The US stock market closed higher with investors relieved that the midterm elections produced a clear result.
The Dow Jones and S&P 500 hit fresh records.
Sentiment was also boosted by an upbeat jobs survey, raising hopes that the official payroll figures on Friday will be strong.
The Dow Jones closed after adding 100.69 points at 17,484.53.
The broad-based S&P 500 rose 11.47 points to 2,023.57 while the NASDAQ lost early gains and fell 2.91 points to 4,620.72.
The US stock market closed higher with investors relieved that the midterm elections produced a clear result (photo Reuters)
Energy shares rose on hopes that the Republican majority in the Senate could lead to new energy-friendly legislation.
The midterm vote also boosted the dollar, which jumped to a seven-year high against the yen of 114.65 yen.
Meanwhile, investors were impressed by a report from payroll processor ADP which said that private firms in the US added 230,000 jobs in October. This was ahead of forecasts and the largest increase since June.
Among individual firms, shares in TripAdvisor dived 14% after the travel review website’s third quarter results fell short of expectations.
Net income for the quarter fell to $54 million from $56 million a year earlier, following a big increase in marketing costs.
Time Warner shares rose 4% after its third quarter profit and revenue beat expectations. It posted net income of $967 million with revenue up 3.3% to $6.24 billion.
US shares closed at record levels, helped by strong data on the manufacturing sector.
The Dow Jones rose 26 points to close at 16,743, its second consecutive record close.
The broader S&P 500 added just a point, but that was enough to secure its third consecutive record session.
US factories remained busy in May, according to the manufacturing activity index compiled by the Institute for Supply Management (ISM).
US shares closed at record levels, helped by strong data on the manufacturing sector (photo AP)
The ISM had to correct its original release which showed slowing activity, but had been calculated incorrectly.
“The market has lately been focused more on the weak economic news and the bond market, but we saw a reversal of that today with the revised [ISM] numbers,” said Rick Meckler, president of hedge fund LibertyView Capital Management in Jersey City, New Jersey.
“But it’s hard to move the market higher, considering we are fairly fully valued at this point,” he said.
The technology focused NASDAQ fell 10 points to close at 4,237.
Shares in Botox-maker Allergan soared 9% after Valeant Pharmaceuticals said it would go hostile with its bid for the company.
Activist investor, Bill Ackman, who is partnering with Valeant in the bid, said he would move to replace almost the entire board of Allergan.
Equipment maker Caterpillar was the biggest winner among the Dow Industrials, rising 1.5%.
Technology giant Intel also had a strong session, adding 1.1%.
On the NASDAQ, Broadcom shares rose over 10% after the company said it would look for a buyer for its division that makes chips used in mobile devices.
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