GOP Regains U.S. Senate Control, Stocks Rise as Oil Falls

Nichole Harper
05 Nov, 2014
New York City

U.S. stocks extended gains and Republicans regained the control of U.S. Senate after eight years. Republicans are expected to push harder for the revisions in environmental policies, lower corporate taxes and chip away at healthcare law.

[R]4:00 PM New York – U.S. stocks extended gains and Republicans regained the control of U.S. Senate after eight years. Republicans are expected to push harder for the revisions in environmental policies, lower corporate taxes and chip away at healthcare law.[/R]

U.S. market indexes rose and extended recent weeks rally as Republicans regained the control of the U.S. Senate after eight years and increased majority in the U.S. House.

S&P 500 index increased 10.16 or 0.5% to 2,022.23 and the Nasdaq Composite Index declined 5.45 or 0.1% to 4,618.12.

Energy companies led the decliners in stocks today and the oil futures traded lower and investors focused on the revised legislative agenda.

Republicans won Senate seats in Arkansas, Colorado, Iowa, Montana, North Carolina and West Virginia.

The next presumed Senate leader Mitch McConnell, a Kentucky Republican, and President Barack Obama spoke today about advancing the tax-law revision and trade agreements.

U.S. Movers

Cognizant Technology Solutions Corp ((CTSH)) jumped 5% or $2.43 to $50.93 after the outsourcing service provider reported revenues in the third-quarter ending in September climbed 11.9% to $2.58 billion from a year ago period.

Net income in the quarter soared 11.3% to $355.6 million or 58 cents a diluted share compared to $319.6 million or 53 cents from a same quarter last year.

The company forecasted revenues for the fourth-quarter between $2.61 billion and $2.64 billion and for the year in the range of $10.13 billion to $10.16 billion.


Tripadvisor Inc ((TRIP)) plunged 13.8% or $11.55 to $72.24 after the online travel reviews site operator said revenue in the third-quarter ending in September climbed 39% to $354 million from a year ago period.

Net income in the quarter dropped 4% to $54 million or 37 cents a diluted share compared to $56 million or 38 cents from a same quarter last year.

European Markets

In London trading, FTSE 100 index jumped 1.1% or 72.10 to 6,526.07 and in Frankfurt the DAX index climbed 1.6% or 148.01 to 9,314.48.

In Paris, CAC 40 index increased 1.6% or 64.55 to 4,194.74.

Alstom SA gained 1.9% to €28.40 after the France-based transport and energy infrastructure developer reported revenue in the first-half ending in September climbed 13% to €3.06 billion from €2.70 billion a year ago period.

Net profit in the period tumbled 31% from a year ago to €263 million compared to €381 million and diluted earnings per share dropped to €0.82 from €1.20.

During the quarter, new orders surged 134% to €6.41 billion and orders backlog climbed 19% to €26.93 billion, representing 53 months of sales.

ING Groep N.V rose 0.2% to €25.62 after the Netherlands-based bank said total revenues in the third-quarter ending in September jumped 4.5% to €3.94 billion from €3.77 billion a year ago period.

Net profit in the period surged 625% from a year ago to €928 million compared to €128 million and diluted earnings per share dropped to €0.82 from €1.20.

In the quarter, the lender set aside €322 million for the provision for loan losses, down from €552 million a year ago and €405 million in the previous quarter.

Asian Markets

Japanese stocks advanced for the third day in a row and the Nikkei extended gains to 8.2% in the month.

The Nikkei 225 Stock Average gained 74.85 or 0.4% to 16,937.32 and the broader Topix index rose 3.11 to 1,371.76.

The yen eased for the fourth day and closed at 114.50 against one dollar.

The stock market indexes climbed for the third day in a row after GPIF announced it plans to cut domestic bond allocation to 35% from 60% and increase target allocation for domestic and international stocks to 25% each from 12% each.

The Government Pension Investment Fund also tripled its allocation target for real estate trusts.

Toyota Motor Corp rose 0.1% to 6,808 yen after the largest automaker reported net revenues in the first-half ending in September rose 3.3% to 12.95 trillion yen from 12.54 trillion yen a year ago period.

Net income in the period soared 12.6% to 1.13 trillion yen compared to 1 trillion yen and diluted earnings per share jumped to 355.91 yen from 315.58 yen in the same period a year ago.

The automobile company forecasted net revenue for the year to increase 3.3% to 26.50 trillion yen and net income to climb 9.7% to 2 trillion yen from a year ago period.

In Mumbai trading, the Sensex Index rose 55.50 or 0.2% to close at 27,915.88. The CNX Nifty increased 14.15 or 0.2% to 8,328.30.