Stocks opened higher after the midterm elections went generally according to consensus expectations. With the two parties now splitting congressional control, the prospects of a runaway agenda have been muted. The President said he welcomed the opportunity for bipartisan cooperation on the economy, as did Democratic leaders. Later on, however, Trump announced that Jeff Sessions had resigned as U.S. Attorney General at the President's request, which is likely to inflame a fight between Democrats and Republicans over the ongoing Russian interference probe being run by Robert Mueller.
ECONOMIC EVENTS: In the U.S., the FOMC began its 2-day meeting today, though no rate action is expected from the Fed tomorrow. U.S. consumer credit rose $10.9B in September following August's $22.9B jump.
COMPANY NEWS: Shares of Michael Kors (KORS) dropped 15% despite the fashion house reporting better than expected earnings for its fiscal second quarter, as the company also gave lower than expected guidance for the next three month period. Comparable store sales decreased 2.1%, which was in line with expectations according to Chairman and CEO John Idol.
Etsy (ETSY) rose 24% after the company reported Q3 results that RBC Capital analyst Mark Mahaney said showed "strong and improving fundamentals."
Meanwhile, Twilio (TWLO) jumped 35% following last night's Q3 results. Piper Jaffray analyst Alex Zukin said the company reported "yet another very strong quarter highlighted by broad-based strength," which he noted led to accelerating revenue growth.
In addition, shares of Mellanox (MLNX) gained 5% after CNBC reported that Xilinx (XLNX) approached the company about an acquisition and has hired Barclays to advise on a deal.
MAJOR MOVERS: Among the noteworthy gainers was New Relic (NEWR), which rose 12% after reporting Q3 results. Also higher after reporting quarterly results was Office Depot (ODP), which gained 24%.
Among the notable losers was MiMedx (MDXG), which dropped 41% after announcing that its stock is being delisted from the Nasdaq exchange. Also lower were Infinera (INFN) and Zillow (ZG), which fell 33% and 27%, respectively, after reporting quarterly results.
INDEXES: The Dow rose 545.29, or 2.13%, to 26,180.30 , the Nasdaq gained 194.79, or 2.64%, to 7,570.75, and the S&P 500 advanced 58.44, or 2.12%, to 2,813.89.
Use CPRI
-8.43 (-14.66%)
Etsy
+9.56 (+23.65%)
Twilio
+25.1 (+35.33%)
Bought by NVDA
+4.25 (+4.81%)
Xilinx
-0.845 (-0.98%)
New Relic
+10.035 (+11.67%)
Acquired by TWLO
+12.45 (+36.40%)
ODP Corporation
+0.665 (+24.23%)
MiMedx
-2.48 (-39.94%)
Infinera
-2.09 (-33.55%)
Zillow Group
-10.88 (-26.67%)
Zillow
-11.09 (-26.99%)