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PayPal Profit, ADP Data, Uber Deals: 3 Things to Watch

Published 02/02/2021, 03:44 PM
Updated 02/02/2021, 03:50 PM
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By Liz Moyer

Investing.com -- The Dow rallied nearly 600 points on Tuesday as the short selling squeeze in stocks like GameStop (NYSE:GME) and AMC ran out of steam.

Attention turned to efforts to fight the pandemic and its economic fall out. Pfizer Inc (NYSE:PFE) said it would pull forward its vaccine production schedule to get more of the drug to market by May rather than mid-summer. More Americans are getting the vaccine, and new infection rates are falling.

On Capitol Hill, lawmakers continued to debate another economic relief package, but the two sides are far apart on the dollar amount. President Joe Biden wants another $1.9 trillion in relief, while Republicans have countered with a $600 billion package after the two sides met at the White House this week.

Traders await quarterly results from tech giants Amazon.com Inc (NASDAQ:AMZN) and Alphabet Inc Class A (NASDAQ:GOOGL) after the closing bell.

Here are three things that could affect markets tomorrow:

1. Earnings continue to pour in

After big reports Tuesday night from Alphabet and Amazon, a couple of pandemic success stories report on Wednesday. Analysts expect PayPal Holdings Inc (NASDAQ:PYPL) to report earnings per share of 99 cents on revenue of $6.08 billion. Grubhub Inc (NYSE:GRUB) is seen reporting earnings of 7 cents a share on revenue of $500 million.

2. Jobs data puts focus on recovery

ADP will publish its employment change number for January, and it could set the tone for negotiations over a relief package in Washington. It is expected to show gains of 49,000 when it comes out at 8:15 AM ET (1215 GMT). In December, the number was a negative 123,000.

3. Uber consolidates pandemic services?

Uber Technologies Inc (NYSE:UBER) jumped on Tuesday after it announced a deal to acquire alcohol-delivery service Drizly for $1.1 billion.  Drizly will be incorporated into the Uber Eats delivery business, and the deal is expected to close in the first half of 2021. Just a month ago, Uber closed on a $2.6 billion deal to buy Postmates.

 

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