Tech Stocks May Lead Early Pullback On Wall Street
05 Fevereiro 2025 - 11:00AM
IH Market News
The major U.S. index futures are currently
pointing to a lower open on Wednesday, with stocks likely to give
back ground after ending the previous session mostly higher.
Tech stocks may lead an early pullback on Wall Street amid a
negative reaction to earnings news from Alphabet (NASDAQ:GOOGL) and
Advanced Micro Devices (NASDAQ:AMD).
Shares of Alphabet are tumbling by 7.6 percent in pre-market
trading after the Google parent reported better than expected
fourth quarter earnings but its cloud revenues missed
estimates.
Chip maker AMD is also plunging by 9.9 percent in pre-market
trading after reporting fourth quarter earnings and revenues that
beat estimates but its data center sales fell short of
expectations.
Shares of Disney (NYSE:DIS) are also seeing pre-market weakness
after the entertainment giant reported better than expected fiscal
first quarter earnings but warned it expects a “modest decline” in
Disney+ subscribers in the current quarter.
Worries about the Federal Reserve leaving interest rates on hold
for a prolonged period may also weigh on stocks after payroll
processor ADP released a report showing private sector employment
in the U.S. increased by more than expected in the month of
January.
ADP said private sector employment climbed by 183,000 jobs in
January after rising by an upwardly revised 176,000 jobs in
December.
Economists had expected private sector employment to rise by
150,000 jobs compared to the addition of 122,000 jobs originally
reported for the previous month.
Stocks moved mostly higher during trading on Tuesday, largely
offsetting the weakness seen in the previous session. The major
averages all moved to the upside on the day, with the tech-heavy
Nasdaq leading the charge.
The major averages finished the session just off their best
levels of the day. The Nasdaq jumped 262.06 points or 1.4 percent
to 19,654.02, the S&P 500 climbed 43.31 points or 0.7 percent
to 6,037.88 and the Dow rose 134.13 points or 0.3 percent to
44,556.04.
The strength on Wall Street partly reflected
easing concerns about a global trade war after President Donald
Trump agreed to pause 25 percent tariffs on imports from Mexico and
Canada for a month.
Positive sentiment may also have been regenerated in reaction to
a report from the Labor Department showing job openings in the U.S.
fell by much more than expected in the month of December.
The report said job openings tumbled to 7.6 million in December
after climbing to an upwardly revised 8.2 million in November.
Economists had expected job openings to dip to 8.0 million from
the 8.1 million originally reported for the previous month.
The data led to some optimism about the outlook for interest
rates ahead of the release of the Labor Department’s more closely
watched monthly jobs report on Friday.
Meanwhile, traders largely shrugged off news that China has
slapped retaliatory tariffs on U.S. imports in response to a 10
percent trade duty imposed on Chinese goods.
China’s Finance Ministry said it will impose a 15 percent duty
on imports of coal and liquefied natural gas from the U.S.
In addition, there will be a 10 percent tariff on imports from
the U.S. of crude oil, agricultural equipment and automobiles
beginning February 10.
Oil stocks moved sharply higher despite a decrease by the price
of crude oil, resulting in a 3.0 percent surge by the NYSE Arca Oil
Index.
Considerable strength was also visible among computer hardware
stocks, as reflected by the 2.5 percent jump by the NYSE Arca
Computer Hardware Index.
Steel, retail and networking stocks also saw significant
strength on the day, moving higher along with most of the other
major sectors.
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