Article written by: Peter Petrov
U.S. stocks ended sharply higher Wednesday with all three of the indexes finishing shy of their intraday highs, following closely watched midterm elections that saw Democrats take control of the House, resulting in a divided Congress. The Dow Jones Industrial Average rose 545.25 points, or 2.13%, to 26,180, while the S&P 500 index climbed 58.43 points, or 2.12%, to 2,813. The Nasdaq Composite Index jumped 194.79 points, or 2.64%, to 7,570.75.
European markets closed higher, joining in on the rally in global stocks as investors turned to equities to express their relief over the U.S. midterm election results. The Stoxx Europe 600 closed 1.1% higher at 366.39, and Germany’s DAX 30 ended 0.8% higher at 11,579.10. The U.K.’s FTSE 100 closed 1.1% up at 7,117.28.
Tencent cutting marketing budget
Tencent Holdings Ltd. is cutting the marketing budget of its gaming division as the business suffers through regulatory disruptions and a slowdown in the Chinese economy, sources familiar with the matter have said. China’s largest gaming company, Tencent, is also cutting spending on its current games that aren’t performing well or have had their release pushed back to next year, with unused money to be returned to the group level.
China’s gaming industry, which generates more than $30 billion of revenue, has been hammered this year after regulators froze the approval process for new games, preventing companies from making money from their hit titles. The move has thrown Tencent into disarray, leading to its first profit drop in at least a decade and the evaporation of more than $200 billion of market value since a January peak.
Walmart starts deals sooner
Walmart Inc said it would start offering holiday deals for customers as early as Thursday, as it prepares to compete with Amazon Inc AMZ.N, Target Corp and other rivals for shoppers on one of the busiest shopping days of the year. Deals will start at 10pm EST on Thanksgiving Eve, 2 hours earlier than usual, to give shoppers on the US east coast more shopping time earlier on. The Bentonville, Arkansas-based retailer will also have deals available on Walmart.com beginning at 12:01 a.m. ET on Thursday, Nov. 8, the company said.
For years, Black Friday has marked the start of the holiday shopping season in the United States with retailers offering steep discounts. But its popularity has been on the wane with the rise of online shopping and inexpensive deals throughout the year. On Monday, Amazon said it would offer free shipping with no purchase minimum for the first time this holiday season, heating up the competition with Walmart Inc and Target, which in recent years have chipped away at Amazon’s lead with their own offers of free two-day shipping.
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