and average somewhat below its potential growth rate [3.0% GDP growth] over the next year or so," Moskow said in remarks prepared for delivery to the Chicagoland Chamber of Commerce/WBBM Newsradio 780 annual economic forecast breakfast.
Real GDP increased at a 1.6% rate in the third quarter, the weakest quarterly growth rate in three years.
Moskow attributed much of the slowdown in the July-September quarter to the weak housing sector, but noted that this only accounted for 5% of U.S. gross domestic product.
"Home construction is on average only about 5% of GDP -- that's about the same as people spend on recreation items such as books, golf clubs, and tickets to theater and opera," Moskow said.
"Currently, we do not see the slowing in housing markets spilling over into a more prolonged period of weakness in the U.S. economy overall," Moskow said.
"On balance, the 95% of the economy outside of housing remains on good footing," Moskow said.
Moskow, who will be a voting member of the Federal Open Market Committee next year, said that researchers at the Chicago Fed expect some further weakness in residential construction given the fundamentals in the sector.
He repeated his belief that the risk of inflation remaining too high is greater than the risk of growth being too low.
He said he supported the FOMC statement that additional firming of monetary policy may be needed to bring inflation down, but said the decision will depend on how the incoming data affect the outlook.
The Fed has been able to pause at the past three meetings because inflation expectations have been contained, Moskow said.
"Nonetheless, we have to be vigilant in monitoring these expectations. If they did increase, it would be incumbent on the Federal Reserve to adjust policy to affirm our commitment to price stability," he said.
Moskow said he thinks it is likely that core inflation "will come down somewhat over time," and said the recent declines in oil prices clearly are a positive factor.
But he said there is a risk that core PCE inflation could remain above his 2% comfort level "for some time." Core PCE has been running at or above 2% for 30 months.
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