4.02pm: US market closes in the green
The US indices ended higher at the end of a volatile day as investors await quarterly earnings from Alphabet later in the evening.
At closing, the Dow Jones Industrial Average gained 0.7% at 35,404, while the Nasdaq Composite rose by 0.7% at 14,346, and the S&P increased by 0.6% at 4,546.
“Now that the market isn’t quite so obsessed with what the Fed is saying, and with the March FOMC meeting still some way off, it looks like the focus is back on the growing economy and improving earnings," said Chris Beauchamp, chief market analyst at online trading platform IG. "If tonight’s numbers from Alphabet and ones from Amazon later in the week can add to that then investors will most likely keep on buying the dip.”
12.05pm: US stocks recover
US equities bounced back into the green midday on Tuesday after a sluggish start as investors digested fresh data on employment and manufacturing, although both indicated intensified inflationary pressures.
Around noon, the Dow Jones Industrial Average had gained 0.1% or 35 points at 35,166, while the tech-heavy Nasdaq Composite and the S&P 500 were up by 0.3% and 0.1%, respectively.
The ISM prices paid manufacturing activity index soared from 68.2 to 76.1, while the Job Openings and Labour Turnover Survey (JOLTS) data showed the labor market remains tight as job openings rose to 10.93 million, higher than the consensus estimate of 10.3 million.
“Pricing pressures are still ascending at a pace that should concern the Fed and wage pressures are only going to get hotter as the number of job openings increase,” said Edward Moya, senior market analyst, The Americas, OANDA.
He added: “Wall Street was starting to lean towards a 25-basis point increase in March, but that won’t remain the base case if wage pressures and prices paid continue to soar.”
Moya noted that for risk appetite to reassert itself, investors need to be convinced that the Fed will not become too aggressive in tightening policy.
11.00am: Proactive North America headlines:
Tesla surges on Credit Suisse upgrade as EV maker ‘ticks all the boxes’
Lion Copper and Gold inks deal to spin out its Butte Valley property option in Nevada
ION Energy to join forces with Aranjin Resources on exploration joint venture in Mongolia
Canaccord Genuity (TSX:CF, LSE:CF) resumes coverage of Karora Resources with a 'Buy' rating and a C$6.25 target price
Skye Bioscience reports potential neuroprotective benefit of SBI-100 in preclinical glaucoma model
SPYR (OTCQB:SPYR) Technologies says subsidiary Applied Magix introduces the MagixBlock USB DataBlocker product
ME2C Environmental (OTCQB:MEEC) says awarded new business from mercury emissions capture technology licensee
Pathfinder Ventures (TSX-V:RV) plans to aggressively add to its three operating RV resorts under the Pathfinder Camp Resorts brand in 2022
Talon Metals hits nickel-copper mineralization outside Tamarack resource area once again, new drill results reveal
Globex Mining Enterprises sells recently staked Des Herbiers uranium project in Quebec
PharmaDrug submits US provisional patent application for cepharanthine to treat prostate cancer
PyroGenesis confirms submission of C$95M to 115M cost estimate for 36 plasma torches to top international producer of iron ore pellets
Healixa (OTC:EMOR) says Richard Alloway II will join its Advisory Board, effective immediately, demonstrating its commitment to supporting truly sustainable communities
Nextech AR strikes partnership agreement with B2B technology platform and marketplace DesignerInc
Vicinity Motor signs sales and marketing agreement with Skydome Auto and Truck Centre, including an initial order for 50 VMC 1200 Class 3 electric trucks
Tiidal Gaming says Sportsflare division to provide odds and data solutions in partnership with BOA Gaming
Mydecine submits pre-IND briefing package to FDA for MYCO-001 smoking cessation clinical trial
Lumina Gold hires engineering giant Ausenco to lead pre-feasibility study for Cangrejos project in Ecuador
Fobi AI (TSX-V:FOBI, OTCQB:FOBIF) launches PassPro, an enterprise-grade wallet pass Software as a Service platform
Manganese X Energy completes final processing metallurgical phase for Battery Hill PEA, highlighted by novel purification process
Psyched Wellness (CSE:PSYC, OTCQB:PSYCF) launches new logo, branding and website ahead of its industry-first Amanita Muscaria mushroom product roll out
Anglo Pacific target price hiked by RBC Capital Markets
O3 Mining outlines next steps for its Marban project in Québec after positive infill drill program
FPX Nickel kicks off scoping study assessing potential for producing low cost, low carbon nickel for EV market from Baptiste project
CULT Food Science completes strategic investment in cell-based and gelatin ingredient pioneer Jellatech
World Copper appoints Nolan Peterson to the duties and title of president in addition to his current role as chief executive officer
Alternus Energy announces appointment of David Farrell to newly created role of chief commercial officer
XPhyto executes Covid-ID lab sales contracts with German test clinics and pharmacies in multi-product rollout strategy
Kidoz reports strong fourth-quarter 2021 network activity
9.45am: US stocks mixed at open
US benchmarks started mixed and jittery in New York on the first day of the new month.
The Dow Jones Industrial Average added around 37 points at 35,168 in early deals.
The S&P 500 added around one point at 4,516. The tech-laden Nasdaq though dropped 16 points to stand at 14,223.
It comes after January this year was the worst trading month for the S&P and Nasdaq since March, 2020, when the pandemic took hold.
Traders were put off stocks last month as they tried to digest the implications of the US central bank's shift towards tightening this year.
On the corporate front, oiler Exxon Mobil Corp today saw its shares add over 2% as
it reported it had earned $2.05 per share in its Q4, beating consensus of $1.93. Revenue fell below Wall Street forecasts, while Exxon also announced a new $10 billion stock buyback program.
United Parcel Service (NYSE:UPS) shares gained over 13% after the multinational shipping titan beat estimates with its quarterly results, issued upbeat guidance and unveiled a 49% dividend increase.
6.35am: US shares poised for lower start
US stocks look set to edge lower on the first session of February following a surprisingly strong end to the turbulent previous month, as investors await manufacturing data and earnings from more big-name companies.
Futures for the blue-chip Dow Jones Industrial Average futures were 0.3% lower, as were contracts for the tech-laden Nasdaq-100, while those for the broader S&P 500 index shed 0.4%.
Traders are hoping that the volatile market performance seen in January - which was the S&P 500’s worst month since March 2020 - can be put behind them. Markets slumped last month as investors worried that the Federal Reserve is getting set to tighten policy just as economic growth seems to be slowing.
Data on activity in the US manufacturing sector are due at 10.00am ET, with the Institute of Supply Management survey expected to show factory activity continued to rise in January, but at a moderating pace.
Investors are looking to earnings for some clarity on the impact of heightened inflation and lingering coronavirus (COVID-19) pandemic.
On the corporate diary on Tuesday, United Parcel Service (NYSE:UPS) and Exxon Mobil are among those reporting ahead of the market open, with Alphabet set to post earnings after the market closes, alongside General Motors, PayPal and Starbucks.
Peter Garnry, head of Equity Strategy at Saxo Bank commented: "The Nasdaq 100 has seen EPS grow 5% q/q in Q4 and revenue increase by 16.7% compared to a year ago highlighting that US technology companies still offer a rare pocket of high growth.
"Equity valuations on Nasdaq 100 companies are still elevated and the overall downside risks persist in US equities due to tightening financial conditions, but the earnings season is showing why the US technology sector still has a place in the portfolio during inflation."