Stock market news: Dow jumps Democrats win House, Republicans hold Senate

Traders
work on the floor of the New York Stock Exchange shortly after
the opening bell in New York
Thomson
Reuters

Stocks rose Wednesday following
the
2018 midterm elections that shifted the balance of power in
Washington, with Wall Street preparing for the possibility of
legislative obstacles within a divided Congress.

The Dow Jones Industrial Average
jumped 1%, or more than 250 points, and the Nasdaq Composite rose
1.2%. The S&P 500 was up 1.1%. Democrats

took control of the
House

early Wednesday
morning, gaining more than 26 seats, while Republicans

expanded their majority in the
Senate

.

“In other words, certainty ruled
the day,” said Paul Eitelman, a strategist at Russell
Investments. “Had the unlikelier scenario of a Democratic
takeover of both the House and the Senate won out, we think
markets likely would have moved in more significant fashion in
the days ahead.”

Shares of medical companies
jumped, with the S&P 500 health care index up 1.9%. A repeal
of the Affordable Care Act or other measures that could reduce
medical costs were unlikely following the results.


DaVita

surged nearly
13% after California rejected a cap on dialysis revenue.

Cannabis stocks

rallied

after Michigan legalized recreational weed
use, marking the first Midwestern state to do so. Utah and
Missouri, meanwhile, passed legislation making marijuana legal
for medical purposes.


Tilray

shares were up
7%, and


Aprhia

shares gained
5%.

Oil companies in Colorado rose
after voters rejected a ballot measure that would have limited
drilling and fracking in the state, particularly within the
prolific Denver-Julesburg Basin. Shares of


Anadarko Petroleum

and


Noble Energy

both
jumped more than 7%.

With fewer near-term expansionary
fiscal measures likely, according to analysts, the

dollar

fell against a basket of currencies. Treasury
yields slipped, with the 10-year down 1.5 basis points to
3.2%.

Meanwhile, the Federal Reserve is
expected to keep monetary policy steady at a meeting Thursday.
The central bank increased its benchmark interest rate by 25
basis points to 2.25% in September, and has signaled the next
hike could come in December.

Earnings season continued, with
BMW reporting a 24% drop in net profits in the third
quarter.


21st Century Fox

posted a rise in profits, but disappointing
sales.


Disney

, which on
Tuesday received approval from European Union regulators to
acquire the cable-network business, is scheduled to report on
Thursday.