S&P 500 gains 0.9%, Dow adds 224 points, or 0.6%

Shares rose in a choppy session on Wednesday as investors pondered a fresh batch of earnings results from some major index constituents and tried to further shake off January’s volatility. The S&P 500, Dow and Nasdaq gained just after noon in New York.

A flurry of better-than-expected corporate earnings partially offset some more concerning signs of an Omicron-induced slowdown in growth earlier in the year. ADP reported Wednesday morning that U.S. private sector employers cut 301,000 jobs in January, marking the first drop since December 2020.

Shares of Alphabet (GOOGL) jumped after the tech behemoth beat quarterly sales and earnings estimates and announced a 20-to-1 stock split. The move could send the stock currently trading at more than $3,000 per share more accessible and attractive to other investors. Shares of other advertising-focused internet technology companies, including Meta (FB) and Pinterest (PINS), also gained late in the session after Alphabet’s results.

Shares of AMD (AMD) also soared after quarterly results beat estimates on almost all major metrics, suggesting it was taking more market share from chip rivals and navigating component shortages. In progress. However, Starbucks (SBUX) fell as quarterly earnings missed estimates, and shares of PayPal (PYPL) fell after providing guidance below Wall Street expectations.

This week’s earnings slate helped provide fresh catalyst to markets after a weak performance in January. Earnings from other major companies, including Meta, Spotify (SPOT) and Qualcomm (QCOMM), are due out on Wednesday. The S&P 500 closed Tuesday’s regular trading day higher for a third straight session, starting February on a high note after posting its worst month since March 2020 in January. The Nasdaq Composite rose 0.8% on Tuesday, while the Dow Jones gained 0.8%.

“We had a pretty tough January. I think we’re seeing a bit of short hedging and some bouncing here from the bottom. I don’t think the market is settled yet,” said Michael Vogelzang, Chief Investment Officer of CAPTRUST at Yahoo Finance. Live Tuesday.

“We don’t yet know exactly what the Fed is going to do. We don’t have a good idea of ​​the path of inflation for the rest of the year,” he added. “We have Russia over the Ukrainian border…which has the potential to push oil prices even higher than they already are, which of course could slow the economy and drive up inflation. .So I think the market is really choppy, trying to find a bottom.”

4:05 p.m. ET: Stocks rise for fourth straight session: S&P 500 gains 0.9%, Dow adds 224 points, or 0.6%

Here are the top moves in the markets as of 4:05 p.m. ET:

  • S&P 500 (^GSPC): +42.84 (+0.94%) to 4,589.38

  • Dow (^ DJI): +224.09 (+0.63%) to 35,629.33

  • Nasdaq (^IXIC): +71.54 (+0.50%) to 14,417.55

  • Raw (CL=F): +$0.16 (+0.18%) at $88.36 per barrel

  • Gold (CG=F): +$4.60 (+0.26%) at $1,806.10 per ounce

  • 10-year cash flow (^TNX): -3.4 bps for a yield of 1.7660%

11:23 a.m. ET: PayPal shares pace of worst day ever after earnings, guidance misses

Shares of PayPal (PYPL) fell more than 25% to Wednesday’s session lows, setting the stock for its worst day on record after the release of quarterly results and forecasts showed a significant slowdown in the market. momentum for the payment company.

PayPal generated adjusted earnings of $1.11 per share on net income of $6.92 billion, with the end result missing estimates by a penny per share, according to consensus data from Bloomberg. However, the closely watched payment volume grew only 23% from a year ago to $339.53 billion, with estimates missing for $343.47 billion. Active customer accounts increased by 9.8 million to 426 million, also missing expectations.

And PayPal’s outlook for the current quarter and full year was of greater concern. For the current quarter, PayPal said it posted adjusted earnings per share of 87 cents, well below consensus of $1.17. Full-year adjusted earnings are likely to be $4.75 per share, PayPal said, lower than the $5.23 estimated by Wall Street analysts.

