Gridlock Won & Markets Cheer

I. Why Wall Street Is Cheering the Blue Sweep

Ahead of Tuesday's midterm elections, we warned that a Democratic sweep of Congress could deliver a cold shower to Wall Street. It still could, but it didn't do so today. Democrats captured both chambers of Congress, flipping seven Republican-held Senate seats, including historic victories in Texas, Kansas, and South Carolina. Financial markets put a positive spin on the blue wave.