By Peter Nurse
Investing.com – U.S. stocks are seen edging higher Wednesday, helped by strong earnings from tech giants Amazon (NASDAQ:) and Alphabet (NASDAQ:) as well more progress towards an additional stimulus package.
At 7:05 AM ET (1205 GMT), the contract was up 21 points, or 0.1%, traded 13 points, or 0.4%, higher, and climbed 90 points, or 0.7%.
Strong quarterly results from tech behemoths Amazon (NASDAQ:) and Alphabet (NASDAQ:) after Tuesday’s close have helped the tone Wednesday.
Google parent Alphabet topped sales expectations for its advertising and Cloud businesses, helped in part by the pandemic, resulting in its stock climbing over 7% premarket. Online retailer Amazon reported quarterly sales above $100 billion for the first time, but its stock move was tempered by the news that highly respected CEO Jeff Bezos was stepping down from the role.
Helping the positive tone was the news that Democrats have taken the toward advancing President Joe Biden’s proposed $1.9 trillion coronavirus aid plan without Republican support, opening a debate on a fiscal 2021 budget resolution.
The idea of this Covid relief plan has helped buoy stock markets over the last couple of months, but it had run into opposition from Republican lawmakers on Capitol Hill over the size and nature of the spending proposed.
Meanwhile, the recent retail-driven market turmoil which resulted in sharp gains for heavily-shorted stocks like GameStop (NYSE:), appears to have fizzled out amid trading restrictions from major brokers.
More companies are scheduled to release results Wednesday, with earnings due from the likes of drugmakers AbbVie (NYSE:), Biogen (NASDAQ:) and GlaxoSmithKline (NYSE:) before the opening bell, as well as chipmaker Qualcomm (NASDAQ:), e-commerce giant eBay (NASDAQ:) and online payments company PayPal (NASDAQ:) after the market close.
The main economic data release will be the January number for January, at 8:15 AM ET (1315 GMT). This is expected to show gains of 49,000, an improvement from the drop of 123,000 in December, and will be seen as a precursor to Friday’s .
Oil prices traded slightly higher Wednesday, pushing to around the highest levels in a year after an unexpected fall in oil supply.
The reported late Tuesday crude inventories fell by 4.3 million barrels last week, compared with expectations for a small build. Data from the U.S. is due later in the day.
U.S. crude futures traded 0.7% higher at $55.12 a barrel, after hitting a one-year high of $55.26 on Tuesday. The international benchmark contract rose 0.3% to $57.97, after earlier climbing to $58.05, its highest in more than 11 months.
Elsewhere, rose 0.2% to $1,836.50/oz, while traded 0.2% lower at 1.2016.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.