The stock market faded from early gains by midday as tensions mounted over a possible Russian invasion of Ukraine. Technology leaders were lifted by strong earnings from Alphabet and AMD.
The Nasdaq fell 0.2%. The S&P 500 gained 0.1%. The Dow Jones Industrial Average fell 0.1%. The small cap Russell 2000 lost 1.4%.
Volume rose on the Nasdaq and fell on the NYSE compared with the same time on Tuesday.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35380.07 | -25.17 | -0.07 |
| S&P 500 | (0S&P5) | 4557.59 | +11.05 | +0.24 |
| Nasdaq | (0NDQC ) | 14315.41 | -30.59 | -0.21 |
| Russell 2000 | 200.37 | -2.99 | -1.47 | |
| IBD 50 | 38.47 | +0.05 | +0.13 | |
Last Update: 12:00 PM ET 2/2/2022 |
||||
Russia continued to send troops to the Ukrainian border, and the U.S. is sending 3,000 troops to bolster European allies, the first deployment in a tense standoff between Russia and Ukraine. While the two sides are still working on a diplomatic solution, the threat of a Russian invasion of Ukraine presents a risk for financial markets.
Tech Earnings Bolster Stock Market
Shares of Alphabet, the Google parent, jumped 7% to a new high after the company late Tuesday beat earnings and revenue expectations. Alphabet, one of the largest stocks in the Nasdaq and S&P 500, gave both indexes a boost. Alphabet also announced a 20-for-1 stock split. Alphabet stock topped the 3,019.43 buy point of a lopsided base.
PayPal plunged 25% after the payment processing company shocked Wall Street with guidance that badly missed views and disappointed with its earnings and total payment volume.
PYPL stock has pulled back from an all-time high of 310.16 on July 26. PayPal holds a Relative Strength Rating of only 19 out of a best-possible 99, according to IBD Stock Checkup.
American Express, a Dow Jones stock to watch, is nearing a new buy point of 189.13 after a 14-week consolidation.
Allegheny Technologies broke out of a cup-with-handle buy point of 21.62. The buy range goes to 22.60.
The Pittsburgh-based maker of steel alloys reported fourth quarter adjusted earnings of 25 cents a share and sales of $765.4 million. FactSet analysts expected an adjusted profit of 10 cents a share on sales of $728.7 million.
D.R. Horton (DHI) posted earnings this morning that rose 48% on a sales increase of 19%, both above expectations. It was the first look at the homebuilding industry's December-ended quarter.
The company raised its 2022 revenue forecast to $34.5 billion-$35.5 billion. And Chairman Donald R. Horton called the housing market "robust." D.R. Horton stock, however, reversed lower.
Stock Market Waits For Meta, Qualcomm Earnings
More major earnings reports come out after today's close, the main one being Meta Platforms (FB), the parent of Facebook. Analysts expect earnings of $3.85 a share on revenue of $33.36 billion, according to FactSet. After hitting a 10-month low in January, the stock is now rebounding, but there's no entry so far.
Qualcomm (QCOM) also issues its quarterly report later today. The consensus earnings estimate is $3.01 per share with sales of $10.44 billion. Qualcomm shares gapped above the 50-day moving average as chip stocks rallied on AMD's results. IShares Semiconductor ETF (SOXX) trimmed its gain to 1.5% at midday.
Innovator IBD 50 ETF (FFTY) was up 0.6%, on track for a fourth straight gain.
Blackstone (BX), discussed in Tuesday's IBD 50 Stocks To Watch, rose above the 136.56 buy point of a double-bottom base. But the stock dipped below the entry at midday and volume faded.
Follow Michael Molinski on Twitter @IMmolinski
