US close: Stocks higher ahead of CPI, midterms

Wall Street stocks closed higher on Monday as investors looked ahead to this week's midterm election and the publication of the all-important consumer price index.

At the close, the Dow Jones Industrial Average was up 1.31% at 32,827.00, while the S&P 500 advanced 0.96% to 3,806.80 and the Nasdaq Composite saw out the session 0.85% firmer at 10,564.52.

The Dow Jones closed 423.78 points higher on Monday, extending gains recorded in the previous session as market participants thumbed over a hotter-than-expected non-farm payrolls report.

Monday's gains came ahead of Tuesday's midterm election, which will determine which US party will control Congress, impacting future government spending, while

In addition to this, traders looked forward to Thursday’s CPI report, which will give further insight into the Fed's efforts to fight inflation, with another hot inflation report likely to convince investors that a pivot away from higher interest rates may be further away than currently thought.

Investors also digested China's renewed commitment to remain steadfast with its strict Covid-related measures following optimism last week that authorities would change their minds on restrictions that have been dragging down economic growth in the world's second-largest economy.

On the macro front, total US consumer credit rose $25.0bn in September down from a revised print of $30.2bn a week earlier for a 6.4% seasonally adjusted annual gain. According to the Federal Reserve, revolving credit rose 8.7% in September, while non-revolting credit increased 5.7%.

In the corporate space, Apple stock traded lower at the open after the tech behemoth revealed that iPhone production had been temporarily halted due to Covid-19 restrictions in China, while Palantir Technologies posted Q3 earnings that fell short of estimates.

Activision Blizzard beat earnings per share and revenue estimates with its third-quarter results, Take-Two Interactive stock slumped in extended trading after cutting its full-year guidance, and Lyft shares also headed south after posting disappointing earnings and active rider figures.

Reporting by Iain Gilbert at Sharecast.com