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Stocks rally as GOP takes Senate

Stocks are rebounding today after Republicans gained control of the Senate and as investors await key employment numbers.

S&P 500 futures are up 0.6 percent and near their highs of the morning. Most of Europe is up more than 1 percent after companies reported strong earnings despite lackluster economic data. Asia was mixed overnight, with Japan fractionally higher and China down modestly. The GOP's political gains are also lifting the U.S. dollar and hammering precious metals.

Attention now turns to ADP's private-sector payrolls report at 8:15 a.m. ET, which is expected to show that 285,000 jobs were added last month. The Institute for Supply Management's service-sector index follows at 10 a.m. ET.

The S&P 500 is less than half a percent from its all-time high on Monday following a sharp rally in the second half of October. Sentiment has been supported by strong economic data and earnings. Investors have also found opportunities in new technology niches such as telecom suppliers, contract manufacturers of electronics, and data-storage companies. Airlines, biotechnology, select industrials, and financials have been strong as well, according to our researchLAB market scanner.

In company-specific news, Time Warner and Cognizant Technology Solutions both gained about 3 percent after earnings and revenue beat consensus. Nu Skin Enterprises declined 12 percent after missing estimates. FireEye cratered 19 percent after missing on revenue and trimming guidance. TripAdivisor is down 13 percent on weak profit.

Silver fell more than 4 percent, and gold dropped more than 2 percent. Copper also slid almost 1 percent, and oil is fractionally lower. Every other major currency is down against the greenback, led by a 1.4 percent drop by the commodity-centric Australian dollar. The euro is higher against the Japanese yen as well, a sign of risk appetite.

The agenda remains busy the rest of the week, with the European Central Bank's monetary announcement and initial jobless claims tomorrow, followed by non-farm payrolls Friday.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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