‘Messy sideways market’ will dominate year, BofA’s Subramanian warns
Nasdaq futures rose in overnight trading on Tuesday, after the technology-focused average gained for the third day in the regular session.
Dow futures fell 23 points. S&P 500 futures gained 0.42% and Nasdaq 100 futures rose 0.95%.
Google-parent Alphabet rose around 9% in extended trading after the company beat on the top and bottom lines for its quarterly results. Alphabet also announced a 20-for-1 stock split.
Chip stock Advanced Micro Devices also gained on strong earnings, while Starbucks dipped following its results. PayPal tanked nearly 18% after hours after issuing disappointing guidance.
On Tuesday, the major average rose for the third day as stocks attempted a comeback from their tumultuous January where the S&P 500 has its worst month since March 2020.
The Dow Jones Industrial Average added more than 270 points, helped by a 4.1% gain in Boeing. The S&P 500 also registered a gain, climbing 0.7%. Bank stocks were some of the best performers on Tuesday.
The Nasdaq Composite rose 0.75% as investors await key technology earnings after the bell and throughout the week.
“The market has strung together a few solid up days,” said Jim Paulsen, Leuthold Group chief investment strategist. “This strong showing is causing more investors to wonder if the correction is over and raising concerns that they could miss out on a nice post-correction rally”
Earnings season continues on Wednesday with key reporting from Meta Platforms, formerly Facebook, and Qualcomm. AbbVie, D.R. Horton and T-Mobile also report earnings on Wednesday.
So far this earnings season, more than 36% of the S&P 500 has reported and more than 78% have topped Wall Street’s expectations.
“While the earnings season began with some disappointments last week, it has become more solid in recent days,” added Paulsen.
On the economic front, private payroll data is set to release at 8:15 a.m. on Wednesday. Economists polled by Dow Jones are expecting 200,000 private jobs were added in January, down from December’s growth of 807,000 private payrolls, according to ADP.
The major averages are coming off of a volatile month, mainly spurred by a pivot in the Federal Reserve. However, some Fed members have have offered reassuring commentary that they do not want their pending rate hikes to disturb the financial markets and that few see any appetite for a 50 basis point hike.