“Notably, the company attributed the revenue weakness to inflationary pressures that weighed on spending levels among lower-income cohorts, which intensified as the stimulus unfolded,” wrote analyst David Holt. of CFRA equity research, in a note Wednesday. He maintained a Hold rating on PayPal shares and lowered his price target to $186 per share from $265 previously seen. “PYPL outlined a plan to reduce engagement on low-yielding net new accounts (NNAs) on the call, but we remain cautious at best as the story becomes increasingly complex and TCCA’s objectives over five years (i.e. 20% net revenue growth) falls even further out of reach.”

9:30 a.m. ET: Stocks mostly open higher after Alphabet earnings, ADP disappointment

Here is where the markets were trading right after the opening bell:

  • S&P 500 (^GSPC): +23.72 (+0.52%) at 4,570.26

  • Dow (^ DJI): -64.52 (-0.18%) to 35,340.72

  • Nasdaq (^IXIC): +115.44 (+0.8%) to 14,471.75

  • Raw (CL=F): +$0.65 (+0.74%) at $88.85 per barrel

  • Gold (CG=F): +$1.70 (+0.09%) at $1,803.20 per ounce

  • 10-year cash flow (^TNX): -0.9 bps for a yield of 1.781%

8:26 a.m. ET: Private payrolls fell for the first time since December 2020 in January: ADP

Private payrolls fell for the first time in more than a year in January amid the spread of the Omicron variant.

US private sector employment fell by 301,000 in January, ADP said in its closely watched monthly report on Wednesday. This represented the first decline in payrolls since December 2020, and came after 776,000 payrolls were added in December, based on ADP’s revised monthly printout. Consensus economists had forecast about 180,000 private jobs would return in January, according to Bloomberg data.

Service-related industries saw the biggest declines in monthly payrolls as high-touch jobs saw some of the biggest disruptions due to the latest spike in virus cases. Leisure and hospitality jobs fell by more than 150,000 in January, reversing some recent gains during the recovery. This is followed by jobs in trade, transport and utilities, which together fell by 62,000 in January. Payrolls for education and health services fell by 15,000.

Private employers in goods-producing industries also reduced their net payrolls during the month. Payrolls in manufacturing and construction fell in January, by 21,000 and 10,000, respectively.

The ADP report comes two days ahead of the Labor Department’s official monthly jobs report, which economists say will reflect payroll gains of 150,000 for January. ADP data generally does not serve as an accurate indicator of what to expect from Department of Labor data due to differences in survey methodology.

7:25 a.m. ET Wednesday: Stocks set to rise for fourth straight session

Here are the main movements in the markets before the opening bell:

  • S&P 500 Futures Contracts (ES=F): +37.75 points (+0.83%), to 4,572.75

  • Dow futures contracts (JM=F): +51 points (+0.14%), to 35,325.00

  • Nasdaq futures contracts (NQ = F): +1246.50 points (+1.64%) to 15,241.25

  • Raw (CL=F): unchanged at $88.20 a barrel

  • Gold (CG=F): +$2.60 (+0.14%) at $1,804.10 per ounce

  • 10-year cash flow (^TNX): -1.6 bps for a yield of 1.784%

6:10 p.m. ET Tuesday: Stock futures fall to end volatile month of trading

Here’s where the shares were trading before the opening bell on Tuesday night:

  • S&P 500 Futures Contracts (ES=F): +14 points (+0.31%), to 4,549.00

  • Dow futures (JM=F): -63 points (-0.18%), to 35,211.00

  • Nasdaq futures contracts (NQ = F): +125 points (+0.83%) to 15,119.75

NEW YORK, NEW YORK - JANUARY 26: People walk at the New York Stock Exchange (NYSE) in the Financial District on January 26, 2022 in New York City.  The Dow Jones Industrial Average rose nearly 200 points in morning trade after days of volatility in global markets.  (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – JANUARY 26: People walk at the New York Stock Exchange (NYSE) in the Financial District on January 26, 2022 in New York City. The Dow Jones Industrial Average rose nearly 200 points in morning trade after days of volatility in global markets. (Photo by Spencer Platt/Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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