Stocks edged higher in afternoon trading on Wall Street on Wednesday in New York, putting major indexes on track to extend their weekly gains.
In mid-afternoon trade, the S&P 500 is up 0.8 per cent, the Dow Jones has added 0.3 per cent and the Nasdaq is 0.3 per cent higher. The Australian sharemarket is set for a flat start with futures at 5.11am AEDT pointing to a fall of 1 point at the open.
Wall Street has had a steady week of gains to kick off February. Credit:AP
Several big communications and technology companies helped lift the broader market. Google parent Alphabet jumped 8.1 per cent after it said its digital ad business propelled a 36 per cent jump in profit last quarter. Chipmaker Advanced Micro Devices rose 5.6 per cent after it reported surprisingly strong fourth-quarter financial results and gave investors an encouraging sales forecast.
Bond yields fell. The yield on the 10-year Treasury fell to 1.75 per cent from 1.80 per cent late Tuesday.
Energy stocks fell and tempered gains elsewhere in the market. Oil prices were mostly stable following news that oil cartel OPEC and allied producing countries are sticking with cautious increases production.
Retailers and other companies that rely on direct consumer spending also fell. Amazon shed 1 per cent and Gap fell 2.6 per cent.
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Major indexes are are on track for solid gains this week, a welcome turnaround from January’s losses. Last month’s slide came as Wall Street faced several threats including rising inflation, the prospect of higher interest rates and COVID-19’s continued drag on the economic recovery.
Inflation remains a key concern as rising costs threaten profit margins and put more pressure on consumer spending. The Federal Reserve intends to raise interest rates to try cooling inflation, which is at a four-decade high. Investors expect the first rate hike in March and at least three more in 2022.
Google parent surges to drive Wall Street higher; ASX eyes flat start
Source: Philippines Alive
