The S&P 500 posted gains for the third straight session at the close of trading on Wednesday, as investor attention was once again focused on the outlook for the economy rather than the scandalous events surrounding GameStop and other companies.
The S&P 500 index rose 0.1%, to 3830.17 points, the Dow Jones Industrial Average gained 0.1%, to 30723.60 points, and the Nasdaq Composite sank 0.1%, to 13610.54
Stocks continued to rally this week, overturning fears of overvalued valuations, new strains of coronavirus, and an uncontrolled rise in silver prices. All the attention of investors is focused on the financial statements of corporations that exceed the wildest expectations of analysts. Another stimulus for the growth of markets was the expectation that US President Joe Biden will soon announce an additional package of government assistance to the country's economy.
Market participants are now closely following the negotiations on new stimulus for the US economy. Biden's administration is pushing for a $1.9 trillion package of measures, but Republicans are calling for more than half the spending. Investors hope that the final decision on this important issue will be taken as soon as possible, as the American economy needs support right now.
The latest economic data, which points to a steady improvement in the service sector in the United States, also inspire serious optimism.
The purchasing managers' index (PMI) for the service sector rose to 58.7 points in the past month from 57.7 points in December. At the same time, analysts predicted that the index would be 57.0 points.
The number of jobs in the US private sector increased by 174,000 in January, while economists forecast growth by 49,000.
The yield on 10-year US government bonds on Wednesday increased to 1.129% from 1.105% on Tuesday. The bright prospects for growth in government bond yields are most often observed when investors expect an acceleration of economic growth and an increase in government borrowing.
And now, from abstract reflections to uncompromising numbers.
Shares of Alphabet Inc. increased by 7.3% at the end of trading on Wednesday. Google holding company reported record net profit for the second quarter in a row.
The market value of Boston Scientific Corp. rose 2.2% after the US medical device company posted higher-than-expected fourth-quarter earnings and revenues.
Boeing Co. increased by 3.2%. One of the world's largest manufacturers of aviation, space, and military equipment raised about $10 billion in the corporate bond market by placing three tranches of bonds.
Amazon.com Inc. quotes sank 2%. The world's largest online retailer has released the company's fourth-quarter financials, which turned out to be a record. Amazon's revenue for the first time exceeded $100 billion, and the profit was the highest for the third quarter in a row.
Shares of the Swedish company Spotify Technology SA fell by 8.1%. The net loss of the operator of the music streaming service of the same name decreased in the fourth quarter of the past year due to an increase in revenue and the number of users.
Electronic Arts Inc. sank 5.5% after the leading PC game maker cut net income in the third fiscal quarter and increased revenue. However, the final indicators still turned out to be lower than those predicted by experts.
The market value of Amgen Inc. decreased by 1.4%. In the fourth quarter, the company reported financial indicators that were higher than analysts' expectations.
Biogen Inc. sank 5.2% on the back of lower net income and revenues of the biotech company in the fourth quarter of the previous year due to higher research and development costs.
The Pan-European Stoxx Europe 600 Index increased by 0.3%. The leader here was the Italian FTSE MIB, ahead of other regional indices against the backdrop of the formation of the country's new government was entrusted to the former ECB President Mario Draghi.
Meanwhile, Asia-Pacific markets recorded a multidirectional trend similar to the American exchanges. The Japanese Nikkei 225 gained 1%, the Hong Kong Hang Seng rose by 0.2%, and the continental Shanghai Composite index sank 0.5%.
