Futures rise on strong results from Alphabet, Amazon; private payrolls data on deck
- Amazon.com Inc edged 0.4% higher as its founder Jeff Bezos would step down as CEO and become executive chairman. The retail giant also reported quarterly sales above $100 billion for the first time.
- More than 80% of reports from S&P 500 companies so far have surpassed analysts' earnings expectations, with 97% of reports from technology companies beating.
US stock index futures rose on Wednesday after strong quarterly showing from heavyweights Alphabet and Amazon ahead of data that is likely to show a rebound in monthly private payrolls.
Alphabet Inc jumped 7% in premarket trading as it benefited from lockdowns that drove retail and other advertisers online.
Amazon.com Inc edged 0.4% higher as its founder Jeff Bezos would step down as CEO and become executive chairman. The retail giant also reported quarterly sales above $100 billion for the first time.
More than 80% of reports from S&P 500 companies so far have surpassed analysts' earnings expectations, with 97% of reports from technology companies beating, according to IBES data from Refinitiv.
Wall Street's main indexes finished sharply higher for a second straight day on Tuesday in a broad-based rally as market participants digested talks over the next round of stimulus.
Democrats in the US Congress on Tuesday voted along the party lines to open debate on a fiscal 2021 budget resolution with coronavirus aid spending instructions, their first steps toward advancing President Joe Biden's proposed $1.9 trillion package without Republican support.
At 6:25 a.m. ET, Dow E-minis were up 34 points, or 0.11% and S&P 500 E-minis were up 14.75 points, or 0.39%. Nasdaq 100 E-minis were up 91 points, or 0.68%.
Videogame retailer GameStop Corp and movie theater operator AMC Entertainment Holdings Inc rose 9% and 6%, respectively, reversing from sharp losses earlier in a social media-driven trading rollercoaster ride.
US Treasury Secretary Janet Yellen is calling a meeting of top officials, including from the Securities and Exchange Commission and the Federal Reserve, this week to discuss market volatility.
"Equity markets are fading the retail scare ... an indication that this still has a long way to run. And run we shall with two beats on earnings from mega-caps Alphabet and Amazon," said Sebastien Galy, senior macro strategist at Nordea Asset Management.
Chipotle Mexican Grill Inc dropped about 4% after the burrito chain missed Wall Street estimates for quarterly profit, hurt by costs related to keeping its business running during the COVID-19 pandemic.
On the economic front, ADP National Employment Report, due at 08:15 a.m. ET (1315 GMT), is expected to show hiring by US private employers rebounded by 49,000 in January after a sharp drop in December. A more comprehensive jobs report is expected on Friday.
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