* U.S. vote seen ending uncertainty for markets
* Election could open way to tackle "fiscal cliff"
* Energy, materials sectors lead gains
* Dow up 1.1 pct, S&P up 0.9 pct, Nasdaq up 0.5 pct
By Caroline Valetkevitch
NEW YORK, Nov 6 U.S. stocks climbed on Tuesday
on speculation the U.S. presidential election will produce a
clear winner, removing a major source of uncertainty that has
Investors awaited results of a close race that will set the
country's course for the next four years on spending, taxes,
healthcare and other policies.
"I think it's relief that hopefully the election will be
over," said Fred Dickson, chief market strategist at D.A.
Davidson & Co. in Lake Oswego, Oregon.
"Clients at this point have built cash ahead of the
elections, and it looks like the market is anticipating a
post-elections surge knowing the election is finally over."
Polls showed President Barack Obama and Republican
challenger Mitt Romney in a tight race, with a few battleground
states expected to decide the winner. The
outcome will affect industry sectors from energy to financials.
The Dow Jones industrial average was up 144.06
points, or 1.10 percent, at 13,256.50. The Standard & Poor's 500
Index was up 12.05 points, or 0.85 percent, at 1,429.31.
The Nasdaq Composite Index was up 15.97 points, or 0.53
percent, at 3,015.63.
Stocks began adding to gains around 11:30 a.m. in New York,
shortly after the close of European markets. E-mini futures
contracts, a contract based on the S&P 500 index, also
jumped at that time.
"Around 11:40 a.m., a huge order of contracts in e-mini
futures went through, which looks like one big order. That
caused a spike in our market," said James Dailey, portfolio
manager at TEAM Asset Strategy fund in Harrisburg, Pennsylvania.
Gold and oil futures also gained. Among S&P 500 sectors
energy led gains along with materials and industrial shares. The
S&P 500 energy index was up 1.5 percent. Defense shares
were also gaining, with shares of Raytheon up 2.4
percent at $57.79.
Investors will also closely watch races in the Senate and
House of Representatives that could affect the "fiscal cliff,"
or $600 billion in spending cuts and tax increases that are set
to be automatically triggered at the end of the year.
The U.S. fiscal standoff threatens to bring on another
recession unless a deal is reached between Congress and the
"There's been a lot of talk that once the election is
decided, no matter how it went, just to the have the uncertainty
over would be good for the market. A number of people have
bought into that and are trying to buy into tonight's news,"
said Rick Meckler, president of hedge fund LibertyView Capital
Management LLC in Jersey City, New Jersey.
The gains came despite more disappointing results from U.S.
companies, with S&P 500 earnings estimated down 0.6 percent for
the third quarter from a year ago, Thomson Reuters data showed.
Express Scripts Holding Co plunged 12.4 percent to
$55.07 and was the biggest drag on the Nasdaq after the pharmacy
benefits manager said analysts' forecasts for its 2013 results
were too aggressive.