In the long run, US futures rose slightly on Tuesday after a strong market rally, while Reddit trading mania continued to ease.
Dow futures rose 60 points. The S&P 500 futures gained 0.4% and the Nasdaq 100 futures rose 0.4%.
The strong earnings from Amazon and Alphabet helped in the future. Amazon reported almost double the gains of Wall Street estimates; however, the stock movement was tempered by the news that Jeff Bezos will resign as CEO.
Alphabet shares rose 6% in trading after hours after the technology giant reported a 23% increase in revenue and exceeded earnings estimates.
Shares rallied on Tuesday for the next day, with the Dow Jones industrial average gaining over 475 points for the best day in November. Investors have returned to buying shares after the Reddit-fueled stock market shook markets last week. The Dow is up 2.35% this week.
The S&P 500 was up 1.4% and the Nasdaq Composite was up 1.5%.
After a meteoric rise, although apparently synthetic in GameStop last week, caused by a short pressure, the shares fell by over 70% this week. Other Reddit transactions also returned to Earth amid trading restrictions on major brokers.
“The best way to describe today’s stock market action is to ‘reverse the Reddit revolution,'” Jim Paulsen, chief investment strategist at Leuthold Group, told CNBC. “What grew with GameStop came with GameStop.”
“From mid-January 28 to the end of January 29, cycles, including technology, were beaten as the defensive sectors overtook. In the last two days, especially today, this has been reversed,” Paulsen added. .
Investors are also monitoring Washington’s negotiations on another stimulus package. President Joe Biden met Monday with the 10 Republican senators to discuss an alternative aid proposal smaller than his $ 1.9 trillion package.
The earnings season continues Wednesday, with AbbVie, Biogen, Boston Scientific, GlaxoSmithKline and Humana reporting ahead of the opening bell.
Chipmaker Qualcomm, eBay, PayPal and Yum China report earnings after the market closed on Wednesday.
Private salary data for January is published Wednesday at 8:15 a.m. from ADP. Economists surveyed by the Dow Jones expect private sector jobs to rise by 50,000 in January, compared with a loss of 123,000 in December.
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