Tech stock futures climb after strong earnings from Google parent

Futures linked to the S&P 500 added 0.8%, indicating that the broad-market index could extend its rally to a fourth day. It is up 2.6% so far this week. Nasdaq-100 futures rose 1.5% after the opening bell, suggesting gains for tech stocks. The Dow Jones Industrial Average futures rose 0.1%.

The stock has staged a recovery in recent days after the worst month since the pandemic began. Signs of Federal Reserve officials planning to tighten monetary policy faster than previously expected to fight inflation weighed on sentiment and prompted a sell-off in growth stocks. Major indices made some losses this week.

“The focus has clearly turned to earnings, we’ve seen strong results from big tech companies. But at some point, we may have a sense of going back to macro data and the Fed — we think we’ll oscillate between these two points,” said Luke Phillips, head of investments at SYZ Private Banking. For, it means more volatility.”

With earnings season nearly halfway through, the number of companies that beat Wall Street’s expectations on sales and profits is above average, though less than previously in recovery, according to a Deutsche Bank analysis.

Shares of Google’s parent company, Alphabet, gained more than 10% in off-hours trading, after up a third in profit last quarter. The search giant also announced a 20-for-1 stock split. Chip maker Advanced Micro Devices rose more than 11% after revenue and analysts reported a sales outlook above forecasts, as well as sending shares of Xilinx, a semiconductor firm that it plans to gain closer to 11%. Used to be.

“This has helped turn things around. It reminds people that earnings growth is not just about the gravy of the future and tomorrow. Some of these companies are delivering today.”

PayPal fell 16% after the company posted lower income and higher expenses. Square parent Block followed a 7% drop. Starbucks fell nearly 3% as it said rising costs would continue to impact its profits in the coming months.

Meta Platforms, formerly known as Facebook, Spotify, T-Mobile US and Qualcomm, are due to report earnings after the market closes on Wednesday.

The yield on the benchmark 10-year Treasury note declined to 1.791% from 1.799% on Tuesday.

Oil prices were stable ahead of Wednesday’s OPEC meeting, where major producers are expected to discuss increased production. Analysts said some in the group are already struggling to meet their quota, which is likely to support the prices. Global benchmark Brent crude was trading 0.3% lower at $88.93 per barrel.

A data release from ADP on private sector employment in January is expected at 8:15 a.m. ET. Investors are waiting for more information on the state of the labor market, after a report on Tuesday showed job opportunities rose and the job loss rate remained high in December.

Overseas, the pan-continental stokes Europe 600 climbed 0.6%. Julius Baer fell 6.5% after the Swiss bank reported higher operating expenses and provisions.

In Asia, Chinese markets were closed for the Lunar New Year holiday. Japan’s Nikkei 225 climbed 1.7%, buoyed by strong earnings reports from financial firm Nomura and electronics company Keynes.

This story has been published without modification to the text from a wire agency feed