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Meta Platforms rises on report of job cuts
Apple slips as COVID-19 curbs crimp iPhone production in
Indexes up: Dow 0.36%, S&P 0.26%, Nasdaq 0.17%
Nov 7 (Reuters) - U.S. stock indexes edged higher in
choppy trading on Monday, with focus shifting to Tuesday's
midterm elections that will determine control of Congress, while
shares of Meta Platforms jumped on a report of job cuts at the
Republicans have picked up momentum in polls and analysts
see a split government, with the GOP winning the House of
Representatives and possibly the Senate, as the likely outcome
possibly hindering Democratic President Joe Biden's agenda.
"Under this election outcome scenario, we doubt we would
make any major changes to our forecasts for GDP growth,
inflation or the federal funds rate as a result of the
election," Wells Fargo economists said.
"Instead, status quo and political gridlock strike us as the
most likely outcome, with the possibility for some government
shutdown/debt ceiling theatrics over the next two years."
A split government could result in political gridlock that
stymies major policy changes, an outcome that investors see as
favorable for equities.
Focus will also be on U.S. consumer prices data for October,
due to be released on Thursday, for clues on whether the U.S.
Federal Reserve's rapid interest rate hikes are helping cool
down the economy.
Four Fed policymakers on Friday indicated they would still
consider a smaller rate hike at their next policy meeting,
despite new data showing another month of robust job gains and
only small signs of progress in lowering inflation.
Traders are now betting on 67% odds of a 50-basis point rate
hike at the U.S. central bank's meeting in December.
All the three major U.S. indexes are in bear market
territory, from their previous record closing highs. The S&P 500
has lost nearly 20.7% year-to-date on worries that aggressive
monetary policy tightening could tip the economy into a
At 10:06 a.m. ET, the Dow Jones Industrial Average
was up 117.28 points, or 0.36%, at 32,520.50, the S&P 500
was up 9.74 points, or 0.26%, at 3,780.29, and the Nasdaq
Composite was up 17.44 points, or 0.17%, at 10,492.69.
Shares of Meta Platforms Inc climbed 5.4% following
a report that the company was planning to begin large-scale
layoffs this week.
Weighing on the tech-heavy Nasdaq, Apple Inc fell
1.2% after the company said it expected lower shipments of
premium iPhone 14 models than previously anticipated.
Digital World Acquisition Corp surged 21% as former
U.S. President Donald Trump hinted at another White House bid.
The blank check firm has agreed to take social-media startup
Trump Media & Technology Group Corp public.
Walgreens Boots Alliance Inc rose 4.8% as VillageMD,
a primary care provider backed by the pharmacy chain, said it
will acquire Summit Health in a deal valued at nearly $9
Advancing issues outnumbered decliners for a 1.31-to-1 ratio
on the NYSE and a 1.10-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and two new
lows, while the Nasdaq recorded 43 new highs and 95 new lows.
(Reporting by Shubham Batra and Amruta Khandekar in Bengaluru;
Additional reporting by Shreyashi Sanyal and Devik Jain; Editing
by Shounak Dasgupta)