Here are five things you must know for Wednesday, Nov. 7:
1. -- Stocks Rise as Democrats Win House, GOP Holds Senate
U.S. stock futures posted solid gains on Wednesday, Nov. 7, as investors reacted to the Democrats taking back control of the House of Representatives for the first time since since 2010, potentially frustrating key economic initiatives from Donald Trump.
With election results still being tabulated, the outcome of the midterms played out liked many experts expected: Democrats won a majority of seats in the House of Representatives while Republicans retained control in the Senate. Democratic gains in the House were fueled by a wave of voter dissatisfaction with Donald Trump despite his record on jobs, the economy and the broader financial markets.
The "split" Congress could skew returns for the S&P 500 over the next two years toward the lower end of historical post-election averages.
- Dow Futures Power Ahead as Democrats Take House, Republicans Hold Senate
- 6 Stocks Cramer Likes if Democrats Win the House (and 4 He Likes if They Don't)
Contracts tied to the Dow Jones Industrial Average rose 134 points, futures for the S&P 500 gained 17.75 points, and Nasdaq futures were up 64.75 points.
2. -- Fed Not Expected to Raise Rates at November Meeting
The economic calendar in the U.S. on Wednesday includes a meeting of the Federal Reserve. Experts have predicted the central bank won't raise interest rates at the meeting, as it has done so three times so far in 2018, but say it's likely the Fed will hike rates at its meeting next month. An announcement from the Fed is expected at 2 p.m. ET on Thursday, Nov. 8.
The calendar also includes Oil Inventories for the week ended Nov. 2, at 10:30 a.m.
3. -- AMD Gets Boost From Amazon Partnership
Shares of Advanced Micro Devices Inc. (AMD) - Get Report were rising 1.4% in premarket trading on Wednesday after jumping nearly 4% during the previous session following an announcement from the chipmaker that Amazon.com Inc.'s (AMZN) - Get Report Amazon Web Services was launching three cloud computing instances that use AMD's Epyc server CPUs, rather than Xeon CPUs from Intel Corp. (INTC) - Get Report .
Amazon said the AMD-powered instances were 10% cheaper than existing, comparable, Intel-powered instances.
AMD CEO Lisa Su, in a discussion with TheStreet's Eric Jhonsa, talked about the importance of the AWS partnership, and the types of workloads for which Epyc CPUs were often being used.
AMD shares have risen more than 101% year to date.
4. -- Qualcomm, Square and Roku Highlight the Earnings Calendar
Humana Inc. (HUM) - Get Report reported Wednesday third-quarter adjusted earnings of $4.58 a share, beating forecasts of $4.27. The health insurer also raised its adjusted earnings guidance for 2018 to about $14.40 a share, up from previous guidance of about $14.15. Shares rose 0.4% in premarket trading.
Michael Kors Holdings Ltd. (KORS) posted fiscal second-quarter adjusted earnings of $1.27 a share, 17 cents above estimates, but the stock sank 11.1% after sales of $1.25 billion came up just shy of estimates. The company also said it expects fiscal 2019 revenue of $5.13 billion, which is below forecasts of $5.14 billion, and earnings of $4.95 to $5.05 a share vs. estimates of $5.03.
Earnings reports were also expected after Wednesday's closing bell from Qualcomm Inc. (QCOM) - Get Report , Square Inc. (SQ) - Get Report , Roku Inc. (ROKU) - Get Report , Groupon Inc. (GRPN) - Get Report and Wynn Resorts Ltd. (WYNN) - Get Report .
5. -- Papa John's Sales Drop 16%
Papa John's International Inc. (PZZA) - Get Report posted third-quarter adjusted earnings of 20 cents a share, missing analysts' estimates by 2 cents, while revenue of $364 million declined about 16% and came in below forecasts of $393.7 million.
Same-store sales in North America declined 9.8% in the period, narrower than estimates that called for a drop of 10.8%. The stock was up 3.6% in premarket trading.
The stock jumped in early October following reports that private-equity firm Trian Fund Management was considering bidding for the company.
Papa John's put itself up for sale earlier this year after the company's board forced out its founder and chairman, John Schnatter, for using a derogatory racial term during a marketing call.
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