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Will Stocks Gain After the Elections? & Earnings from CVS, LLY, HEAR

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On today’s episode of Free Lunch, Ryan McQueeney chats with Dave Bartosiak about the near-term outlook for stocks after the midterm elections and the earnings outlook for Turtle Beach ahead of its report. The host also recaps earnings results from CVS, Eli Lilly, and Regeneron.

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Free Lunch is presented by Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook Live, Twitter, Ustream, and more.

U.S. stocks moved modestly higher in morning trading Tuesday, the same day millions of citizens are heading to the polls to cast votes in the midterm elections.

Wall Street appears to be handicapping a Democratic shift in the House of Representatives, as most opinion polls are calling for the party to take control of the chamber. Those same polls are also predicting that the Republicans will retain their lead in the Senate, meaning we could soon have a split Congress.

Interestingly enough, stocks have historically performed better during periods of Congressional gridlock, and if anything, investors will be happy to move past the uncertainty of the elections themselves. Plus, many of the same fundamental tailwinds and headwinds affecting equity prices will remain, regardless of the federal government’s s partisan makeup.

And as the votes roll in, so too are the Q3 earnings reports. This morning was a busy session for pre-market reports in the broader medical space, with the likes of CVS (CVS - Free Report) , Eli Lilly (LLY - Free Report) , and Regeneron (REGN - Free Report) filing before the bell.

Results from these companies were relatively positive, although mixed in some areas. CVS topped estimates on both lines and said its merger with Aetna would be complete by Thanksgiving, Eli Lilly surpassed EPS projections, and Regeneron crushed profit expectations but missed revenue estimates.

Ryan covers all of these reports and gives his perspective on how Wall Street is feeling about the midterms on today’s show!

Later, he checks in with Dave Bartosiak to continue chatting about the near-term outlook for stocks after the midterms. Dave starts by showing an interesting technical trend that has developed in the Nasdaq (QQQ - Free Report) , where bulls and bears have battled to keep the stock above and below certain moving averages and indicators.

Dave also suggests that part of this battle has to do with the event risk of the midterms, so he explains how and why Wall Street prices in risk when facing these uncertainties.

Finally, Dave highlights Turtle Beach (HEAR - Free Report) , which is scheduled to announce its latest quarterly results after the bell. He touches on the sentiment surrounding the stock and recommends a specific options play for those who are optimistic about the gaming headset maker. Make sure to check out the show to hear more!

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