US: Strong data, earnings lift Dow, S&P 500

[NEW YORK] Wall Street stocks finished little changed on Wednesday following better-than-expected US economic data and strong earnings from Amazon and Google parent Alphabet.

The market appears to have stabilized following last week's volatility, which was brought on by a social media-driven surge in shares of GameStop, AMC Entertainment and other struggling companies that hedge funds and other major investors had bet against.

The Dow Jones Industrial Average gained 0.1 per cent to 30,723.60.

The broad-based S&P 500 edged up 0.1 per cent to 3,830.17, while the tech-rich Nasdaq Composite Index lost less than 0.1 per cent at 13,610.54.

Data from payroll firm ADP showed the United States added 174,000 jobs in January, more than triple analysts' expectations.

The Institute for Supply Management's services index rose to 58.7 per cent, more than expected and its highest level since February 2019, reaching eight straight months of growth after contracting when the pandemic began last year.

Alphabet surged 7.4 per cent after reporting a 50 per cent jump in quarterly profit to US$15.2 billion as its digital ad business thrived.

Amazon also reported strong profits, but those results were upstaged by the announcement that founder Jeff Bezos would step down and hand the reins to Andy Jassy, who heads Amazon Web Services. Shares finished down two per cent.

AFP