News Highlights: Dow futures are getting so big Tech Income, incentive stimulate bulls
The Wednesday market minute
- Global equities are increasing their gains and returning to record highs as major technical earnings eruptions and stimulus stakes strengthen markets around the world.
- Amazon reports record sales of $ 125 billion, but news of Jeff Bezos’ “ transition ” holds back early gains: Google parent Alphabet soars like cloud, ad revenue impresses.
- Democratic lawmakers in the Senate appear to be weathering President Joe Biden’s $ 1.9 trillion stimulus over Republican objections in the government’s first major policy effort.
- Treasury Secretary Janet Yellen was reportedly meeting with the heads of the SEC, Federal Reserve and CFTC to discuss last week’s ‘Meme Stock’ rise on Wall Street.
- Shares of GameStop and AMC Entertainment continue to grow as the Reddit army retreats, pulling more than $ 160 billion in value from the Meme stock.
- US stock futures suggest a firmer opening on Wall Street ahead of Humana and AbbVie earnings.
US stock futures rallied for a third consecutive session on Wednesday as a key measure of market volatility plummeted, while Reddit-fueled retail trade continues to decline, while stimulus outlook and corporate earnings support a bullish outlook for equities.
Oil prices also hit new multi-month highs in overnight trading, even as the dollar surged to its highest level since early December as investors bet Democratic lawmakers in the Senate jointly passed President Joe Biden’s $ 1.9 trillion stimulus package. will hire because of Republican objections.
The injection would support an undoubtedly solid earnings season, with more than 80% of reporting S&P 500 companies exceeding Street earnings expectations highlighted by blockbuster profits from major tech groups such as Amazon (AMZN) – Get report and alphabet (GOOGL) – Get report last night and Apple (AAPL) – Get report and Facebook (FB) – Get report last week.
Reports of a crackdown on retail speculative trading that caught the attention of Wall Street last week when stocks like GameStop (GME) – Get report and AMC Entertainment (AMC) – Get report added billions to their market value amid a wave of Reddit-fueled interest, also boosting sentiment.
Treasury Secretary Janet Yellen could meet with the heads of the U.S. Securities and Exchange Commission, the Federal Reserve and the Commodity Futures Trading Commission as early as this week, and many are expecting some form of change to encourage a rerun of the market of last week. – troubling meeting.
GameStop shares, which have lost $ 27 billion in value since their market peak last Thursday, were marked lower again during hours trading, while losses for the so-called ‘meme shares’ – including AMC Entertainment, Blackberry (BB) – Get report, Koss Corp (KOSS) – Get report and others were estimated at $ 167 billion.
However, US stocks appear to be posting modest gains on Wednesday, with contracts pegged to the Dow Jones Industrial Average indicating a 65-point rise and those pegged to the S&P 500 priced at a 12-point advance.
The CBOE’s benchmark volatility meter, the VIX, which peaked last week the most in nearly a year amid the Reddit-powered short squeeze, was down 19% at 24.6 points during the session.
Nasdaq Composite futures, meanwhile, suggest an opening bubble gain of 80 points, thanks in part to a 7% rise ahead of the market for Google parent Alphabet, which posted a profit of $ 22.30 a share in the fourth quarter last night on $ 59 revenue. , 9 billion.
However, Amazon stock was valued 0.36% lower at $ 3,367.73 each following the surprise announcement that founder and CEO Jeff Bezos will step down later this year as he transfers to the role of executive chairman in favor of Amazon Web Services boss Andy Jassy.
That news took some of the shine from a record fourth quarter, with revenues rising to $ 125.6 billion and earnings to $ 14.09 per share.
In European markets, stronger-than-expected results in the fourth quarter and reports that former European Central Bank President Mario Draghi could be sued to become Italy’s next prime minister gave stocks an early boost, causing a weak reading for the economy. activity in January and the slow roll-out of coronavirus vaccines in the region.
The Stoxx 600 was 0.6% higher in early trading, boosted by a 2.25% rise for the FTSE-MIB index in Italy, while the UK’s FTSE 100 rose 0.4% during early trading in London.
Overnight in Asia, Japan’s Nikkei 225 closed 1% higher at 28,646.50 points, while the region-wide MSCI ex-Japan benchmark added 0.6% at the end of trading.
Oil prices also soared, testing their highest levels in 11 months, after the American Petroleum Institute reported a larger-than-expected decline in domestic crude oil inventories of 4.3 million barrels in the week ending Jan. 29.
WTI crude oil futures for March delivery were seen 35 cents higher at $ 55.11 a barrel, while Brent contacts for April delivery, the global benchmark, were 47 cents higher at $ 57.93 a barrel.
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