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Investing.com — The Dow jumped on Tuesday on the prospect of a divided government, which could put a crimp on major policy changes in the next Congress.
Republicans had momentum to overtake the Democrats’ hold in the House, while several hotly contested Senate races could change the 50-50 balance between the parties in that chamber. President Joe Biden has been pushing for more investment in clean energy technologies and regulation, agenda items that could be challenged by a Congress that shifts toward Republican control.
Investors were also awaiting a closely watched report on inflation for October. The consumer price index on Thursday is expected to show a deceleration in prices over 12 months from the prior reading, a potentially welcome sign that the Federal Reserve would decide to ease back on the pace of its interest rate increases beginning in December.
The Fed has been looking at inflation and labor market data as it decides what move to make next, after raising its benchmark rate by 0.75 percentage points at four consecutive meetings.
Data on the number of new jobless claims for the prior week are also due out on Thursday morning.
Here are three things that could affect markets tomorrow:
1. Rivian earnings
Electric vehicle maker Rivian Automotive Inc (NASDAQ:RIVN) is expected to report a loss of $1.81 a share on revenue of $568 million. Amazon (NASDAQ:AMZN) is getting ready to introduce 1,000 Rivian delivery vehicles during the holiday season.
2. DR Horton earnings
Homebuilder DR Horton Inc (NYSE:DHI) is expected to report earnings per share of $5.18 on revenue of $10.17 billion. The sector has been under pressure by a slowdown in the housing market, as prospective buyers sit on the sidelines amid rising mortgage rates.
3. Roblox earnings
Video game developer Roblox Corp (NYSE:RBLX) is expected to report a 29 cent per share loss on revenue of $690.8M.
