Dow Slips but Nasdaq Rises After Amazon and Alphabet Earnings

This post was originally published on this site

Stocks were mixed Wednesday with the tech-heavy Nasdaq gaining after Amazon.com  (AMZN) – Get Report and Alphabet  (GOOGL) – Get Report posted strong quarterly earnings that impressed investors.

The Dow Jones Industrial Average fell 9 points, or 0.03%, to 30,678, the S&P 500 rose 0.25% and the Nasdaq was up 0.46%.

The retail frenzy in stocks such as GameStop  (GME) – Get Report and AMC Entertainment  (AMC) – Get Report also subsided further. Shares of GameStop, the video game retailer, were rising 6% Wednesday after falling 60% in the previous session.

Treasury Secretary Janet Yellen has summoned officials from the Securities and Exchange Commission, the Federal Reserve, the Federal Reserve Bank of New York and the Commodity Futures Trading Commission to discuss the recent market volatility driven by retail trading in stocks like GameStop.

President Joe Biden’s $1.9 trillion stimulus package, meanwhile, was being pushed through by Democrats without Republican support.

Amazon rose slightly after the retail and tech giant reported quarterly sales of more than $100 billion for the first time and founder Jeff Bezos said he will step down as CEO during the third quarter.

Andy Jassy, the head of Amazon’s cloud computing division, will take over day-to-day control of Amazon. Bezos will become executive chairman.

Andy Jassy Has Spent Nearly Half His Life with Amazon

Alphabet shares jumped 7% Wednesday after the parent company of Google reported fourth-quarter earnings that easily topped Wall Street estimates.

Advertising revenue in the quarter rose 22% to $46.2 billion. Ad sales at YouTube rose 46% to $6.9 billion. 

The private sector in the U.S. added 174,000 jobs in January, higher than estimates of 48,000. The data from the ADP National Employment Report serves as a precursor to the official U.S. jobs report that will be released Friday.