IEM: Democrats Take House, Republicans Senate

As time ticked down to the first polls closing at 6 p.m. Eastern time Tuesday, investors were gearing up for the prospect of Democratic gains in the midterm congressional elections on Nov. 7. Fundamentals should continue to drive market action over the long run, but a surprise in tonight's results could carry a short-term impact, analysts say. The IOWA ELECTRONIC MARKETS were offering strong odds that Republicans will lose control of the House of Representatives but hold onto the Senate. In afternoon trading, prices on this UNIVERSITY OF IOWA futures market for betting on election results suggested an 82 percent chance Democrats will win the House and only a 31 percent chance Republicans would lose the Senate.