Keeps You Updated!

Nasdaq futures rise after its third day of gains, Alphabet pops on strong earnings

Nasdaq futures rose in overnight trading on Tuesday, after the technology-focused average rose for the third day in the regular session.

Dow futures fell 40 points. The S&P 500 futures rose 0.25% and the Nasdaq 100 futures rose 0.75%.

The Google parent alphabet rose more than 7% in expanded trading after the company hit the top and bottom line for its quarterly results. Alphabet also announced a 20 to 1 share split.

The chip share Advanced Micro Devices also rose on strong earnings, while Starbucks and General Motors fell after their results. PayPal went back 11% after hours of issuing disappointing guidance.

On Tuesday, the big average rose for the third day as stocks attempted a comeback from their tumultuous January, with the S&P 500 having its worst month since March 2020.

The Dow Jones Industrial Average added more than 270 points, aided by a 4.1% increase in Boeing. The S&P 500 also recorded an increase of 0.7%. Bank shares were some of the best results on Tuesday.

Nasdaq Composite rose 0.75% as investors await key technology earnings after the clock and all week.

“The market has put together a couple of solid up-days,” says Jim Paulsen, Leuthold Group’s investment strategist. “This strong view is causing more investors to wonder if the correction is over, raising concerns that they could miss out on a nice rally after correction.”

The earnings season continues on Wednesday with key reporting from Meta Platforms, formerly Facebook and Qualcomm. AbbVie, DR Horton and T-Mobile also reported earnings on Wednesday.

So far this earnings season, more than 36% of the S&P 500 has reported, and more than 78% have exceeded Wall Street expectations.

“While the earnings season began with some disappointments last week, it has become more solid in recent days,” Paulsen added.

On the economic front, private wage data will be released at. 8:15 Wednesday. Economists polled by the Dow Jones expect 200,000 private jobs were added in January, down from December’s growth of 807,000 private payrolls, according to the ADP.

The big averages come from a volatile month, mainly spurred by a pivot in the Federal Reserve. However, some Fed members have made a reassuring comment that they do not want their pending rate hikes to disrupt the financial markets and that few see any appetite for a 50 basis point increase.

Leave a Reply

Your email address will not be published. Required fields are marked *