The Dow Jones Industrial Average moved higher Wednesday after erasing losses while the S&P 500 led the upside among indexes. Corporate earnings reports continue to be among the most important factors this week. Meanwhile, tensions mounted over a possible Russian invasion of Ukraine.
Stock Market Today
Earlier in today's market, the major indexes dipped after strong gains in the past few sessions. The Nasdaq and Dow Jones industrials both briefly turned negative but reversed off their lows.
At around 1:30 p.m. ET, the Dow Jones industrials were up 0.2% while the Nasdaq composite rose 0.2% as well. The S&P 500 advanced 0.6%.
Energy stocks led the downside on Wednesday after being a leader in recent sessions. The Energy Select Sector SPDR fell around 0.7%. Consumer discretionary stocks also underperformed. Communications services, utility and real estate were among the sectors with a gain of over 1% on Wednesday.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35493.34 | +88.10 | +0.25 |
| S&P 500 | (0S&P5) | 4571.99 | +25.45 | +0.56 |
| Nasdaq | (0NDQC ) | 14369.31 | +23.31 | +0.16 |
| Russell 2000 | 201.00 | -2.36 | -1.16 | |
| IBD 50 | 38.70 | +0.28 | +0.73 | |
Last Update: 1:34 PM ET 2/2/2022 |
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The Russell 2000 lost 1.2% as small caps underperformed. Volume was running lower on the Nasdaq and on the NYSE vs. the same time Tuesday. The Innovator IBD 50 ETF traded up 0.7%.
Russia continued to send troops to the Ukraine border in a tense standoff between the two nations.
Meanwhile, the U.S. is sending 3,000 troops to bolster European allies. The two sides are still working on a diplomatic solution. However, the threat of a Russian invasion of Ukraine presents a major risk for financial markets.
AMD, Google Earnings Give Indexes A Boost
Google parent Alphabet jumped 7% to a new high in very strong volume after reporting better-than-expected earnings and revenue late Tuesday. The company also announced a 20-for-1 stock split. Alphabet is one of the largest stocks in the Nasdaq and S&P 500 and helped boost both major indexes on Wednesday.
Shares moved above the 3,019.43 buy point of a lopsided base, but faded from the buy point in afternoon trading. The relative strength line hit a new high as well, which is a bullish sign. The stock also retook its 50-day line, a sign of strength.
Advanced Micro Devices also helped move indexes higher after the chip designer reported a strong earnings beat. AMD exceeded analysts' estimates for the fourth quarter and gave bullish guidance for the current quarter and full year. Shares rose close to 7% in heavy volume and appear to be forming a new base. Investors should wait to see if this stock can reclaim its 50-day moving average.
Earnings On Deck: Meta Platforms, Amazon
Later today, both Facebook parent Meta Platforms and Spotify are set to report after the closing bell.
Analysts expect Meta Platforms to earn $3.85 a share on revenue of $33.36 billion, according to FactSet. After hitting a 10-month low in January, the stock is rebounding. While there's no proper entry so far, shares just reclaimed the 21-day line and are working to reclaim the 50-day line next. The stock remains below the longer term 200-day moving average. The stock rose over 1% on Wednesday.
As for Spotify, analysts expect fourth-quarter revenue to come in at around $2.98 billion, up 23% on a year-over-year basis. Analysts also expect Spotify to post a loss of 49 cents a share, compared with a loss of 81 cents in the year-ago quarter. Spotify fell over 5% in heavy volume on Wednesday.
Amazon.com will report on Thursday. The stock is up about 4% this week, but fell around 1% on Wednesday. Additionally, shares have also declined significantly the past few months. Shares are below their 50-day and 200-day lines. The stock is also finding resistance at the 21-day line, which sits below both longer-term moving averages.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
