4.10pm: Stocks end in the green
US markets edged higher at closing for the fifth day in a row as investors continued to weigh fresh numbers of corporate earnings --working as a catalyst in stimulating the volatile equities.
At closing, the Dow Jones Industrial Average gained 0.2%, or 95 points, at 35,501, the Nasdaq Composite was up 0.5% at 14,417, while the S&P 500 added 0.6% at 4,573.
Investors are now eyeing reports from major tech companies – including Meta and Spotify– due later tonight.
12.05pm: Stocks waiver amid tech earnings
US indices were mixed around midday on Wednesday as disappointing ADP private payroll figures offset strong earnings from leading tech from Alphabet Inc (NASDAQ:GOOG).
At noon, the Dow Jones Industrial Average had dropped by 12 points, a flatline change in percentage terms, at 35,393, alongside the Nasdaq Composite which shed 0.2%, but the S&P 500 index held gains of 0.2%.
Despite the mixed performance, Craig Erlam, senior market analyst, UK and EMEA, OANDA, said: “We've seen a decent rebound off the January lows and that only appears to have accelerated this week which will come as a huge relief to investors after a rather turbulent start to the year.”
“And coming at a time when so many rate hikes are now priced in for a variety of central banks, it's possible that peak-tightening fear is behind us," he added.
Erlam also noted that expectations for Friday's key US jobs report are already very low and today's ADP may reduce them further but said it doesn't really change the outlook for interest rates or the economy.
On the corporate front, after Alphabet's strong showing, other Nasdaq-listed tech giants including Meta, Spotify, and Qualcomm are expected to release their earnings later today.
11.00am: Proactive North America headines:
Heritage Cannabis CEO says 'strong positive response' to products will drive sales and growth in 2022
Cabral Gold says trenching extends Machichie mineralized zones and returns impressive gold assay results at Cuiú Cuiú in Brazil
Viscount Mining announces results of its exploration drill targets on Passiflora in Colorado
World Copper expects Escalones PEA in the 'near future' as it issues one year anniversary update
ElectraMeccanica (NASDAQ:SOLO) to begin delivery of SOLO Cargo EV to fleet and commercial customers in 2Q 2022
Marble Financial inks licensing agreement with 8Twelve Financial Technologies for its Connect API and Inverite open-banking software
Blue Sky Uranium discovers additional uranium-vanadium from step-out drilling at Ivana Deposit in Argentina
My Size announces appointment of Javier Brandwain as its first-ever chief commercial officer to accelerate revenue growth
Nextech AR launches beta version of metaverse app ARitize Maps
Lifeist Wellness sharpens focus on business-to-business recreational cannabis and nutraceuticals
Universal Ibogaine kicks off development plans for its Kelburn facility in Manitoba, Canada
Hapbee Technologies Inc (TSX-V:HAPB, OTCQB:HAPBF) partners with Strava, one of the world’s most engaged community of athletes to host a sponsored challenge
TRACON says National Cancer Institute initiates randomized Phase 2 trial of TRC102 for stage III non-squamous non-small cell lung cancer
Altamira Gold says first three holes at Santa Helena copper-gold project have hit porphyry style mineralization
Wellbeing Digital Sciences (NEO:MEDI.AQN, OTCQB:KONEF) says its subsidiary KGK Science expects significant growth in 2022
Hawkmoon Resources says its common shares have been approved to commence trading today on the OTCQB Venture Market
Empower Clinics appoints Dr Tyler Coupal as its first British Columbia Medical Director
Group Eleven Resources kicks off drilling at Stonepark project as it plans hole at its Tullacondra prospect, Ireland
FansUnite says its American Affiliate division now active in Louisiana sports betting market
Bragg Gaming appoints accomplished iGaming executive Lara Falzon to the new position of president and chief operating officer
American Manganese poised to add China to its global patent portfolio
Else says KeHE to expand distribution of Else Kids Nutrition product line with four new flavors to potentially 30,000 stores
i-80 Gold hails more positive drill results from South Pacific Zone at its Granite Creek project, Nevada
Canntab Therapeutics closes non-brokered private placement of secured convertible debentures for gross proceeds of $1,312,000
Delta 9 Cannabis enters into binding commitment letter with connectFirst Credit Union Ltd for $32 million in credit facilities
9.45am: US stocks start ahead
US benchmarks started in positive territory on Wednesday with tech stocks in focus as the Nasdaq has gained for the last three days in a row after the January sell-off.
In New York, the Dow Jones Industrial Average gained around 53 points in early deals to stand at 35,458. The broader-based S&P 500 advanced around 19 at 4,567.
The tech-laden Nasdaq Composite Index added 93 points to go to 14,439.
Alphabet shares zipped up over 9% on the day as the Google owner announced strong earnings and a surprise 20:1 share split.
Conversely, PayPal (NASDAQ:PYPL) shares plunged over 23% after the company's fourth quarter earnings missed analyst expectations and the outlook was downgraded, in part, blamed on inflation.
Meanwhile, private payroll data from ADP fell by 301,000 for January, which was down from December’s growth of 807,000. Economists had been expecting 200,000 private jobs to have been added last month.
6.30am: US shares set for further gains
US stocks look set for further gains after a strong start to February led by the Nasdaq as tech stocks got a boost after Google parent Alphabet Inc (NASDAQ:GOOG) reported a surge in profit.
Nasdaq-100 futures were 1.2% higher on Wednesday, while contracts for the broader S&P 500 index added 0.5%, although those for the Dow Jones Industrial Average were fairly flat after rising 0.8% on Tuesday.
Stocks have staged a recovery in recent days after a January performance which was the worst month since the coronavirus (COVID-19) pandemic began.
Signals from the Federal Reserve of plans to tighten monetary policy faster than previously expected to fight spiraling inflation weighed on sentiment and prompted a sell-off in growth stocks last month, but those losses are being recouped this week.
Much will depend, however, on Friday's always crucial monthly US non-farm payrolls report. Ahead of that key data release, ADP will report on private-sector employment in January at 8.15am ET today. A JOLTS report on Tuesday showed that job openings rose and the quit rate remained high in December.
Traders also have their eyes on the latest corporate earnings season, which is now about halfway through, with the number of companies that have beaten Wall Street’s expectations on sales and profit above average, although lower than earlier in the recovery, according to analysis from Deutsche Bank.
Shares of Alphabet surged over 10% in off-hours trading on Tuesday after the Google owner's profit rose by a third in the last quarter. The tech giant also announced a 20-for-1 stock split.
But PayPal (NASDAQ:PYPL) shares tumbled close after the company posted lower earnings and higher expenses.
Elsewhere, oil prices were stable ahead of Wednesday’s OPEC meeting, where major producers are expected to discuss an output increase. Some in the group are already struggling to deliver their quotas, which will likely support prices, analysts said.