Nasdaq Extends Rally on Alphabet and AMD Earnings

  • Alphabet rises on bullish sales and stock split
  • AMD Leaps on Strong Outlook and Earnings; chip manufacturers elevators
  • PayPal slips on weak first-quarter outlook
  • Starbucks down after lowering its profit forecast
  • Indices up: Dow 0.04%, S&P 0.53%, Nasdaq 0.78%

Feb 2 (Reuters) – The Nasdaq was expected to extend gains for the fourth consecutive session on Wednesday after a rocky start to the year as shares of parent company Alphabet and chipmaker Advanced Micro Devices surged after strong results quarterly.

Alphabet Inc (GOOGL.O) rose 8.2% after reporting record quarterly sales on Tuesday and said it planned to undertake a 20-to-one stock split. Read more

The stock split should make it more attractive to retail investors, said Neil Wilson, chief market analyst for Markets.com, adding that Alphabet’s earnings will support a return of confidence in battered tech names.

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“After all the January tumult, strong earnings can be a catalyst for gains.”

Meta Platforms Inc (FB.O), the parent company of Facebook, which is expected to report results on Wednesday, rose 1.4%, and Amazon.com Inc is expected to report Thursday 1.1%.

Last month, the tech-heavy Nasdaq (.IXIC) fell 19% from its all-time high in November as investors dumped popular growth stocks on the prospect of faster-than-expected rate hikes. foreseen.

Traders are betting on five rate hikes this year after hawkish comments from the US Federal Reserve last month.

Advanced Micro Devices Inc (AMD.O) climbed 8.5% after the company on Tuesday forecast 2022 revenue to beat expectations, following strong quarterly demand for its semiconductors, despite global supply challenges. Read more

Other chipmakers including Nvidia Corp (NVDA.O), Qualcomm Inc (QCOM.O) and Micron Technology Inc (MU.O) rose nearly 3.6% each.

“Some will see this (Alphabet’s results) as a positive sign, the next leg of the bull market as structural winners continue to impress,” said Russ Mold, chief investment officer of AJ Bell.

As of 10:04 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 15.25 points, or 0.04%, at 35,420.49, the S&P 500 (.SPX) was up 24.05 points, or 0.53%, to 4,570.59, and the Nasdaq Composite (.IXIC) gained 111.20 points, or 0.78%, to 14,457.20.

Private sector payrolls in the United States unexpectedly fell by 301,000 jobs in January as the resurgence of COVID-19 infections disrupted business activity, the ADP’s National Employment Report showed. . Read more

The fuller jobs report is due Friday.

Of the companies that have reported results so far this earnings season, 78.8% have beat analysts’ earnings estimates, compared to an average of 84% over the past four quarters. according to data from Refinitiv. Read more

PayPal Holdings Inc (PYPL.O) fell 24.8% after forecasting first-quarter revenue and profit well below expectations. Read more

Starbucks Corp (SBUX.O) fell 0.8% as the coffee chain lowered its profit estimates this year and said it would raise menu prices in 2022 and cut spending to offset soaring food prices. labor and material costs. Read more

Falling issues outnumbered advances by a 1.18-to-1 ratio on the NYSE and a 1.89-to-1 ratio on the Nasdaq.

The S&P index recorded nine new 52-week highs and one new low, while the Nasdaq recorded 29 new highs and 13 new lows.

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Reporting by Bansari Mayur Kamdar and Medha Singh in Bengaluru; Editing by Shounak Dasgupta

Our standards: The Thomson Reuters Trust Principles.

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