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Nov 8, 2006 8:47 am US/Eastern
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Stocks Mixed After Democratic Wins
LONDON (AP) ―
U.S. stock market futures dropped on Wednesday after results from midterm elections left the possibility that the Democrats may take control of both the House of Representatives and the Senate.
Dow Jones futures were recently down 34 points, S&P 500 futures dropped 5.3 points and Nasdaq futures dropped 6 points.
On Tuesday, U.S. stocks rose for the second straight day. The Dow industrials rose 51 points, the Nasdaq Composite rose 9.9 points and the S&P 500 rose 3.1 points.
Markets weren't as bullish on Wednesday. Though markets had largely expected the Democrats to take control of the House, the Democrats weren't widely expected to take over the Senate. The Democrats could take control if they win in Montana and Virginia, two races that still haven't been declared.
"The Democrats are known to be less business friendly than the Republicans and there will be less decision making coming out of the U.S. government for the next two years. It's that simple," said Geoff Langham, head of trading for CMC Markets in London.
International stock markets also were down.
The Nikkei 225 finished 1.1 percent lower in Tokyo, and the FTSE 100, heavy weighted toward the pharmaceutical sector, lost 0.5 percent in London.
The dollar was mildly weaker against the euro and the yen.
Crude oil futures saw modest strength but didn't recapture the $60 a barrel level in electronic trading on Wednesday, with weekly inventory numbers to come.
Crude futures edged 17 cents higher at $59.10 a barrel ahead of the figures, with analysts mixed on whether to expect a build or draw in crude inventories.
Earnings news was due from a few top names, including Federated Department Stores, Cablevision Systems and Cisco Systems.
True Religion Apparel is expected to see a sharp drop after warning it won't meet analyst expectations for earnings or revenue, and UTStarcom may fall after delaying the release of its third-quarter earnings for a review of its stock-option grant practices.
Overseas, Airbus owner EADS posted an unexpected loss, while automakers Volkswagen and PSA Peugeot Citroen were mixed after naming new chief executives.
(© 2006 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)