- US stocks closed mixed as investors digested corporate earnings and progress towards economic stimulus.
- Alphabet and Amazon reported earnings on Tuesday evening that beat analyst forecasts and helped dictate index-wide trading on Wednesday.
- President Biden reaffirmed his support for targeted $US1,400 stimulus checks.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Major US stock indexes closed mixed on Wednesday as investors continued to digest fourth-quarter corporate earnings and progress on President Biden’s $US1.9 trillion stimulus proposal.
Earnings from mega-cap titans Amazon and Alphabet exceeded analyst projections by a sizable amount, and Amazon posted its first quarter with revenue of more than $US100 billion.
Amazon founder Jeff Bezos announced that he is stepping down from Amazon later this year and will remain executive chairman, with head of AWS Andy Jassy replacing Bezos as CEO. Investors sent shares down 2% in Wednesday trades.
Here’s where US indexes stood at the 4 p.m. ET close on Wednesday:
- S&P 500: 3,830.17, up 0.1%
- Dow Jones industrial average: 30,723.60, up 0.1% (36 points)
- Nasdaq composite:13,610.54, down less than 0.1%
But one Wall Street analyst suggests investors stick with the e-commerce giant. Canaccord Genuity said shares could surge 21% as deliveries remain elevated in a post-pandemic world.
Alphabet soared 7% on Wednesday after fourth quarter earnings revealed a surge in digital ad sales amid the holiday season. The company beat analyst revenue estimates by $US4 billion, and EPS estimates by $US6.58. Amazon beat analyst revenue estimates by $US5.8 billion, and EPS estimates by $US6.96.
On a caucus call with House Democrats, President Biden reaffirmed his support for a $US1.9 trillion stimulus bill that would include direct checks of $US1,400. Biden said he was open to better targeting the stimulus to people who need it the most.
Treasury Secretary Janet Yellen will meet with the SEC, Federal Reserve, and CFTC officials to discuss the recent volatility sparked by last week’s GameStop short-squeeze.
In corporate news, GW Pharma soared 46% after Jazz Pharma said it would acquire the company for $US7.2 billion in cash and stock. GW develops treatments derived from the cannabis plant for epilepsy, cancer, and sleeping disorders.
Gold fell as much as 0.5%, to $US1,829.75 per ounce.
Biden’s stimulus plan is heightening Wall Street’s worries that inflation will upend the stock market. We spoke to 4 experts on what the raging debate means for investors, and how to take advantage of it.
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