Stock futures add to gains on relief bill optimism
Traders will get the ADP report on private sector hiring along with the ISM's report on the services sector
U.S. equity futures are trading higher following a broad rally on Wall Street.
The major futures indexes suggest a gain of 0.1% on the Dow and a gain of 0.6% for the Nasdaq.
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With Democrats and Republicans remaining far apart on support for President Biden's $1.9 trillion stimulus package, investors are betting that the administration will opt for a reconciliation process to get the legislation through Congress.
Traders will get the first of this week's labor-related reports with ADP's report on private sector hiring. Economists are looking for a gain of 49,000 jobs, an improvement from the 123,000 jobs lost in December.
Also, we’ll get the Institute for Supply Management’s non-manufacturing PMI for January. Expansion in the services sector is expected to cool slightly to a reading of 56.8 after December’s much higher-than-expected reading of 57.2. A reading above 50 indicates expansion.
In Europe, London's FTSE added 0.3%, Germany's DAX rose 0.7% and France's CAC gained 0.3%.
In Asia, Tokyo's Nikkei 225 rose 1%, the Hang Seng in Hong Kong added 0.2% and China's Shanghai Composite index fell 0.5%.
Amazon founder Jeff Bezos revealed plans Tuesday to step down as CEO of the e-commerce giant later in 2021.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 201.70 | -0.91 | -0.45% |
Amazon announced its transition plan alongside fourth-quarter earnings results. The company generated $125.6 billion in quarterly revenue, marking the first time its results surpassed the $100 billion sales threshold in a single quarter. Amazon shares are slipping 0.3% in the premarket.
Shares in GameStop are giving up more than 3% in the premarket, while AMC Entertainment are down more than 6%.
The stocks have been caught up in a speculative frenzy by traders in online forums and on social media who seek to inflict damage on Wall Street hedge funds that have bet these stocks would fall.
GameStop plunged 60% to $90 a share, and AMC Entertainment lost 41.2% to $7.82 a share in the last session.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP. | 26.44 | -0.15 | -0.56% |
| AMC | AMC ENTERTAINMENT | 4.36 | -0.12 | -2.68% |
The S&P 500 index rose 1.4% to 3,826.31. The Dow Jones Industrial Average gained 1.6%, to 30,687.48. The tech-heavy Nasdaq composite climbed 1.6%, to 13,612.78.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 43389.6 | -55.39 | -0.13% |
| SP500 | S&P 500 | 5893.62 | +23.00 | +0.39% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18791.806377 | +111.69 | +0.60% |
After the bell, Alphabet’s quarterly profit rose 43% to $15.2 billion, or $22.30 per share, compared with the average estimate of $10.895 billion, or $15.95 per share. Shares jumped 6% in after-hours trading.
ALPHABET SHARES JUMP AS AD, CLOUD SALES SOAR AMID PANDEMIC
Earnings season rolls on Wednesday morning with a focus on health care when Humana, AbbVie, Boston Scientific and Biogen post quarterly results. In the afternoon attention will turn to MetLife, Qualcomm and PayPal.
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In other trading, benchmark U.S. crude oil gained 34 cents to $55.10 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, picked up 50 cents to $57.96 per barrel.
The Associated Press contributed this this article.