Stock Market Live Updates Wednesday: Tech Earnings, Reddit Fallout in Focus

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Latest Updates:

  • Major Indices Open Mostly Higher
  • Ethereum Sets All-Time High Above $1,500
  • 3 Big Stories to Watch Today
  • Stock Market Futures Suggest Mixed Open

  • Major Indices Open Mostly Higher

    [Wednesday, February 3, 9:34 am]
    Contributed by Sarah Smith

    • The S&P 500 opened higher by 0.33%
    • The Dow Jones Industrial Average opened lower by 0.2%
    • The Nasdaq Composite opened higher by 0.75%
    • The Russell 2000 opened higher by 1.19%

    Ethereum Sets All-Time High Above $1,500

    [Wednesday, February 3, 9:09 am]
    Contributed by Sarah Smith

    Today Ethereum (CCC:ETH) hit a new all-time high at $1,573.95. According to cryptocurrency experts, this move suggests two things. First, the milestone follows broad strength in crypto and decentralized finance circles. All throughout 2020, macroeconomic catalysts were aligning to send Bitcoin (CCC:BTC), Ethereum and small digital currencies higher. Those catalysts, including ongoing stimulus spending, a Democrat-controlled Congress and growing mainstream support, are still in place.

    Second, the r/WallStreetBets rally and the response of trading platforms like Robinhood sparked new interest in cryptocurrencies. As we reported last week, trading bans angered many customers, prompting interest in DeFi. Cryptocurrencies including Ethereum, Bitcoin, Dogecoin (CCC:DOGE) and XRP (CCC:XRP) rallied. That interest continues today with this new all-time high.

    For more on Ethereum price predictions, read the brief here.

    3 Big Stories to Watch Today

    [Wednesday, February 3, 8:47 am]
    Contributed by Sarah Smith

  1. Jeff Bezos steps down. Amazon (NASDAQ:AMZN) founder and CEO Jeff Bezos announced he will be stepping down from the helm during the third quarter. Andy Jassy, who currently leads the cloud-computing division, will replace him. This move follows a previous attempt by Bezos to step away from day-to-day operations, and also in many ways signals the growing power of AWS. During the rest of the fourth-quarter report, Amazon shared revenue of $125.6 billion, with net income of $7.2 billion. AWS is pulling its weight, representing $12.7 billion of that Q4 revenue. Investors seem to be taking the news well, sending AMZN stock up in pre-market trading.
  2. Private payrolls. Although not the most exciting metric, the private payrolls report has been another closely watched measure of the economy since the start of the Covid-19 pandemic. This morning, we learned that those payrolls added 174,000 jobs in the month of January. That seriously beats estimates for 50,000 jobs, and reflects big gains in healthcare and professional services roles. Another thing to watch? According to the report, private payrolls added about 35,000 travel and leisure jobs. That remains below pre-pandemic levels, but could hint at a recovery as the vaccine rollout continues.
  3. The Reddit stocks fallout. Just as quickly as the r/WallStreetBets stocks soared, yesterday brought them crashing down. GameStop (NYSE:GME) closed down 60% at $90, while AMC Entertainment (NYSE:AMC) ended the day down 41% just above $7. This comes as short interest on those stocks fades, and as many investors wake up to the reality of the rally. Although the turnaround story and retail investor enthusiasm around GME is powerful, the actual video game business is still struggling. So what should you do now? Several of the most influential Redditors continue to hold onto their shares, and one reported a loss of $13 million from Tuesday trading alone. Watch for what happens to GME and AMC today, but more importantly, look for what is to come. What will happen to Robinhood? And where will investor attention move next?

Stock Market Futures Suggest Mixed Open

[Wednesday, February 3, 8:20 am]
Contributed by Sarah Smith

  • S&P 500 futures are up 0.29%
  • Dow Jones Industrial Average futures are down 0.06%
  • Nasdaq Composite futures are up 0.62%
  • Russell 2000 futures are down 0.25%
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