Last Updated: 4:01 PM EST
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Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 0.42%, 0.39%, and 0.71%, respectively.
On Wednesday, Automatic Data Processing (ADP) released its Nonfarm Employment Change report, which came in better than expected. In January, nonfarm employment increased by 183,000, whereas expectations were for an increase of 148,000.
Separately, the Institute for Supply Management released its monthly report for the ISM Non-Manufacturing Purchasing Managers’ Index, which measures the overall economic condition of the non-manufacturing sector. A number over 50 represents an expansion, whereas anything below 50 signals a contraction. The report came in at 52.8, lower than the expected 54.2 and below last month’s reading of 54.
Lastly, S&P Global (SPGI) released its monthly report for the U.S. Services Purchasing Managers’ Index, which measures the activity levels of purchasing managers in the service sector. The report came in at 52.9, which was higher than the expected 52.8. This figure above 50 also indicates an expansion.
First Published: 3:39 AM EST
U.S. futures edged lower on Wednesday morning after a strong performance from major indices the day before. The dip is primarily due to Alphabet’s (GOOGL) mixed Q4 earnings report, which hurt market sentiment. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.73%, 0.22%, and 0.5%, respectively, at 3:26 a.m. EST, February 5.
Stocks climbed on Tuesday as investors assessed the latest developments in the tariff war between the Trump administration and China, and reviewed various corporate earnings reports. The S&P 500, the Nasdaq Composite, and the Dow Jones gained 0.7%, 1.4%, and 0.3%, respectively.
In the after-market session, Alphabet stock plunged nearly 8% after the Google parent company reported weaker-than-expected cloud revenue, despite huge investments in artificial intelligence (AI). This fueled investor concerns about the company’s ability to capitalize on its AI ambitions.
Also, Chipotle (CMG) stock declined 5% after reporting slower-than-expected same-store sales growth. In contrast, Snap (SNAP) stock rose 5.6% after the social media company reported better-than-expected fourth-quarter results.
Looking ahead, investors are focused on several key economic data releases due today. These include the Private Payrolls report by Automatic Data Processing (ADP), the S&P final U.S. Services Purchasing Managers’ Index (PMI), and the Institute for Supply Management’s Services Index.
Further, the major companies scheduled to report earnings today include Walt Disney (DIS), Uber Technologies (UBER), Yum! Brands (YUM), Formfactor (FORM), Ford (F), MicroStrategy (MSTR), and Arm Holdings (ARM).
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.501%. Simultaneously, WTI crude oil futures are trending lower, hovering near $72.57 per barrel as of the last check.
Elsewhere, European indices opened lower on Wednesday as investors looked forward to earnings reports from some major companies.
Asia-Pacific Markets Traded Mixed on Wednesday
Asia-Pacific indices were mixed today as traders monitored the escalated trade war between the U.S. and China.
At the same time, the Hang Seng index closed lower by 0.93%. Further, China’s Shanghai Composite declined 0.65%, while the Shenzhen Component index gained 0.08%. Also, Japan’s Topix and Nikkei indices ended higher by 0.09% and 0.27%, respectively.
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