Republican party takes Senate, Private job numbers up and Chrysler (FCAU) beats with third-quarter results

Markets were heading higher on Wednesday after the Republican Party took control of the Senate. Republicans took 52 seats while Democrats took 43.  Portfolio manager with Pioneer Investment Management, John Carey, said, “It had looked like some of the races would be very close and that we might not know who controlled the Senate, but in the end the results were pretty decisive. That’s good news for the industries that had been subject to regulatory issues.”

Private job numbers surpassed expectations in October. The ADP National Employment report showed that there was an addition of 230,000 jobs added last month. This is the seventh straight month of gains over the 200,000 level. This also surpassed that 220,000 that economists were expecting. When broken down by business size mid-sized business added 122,000 jobs and small businesses added 102,000. Professional and business services added the largest amount of jobs with 53,000. Mark Zandi, chief economist with Moody’s Analytics, said, “The job market is steadily picking up pace. Job growth is strong and broad-based across industries and company sizes.”

Fiat Chrysler (FCAU) shares were trading higher after the company released their third-quarter results that surpassed expectations. Net income rang in at $611 million, which was up 32% over this time last year. Revenue came in at $20.66 billion, which was 17.6% higher than last year. Vehicle sales jumped up to total 711,000. The company announced that they were holding tight to their full-year forecast for year. They expect full year net revenue to come in around $80 billion, adjusted net income to come in between $2.3 billion to $2.5 billion. Chief sales analyst with Cars.com said, “At the moment, the picture is rosy. Sales are doing well, incentive levels appear to be higher but still in check. Things are in a pretty healthy balance in the industry.”

That’s all for today,

Warren Gates, Normandy Research

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