US stocks climb on Election Day, Dow nears 2010 high

NEW YORK (AP) — Major stock indexes rose Tuesday as investors awaited the results of Congressional elections, putting the Dow Jones industrial average near its highest point of the year.

The Dow rose 64.10, or 0.6 percent, to close at 11,188.72. It reached its closing high of 11,205.03 on April 26.

The broader Standard & Poor’s 500 index rose 9.19, or 0.8 percent, to 1,193.57. The S&P 500, which is more closely watched than the Dow by professional investors, is also still below its 2010 high of 1,217.28, reached on April 23.

Small companies performed especially well. The Russell 2000, the index that tracks the performance of smaller corporations, jumped two percent to 712.89. The index is up nearly 14 percent for the year, roughly double the return of the Dow and the broad Standard and Poor’s 500 index.

Uncertainty over the effects of the midterm elections and the size of the Federal Reserve’s expected stimulus program due Wednesday have kept the market from ending with either big gains or losses in recent days.

Eric Thorne, an investment adviser with Bryn Mawr Trust Wealth Management, said many traders have been using the end of the day to take short-term profits. With the economy still looking weak, there’s no guarantee stocks will continue to climb.

An expected win for Republicans in the House of Representatives could set up a scenario that leads to gridlock in Congress, meaning there could be a slowdown in new government spending and regulatory reform.

Exactly how the election will play out is still uncertain, which is part of the reason stocks have wavered recently. Analysts say companies have avoided hiring new workers because of questions surrounding taxes and costs associated with health care and financial regulatory overhauls. Election results could provide some more clarity about those issues.

High unemployment remains one of the biggest obstacles to a strong recovery.