Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 7, 2022.
Brendan Mcdermid | Reuters
Stock futures rose Monday evening following a winning day for markets as investors looked ahead to U.S. midterm elections on Tuesday.
Futures tied to the Dow Jones Industrial average rose 83 points or 0.26%. S&P 500 futures and Nasdaq 100 futures gained 0.31% and 0.42%, respectively. Shares of Lyft fell 13% while Take-Two Interactive and Tripadvisor slumped more than 15% each after reporting disappointing quarterly results.
The moves come after a day when all major indexes notched a second straight positive session. The Dow Jones Industrial Average closed higher by 423.78 points, or 1.31%. Meanwhile, the S&P 500 gained 0.96%, and the Nasdaq Composite rose 0.85%.
Investors are awaiting Tuesday’s midterm election results. They will determine which party controls Congress and steer future policy and spending.
Any market reaction will likely hinge on whether Republicans take back the House of Representatives, the Senate or both.
“The idea that [Republicans are] going to take back the house is pretty much baked into the market,” said Lori Calvasina, RBC Capital Markets on CNBC’s “Fast Money” on Monday. “I’m not saying it won’t be a good thing, that we won’t have a few days of feeling good or that it won’t provide some stability, but I think for a big kicker in the S&P they need to take back the Senate as well.”
Wall Street will also closely watch Thursday’s consumer price index report for the latest data on how much the Federal Reserve’s interest rate hikes have tamed high inflation. This reading could also signal the central bank’s path forward – another hotter-than-anticipated report could embolden the Fed to raise rates aggressively in December.
Earnings season continues this week. On Tuesday, Lordstown Motors, Lucid Group, Walt Disney and AMC Entertainment all report their latest quarterly results.
5 HOURS AGO
Lyft, Take-Two Interactive and Tripadvisor slump in after hours trading
A slew of companies reporting earnings Monday evening saw their stock slump in after hours trading on disappointing results and weak forward guidance.
Lyft — Lyft stock sank 13% after the ridesharing company reported mixed earnings results. Lyft reported adjusted earnings per share of 10 cents, more than analysts’ expectations of 7 cents, but revenue fell short of the Street’s forecast, coming in at $1.05 billion versus $1.06 billion expected, per Refinitiv.
Take-Two Interactive — Shares of software company Take-Two sank 15% after reporting a miss on revenue and lowering their guidance for the rest of the fiscal year. Revenue for the quarter was $1.50 billion versus an expected $1.55 billion. For the current quarter and the full year, the company is also anticipating weaker-than-expected net bookings.
Tripadvisor — Shares of Tripadvisor sank more than 15% in after-hours trading following a miss on earnings. The company reported adjusted earnings per share of 28 cents where analysts expected adjusted earnings per share of 38 cents, according to Refinitiv. Revenue, however, was $459 million versus the $442 million estimate.
Read more about after hours movers here.
—Carmen Reinicke
5 HOURS AGO
Stock futures are flat ahead of Tuesday’s U.S. midterm elections
U.S. stock futures opened little changed in Monday night trading as Wall Street awaits Tuesday’s U.S. midterm elections.
Futures tied to the Dow Jones Industrial average shed 18 points or 0.05%. S&P 500 futures and Nasdaq 100 futures fell 0.05% and 0.01%, respectively.
Earnings weighed on stocks in after hours trading. Shares of Lyft fell 13% while Take-Two Interactive and Tripadvisor slumped more than 15% each after reporting disappointing quarterly results.
--Carmen Reinicke