Stocks are looking to open higher Wednesday on news that the more business-friendly Republicans have taken control of both houses of the U.S. Congress in yesterday’s mid-term elections. It’s expected that drug stocks will benefit from the GOP victory, as will defense firms and energy stocks.

Also, last night embattled Securities and Exchange Commission chairman Harvey Pitt resigned.

Traders are now just awaiting a decision on interest rates from the U.S. Federal Reserve Board today. The market is looking for a 25 basis point cut, but estimates range from no cut to a 50 bps move.

In economic news, the value of building permits fell for a second straight month in September. Builders took out $3.7 billion worth of permits, down 6.9% from August.

European markets are mixed this morning amid news that German factory orders came in weaker than expected. It was also reported that insurer Swiss Life has ousted its CEO, Roland Chlapowski. But, BMW reported that its profits rose in the third quarter. On these cross-currents, the FTSE is down four points to 4,142. The CAC 40 is up two ticks to 3,249. And, the DAX is down five points to 3,346.

Overnight in Asia, the Nikkei gained 16 points to 8,953. The Hang Seng rose 119 points to 9,774.

In M&A news, it is being reported that Pfizer has received a couple of bids for its Adams candy business. The bidders are reputedly Cadbury Schweppes plc and Nestle SA, with a price tag in the US$4 billion range.

In other news, the TSX has priced its own IPO at $18 per share. It expects to close the deal on November 12.

In earnings news, Canadian Natural Resources reported net earnings of $117 million, compared with $81 million for the third quarter of 2001 and $145 million in the previous quarter.

Linmor Inc. reported that its latest quarterly net loss was $1,142,158.