US Stocks extend gains to third straight day

The US stocks closed mostly higher after fluctuating in and out of the boundary line on Wednesday, 03 February 2021, as investors continued to digest fourth-quarter corporate earnings and progress on President Biden's $1.9 trillion stimulus proposal. However, market gains capped after the release of some upbeat economic data, which raised concerns lawmakers will feel less pressure to provide additional stimulus.

At the close of trade, the Dow Jones Industrial Average index advanced 36.12 points, or 0.12%, to 30,723.60. The S&P 500 index increased 3.86 points, or 0.1%, to 3,830.17. The tech-heavy Nasdaq Composite Index fell 2.23 points, or 0.02%, to 13,610.54.

U.S. President Joe Biden is to meet with congressional Democrats preparing to advance his $1.9 trillion COVID-19 relief plan despite Republican pushback. Biden told congressional Democrats he would not back down on including $1,400 checks for struggling Americans in his COVID-19 relief plan but would consider tighter limits on who gets them, lawmakers and aides said.

Shares of Alphabet surged up by 7.3% after the tech giant reported fourth quarter results that exceeded analyst estimates on both the top and bottom lines. On the other hand, online retail giant Amazon turned lower over the course of the session despite reporting better than expected fourth quarter results.

Economic News: Payroll processor ADP released a report showing private sector employment jumped by 174,000 jobs in January after decreasing by a revised 78,000 jobs in December. A separate report released by the Institute for Supply Management showed U.S. service sector PMI inched up to 58.7 in January from a revised 57.7 in December, with a reading above 50 indicating growth in the service sector.

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