By Devik Jain and Medha Singh
(Reuters) – U.S. stock index futures rose on Wednesday after strong quarterly showing from heavyweights Alphabet and Amazon ahead of data that is likely to show a rebound in monthly private payrolls.
Alphabet Inc jumped 7% in premarket trading as it benefited from lockdowns that drove retail and other advertisers online.
Amazon.com Inc edged 0.4% higher as its founder Jeff Bezos would step down as CEO and become executive chairman. The retail giant also reported quarterly sales above $100 billion for the first time.
More than 80% of reports from S&P 500 companies so far have surpassed analysts’ earnings expectations, with 97% of reports from technology companies beating, according to IBES data from Refinitiv.
Wall Street’s main indexes finished sharply higher for a second straight day on Tuesday in a broad-based rally as market participants digested talks over the next round of stimulus.
Democrats in the U.S. Congress on Tuesday voted along the party lines to open debate on a fiscal 2021 budget resolution with coronavirus aid spending instructions, their first steps toward advancing President Joe Biden’s proposed $1.9 trillion package without Republican support.
At 6:25 a.m. ET, Dow E-minis were up 34 points, or 0.11% and S&P 500 E-minis were up 14.75 points, or 0.39%. Nasdaq 100 E-minis were up 91 points, or 0.68%.
Videogame retailer GameStop Corp and movie theater operator AMC Entertainment Holdings Inc rose 9% and 6%, respectively, reversing from sharp losses earlier in a social media-driven trading rollercoaster ride.
U.S. Treasury Secretary Janet Yellen is calling a meeting of top officials, including from the Securities and Exchange Commission and the Federal Reserve, this week to discuss market volatility.
“Equity markets are fading the retail scare … an indication that this still has a long way to run. And run we shall with two beats on earnings from mega-caps Alphabet and Amazon,” said Sebastien Galy, senior macro strategist at Nordea Asset Management.
Chipotle Mexican Grill Inc dropped about 4% after the burrito chain missed Wall Street estimates for quarterly profit, hurt by costs related to keeping its business running during the COVID-19 pandemic.
On the economic front, ADP National Employment Report, due at 08:15 a.m. ET (1315 GMT), is expected to show hiring by U.S. private employers rebounded by 49,000 in January after a sharp drop in December. A more comprehensive jobs report is expected on Friday.
(Reporting by Devik Jain in Bengaluru; Editing by Maju Samuel)
