Wall Street markets are looking weak Wednesday morning after Democrats seized control of the U.S. House of Representatives in midterm elections and came close to taking the Senate with two race tallies outstanding.

In the House, Democrats won more than two dozen seats by early Wednesday morning, setting up a sharply divided government.

Democrats went into the election needing six seats to win an effective majority in the Senate. They won three — Ohio, Pennsylvania and Rhode Island. Early Wednesday morning, they picked up a seat in Missouri. Still undecided were Senate races in Montana and Virginia, both of which Democrats would have to win in order to control the chamber.

Though markets had largely expected the Democrats to take control of the House, the Democrats weren’t widely expected to take over the Senate.

Here at home, the Canadian dollar opened at US88.50¢, down 0.07 of a cent from Tuesday’s close.

In earnings news, paper maker Cascades Inc. today reported a third-quarter profit of $10 million, up from a year-earlier $3 million on a raft of improvements across its businesses.

Furniture retailer The Brick Group Income Fund reported flat third-quarter profits at $11.7 million as an expansion of its delivery and distribution network dragged on earnings.

National Semiconductor announced late Tuesday that it has lowered its financial targets due to sluggish shipments to cellphone makers.

Federated Department Stores reported fiscal third-quarter earnings that fell from year-earlier levels, while sales increased, and indicated that fourth-quarter earnings would miss expectations.

Toronto stocks could get a lift from a jump in oil pirces. Crude-oil prices rose 26¢ to US$59.19 a barrel ahead of weekly U.S. oil inventory data, with analysts mixed on whether to expect a build or draw in crude supplies.

European markets were mostly down in Wednesday trading, London’s FTSE 100 off 20.4 points, 0.33%, to 6,223.6, Germany’s DAX losing 31.41 points or 0.49% to 6,330.55 and the Paris-based CAC 40 dropping 17.81 points or 0.33% to 5,419.97.

Tokyo’s benchmark Nikkei 225 index fell 177.67 points, or 1.08%, to finish at 16,215.74 points.

In Hong Kong, the benchmark Hang Seng Index fell 128.07 points, or 0.7%, to close at 18,811.24.

Toronto stocks drifted lower Tuesday on weakness in the energy and information technology sectors.

The S&P/TSX composite index fell 23.07 points, or 0.19%, to 12,310.21.

Six of the 10 TSX main sub-groups were down, with the energy sector falling 0.89%.

Nortel Networks shares fell 28¢, or 10.37%, to $2.42, after the telecom-equipment company posts a net loss of US$99 million.

The S&P/TSX Venture composite index fell 15.13 points, or 0.57%, to 2,638.82.

In New York, strong corporate earnings news boosted the markets.

The Dow Jones industrial average rose 51.22 points, or 0.42%, to 12,156.77, after reaching a record high of 12,196.32 during intra-day trading.

The Nasdaq composite index was up 9.93 points, or 0.42%, at 2,375.88, while the S&P 500 index was up 3.06 points, or 0.22%, at 1,382.84.