Nasdaq futures jumped in early trading Wednesday, after the technology-focused average gained for a third straight day.
Futures tied to the index rose 1.6%, while Dow futures were up 50 points, or 0.15%, and S&P 500 futures gained a more robust 0.8%.
Google-parent Alphabet jumped about 10% in premarket trading after the company’s quarterly results beat on the top and bottom lines. Alphabet also announced a 20-for-1 stock split, indicating the company might soon be included on the Dow Jones Industrial Average as well.
Chip stock Advanced Micro Devices also gained 11.3% on strong earnings, while Starbucks dipped 3.3% following its results. PayPal tanked nearly 17% after hours after issuing disappointing guidance. General Motors shares rose 1.3% premarket after the automaker reported earnings that beat estimates and raised its 2022 forecast, though revenue came up light.
On the economic front, private payroll data is set to release at 8:15 a.m. on Wednesday. Economists polled by Dow Jones are expecting 200,000 private jobs were added in January, down from December’s growth of 807,000 private payrolls, according to ADP.
However, economists and White House officials are warning that January payroll numbers could disappoint due to the large number of worker absences attributed to the omicron spread.
On Tuesday, the major average rose for the third day as stocks attempted a comeback from their tumultuous January where the S&P 500 has its worst month since March 2020.
The Dow added more than 270 points, helped by a 4.1% gain in Boeing. The S&P 500 also registered a gain, climbing 0.7%. Bank stocks were some of the best performers Tuesday.
The Nasdaq Composite rose 0.75% as investors await key technology earnings after the bell and throughout the week.
“The market has strung together a few solid up days,” said Jim Paulsen, Leuthold Group chief investment strategist. “This strong showing is causing more investors to wonder if the correction is over and raising concerns that they could miss out on a nice post-correction rally”
So far this earnings season, more than 36% of the S&P 500 has reported and more than 78% have topped Wall Street’s expectations.
“While the earnings season began with some disappointments last week, it has become more solid in recent days,” added Paulsen.
The major averages are coming off of a volatile month, mainly spurred by a pivot in the Federal Reserve. However, some Fed members have have offered reassuring commentary that they do not want their pending rate hikes to disturb the financial markets and that few see any appetite for a 50 basis point hike.