US stocks closed higher today as traders eyed key congressional and local elections and a meeting of the Federal Reserve that would likely decide on new economic stimulus.
Stocks traded in positive territory throughout the session as Americans began voting in the mid-term elections which appeared set to give Republicans control of the House of Representatives, while President Barack Obama's Democrats were expected to keep a narrow majority in the Senate.
"The global equity markets are nicely higher as traders are optimistic that the results of today's US mid-term elections will prove favourable for future policy making surrounding business activity," said analysts at Charles Schwab.
A gridlock in Congress would limit the passage of new laws that could affect the markets and reduce uncertainty, in the eyes of many traders.
The blue-chip Dow Jones Industrial Average rose 64.10 points (0.58 per cent) to 11,188.72 points in closing trades, while the broader S&P 500 index advanced 9.19 points (0.78 per cent) to 1193.57.
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The tech-rich Nasdaq composite index was up 28.68 points (1.14 per cent) to 2533.52.
The Charles Schwab analyst also noted "stocks are being supported by elevated expectations of the deployment of further stimulus efforts by the Fed after its two-day policy meeting, which began today, pressuring the US dollar and lifting commodity prices".
The Fed's policy-setting panel, the Federal Open Market Committee, is expected to announce tomorrow a decision to renew large-scale asset purchases, known as quantitative easing, in a bid to boost the weak economic recovery.
And while the stocks markets have steadily risen in recent weeks in anticipation of the stimulus, traders were nevertheless anxiously waiting to find out its scope and depth.
Shortly before the opening bell, Pfizer reported a third-quarter profit of $US866 million ($877.32 million), a 70 per cent drop from the corresponding period a year ago, which the world's biggest drugmaker attributed to acquisition costs.
The company reported earnings per share of 54 cents, beating most analysts' expectations by three cents.
Pfizer shares declined 0.9 per cent.
And Kellog said its third-quarter profit fell six per cent from last year to $US338 million ($342.42 million) as result of a drop in cereal sales and a massive June recall. Its shares fell two per cent.
In other corporate news, Oracle announced it will buy ecommerce software developer Art Technology Group for $US1 billion ($1.01 billion) dollars as more and more technology firms seek to expand their online services.
Oracle shares were up 1.4 per cent, while Art Technology Group saw its stocks soar 45 per cent on the news.
Wall St hit by rates and earningsDow settles near 2010 high as voters go to polls
