Dow Races Ahead of Mid-Term Elections - InvestingChannel

Dow Races Ahead of Mid-Term Elections

Stocks rallied Monday as investors looked ahead to a packed week with congressional midterm elections and key inflation data on deck over the next few days, and shrugged off a supply warning from Apple.

The Dow Jones Industrials flew 423.78 points, or 1.3%, to close Monday at 32,827.

The S&P 500 advanced 36.25 points, or 1% to 3,777.21

The NASDAQ fell 15.9 points to 10,458.35.

Retail trade led the Dow higher, with Walgreens Boots Alliance’s 4% jump on news that it would spend $3.5 billion to support VillageMD’s acquisition of urgent care provider Summit Health.

The company also raised its 2025 sales goal for U.S. health care business. Home Depot and Walmart also rose.

Shares of Apple fell roughly 1% after the tech company said iPhone production has been temporarily reduced because of COVID-19 restrictions in China.

Palantir shares, meanwhile, declined more than 12% after the company posted disappointing quarterly results. Carvana tumbled 15%, after falling more than 20% earlier in the day.

Facebook parent Meta gained about 5% following a Wall Street Journal report that said the company could start layoffs as soon as Wednesday.

Elsewhere, several companies are expected to report Monday including Activision Blizzard, Lyft and Take-Two Interactive. Corporate earnings season is winding down with a majority of companies in the S&P 500 having reported results.

Tuesday’s mid-term election will determine which party will control Congress, and impact the direction of future spending. Democrats currently control the House, and have a majority in the Senate.

Investors could approve of a potential gridlock that may come out of the mid-term elections as a Democratic president, with a Republican or split Congress, has historically meant above-average gains, according to experts.

Treasury prices gave up its gains, raising yields to 4.22% from Friday’s 4.18%. Treasury prices and yields move in opposite directions.

Oil prices slumped 69 cents to $91.92 U.S. a barrel.

Gold prices gained a dollar to $1,677.60 U.S. an ounce.

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