The major averages are firmer, supported by expectations for more stimulus from Washington. Moderation in the spread of the virus and lockdowns, alongside progress on the administration of vaccines, is also underpinning the continued rally in stocks. The busy earnings cadence continues today, with reports from Ford (F) and Snap (SNAP) due after the close.
ECONOMIC EVENTS: In the U.S., initial jobless claims fell 33,000 to 779,000 in the week ended January 30. Productivity contracted at a 4.8% rate in the preliminary Q4 report, which was a larger drop than expected. Factory orders rose 1.1% in December.
TOP NEWS: Apple (AAPL) shares were trading 2% higher near noon after CNBC reported that the tech giant is near finalizing an agreement with Hyundai-Kia (HYMTF) to make an Apple-branded autonomous electric car at the Kia assembly factory in West Point, Georgia. The so-called "Apple Car," which is being developed by a team at the U.S. tech giant, is tentatively set to enter production in 2024, though the eventual launch could be further delayed, according to CNBC.
Shares of Merck (MRK) were down 2% near noon after announcing that Kenneth Frazier will retire as CEO of the company effective June 30, with CFO Robert Davis unanimously named by the board as Frazier's successor. In addition, the company reported downbeat quarterly results and provided guidance for fiscal 2021.
In other earnings news, Qualcomm (QCOM) shares fell 9% after the company reported better than expected earnings per share for the first quarter, though non-GAAP revenue was below consensus estimates. Of note, the company provided better than expected guidance for the second quarter.
Additionally, shares of PayPal (PYPL) and eBay (EBAY) rose a respective 5% and 6% after both companies reported better than expected quarterly earnings and revenue.
In non-earnings news, GameStop (GME) shares are continuing this week's decline, down 25% near noon as investors are selling following last week's sharp gains. Notably, Bloomberg reported yesterday that the U.S. Securities and Exchange Commission investigators are combing social media and message board posts for signs that fraud played a role in dizzying stock swings for GameStop, AMC (AMC) and other companies.
Meanwhile, shares of Clover Health (CLOV) fell 10% after Hindenburg Research issued a cautious report in which it claims to "reveal how Clover Health and its Wall Street celebrity promoter, Chamath Palihapitiya, misled investors about critical aspects of Clover's business in the run-up to the company's SPAC go-public transaction last month."
MAJOR MOVERS: Among the noteworthy gainers was Lizhi (LIZI), which rose 75% after announcing a cooperation agreement with Pop Mart. Also higher were Canada Goose (GOOS) and Digital Turbine (APPS), which gained a respective 28% and 29% after reporting quarterly results.
Among the notable losers was Tyme Technologies (TYME), which declined 35% after a 9M share secondary offering priced at $2.25 per share. Also lower were Lannett (LCI) and Peabody Energy (BTU), which fell 17% and 16%, respectively, after reporting quarterly results.
INDEXES: Near midday, the Dow was up 243.07, or 0.79%, to 30,966.67, the Nasdaq was up 102.73, or 0.75%, to 13,713.28, and the S&P 500 was up 27.73, or 0.72%, to 3,857.90.
