A man wearing a protective mask amid the coronavirus disease (COVID-19) outbreak, looks at a board displaying the Japanese yen exchange rate against the U.S. dollar outside a brokerage in Tokyo, Japan June 16, 2022.
A man wearing a protective mask amid the coronavirus disease (COVID-19) outbreak, looks at a board displaying the Japanese yen exchange rate against the U.S. dollar outside a brokerage in Tokyo, Japan June 16, 2022. Reuters / KIM KYUNG-HOON

A gauge of global stocks was higher for a fourth straight day in choppy trading on Wednesday as investors assessed the early stages of the U.S. corporate earnings season, while the dollar edged up ahead of a rate decision by the European Central Bank on Thursday.

On Wall Street, U.S. stocks were higher, led by gains on the Nasdaq as growth stocks were buoyed by a positive outlook from Netflix, which rose 3.86%.

With 60 companies in the S&P 500 having reported earnings, 78.3% have topped analyst expectations, according to Refinitiv data, tracking slightly below the 81% beat rate for the past four quarters but well above the 66% rate since 1994.

The Dow Jones Industrial Average rose 81.22 points, or 0.26%, to 31,908.27; the S&P 500 gained 30.46 points, or 0.77%, to 3,967.15; and the Nasdaq Composite added 187.86 points, or 1.6%, to 11,901.00.

Meanwhile, the U.S. dollar was slightly higher following three straight days of declines that left the greenback at two-week lows as expectations for upcoming rate hikes from the ECB and U.S Federal Reserve have shifted, with the market anticipating a larger 50 basis points hike from the ECB and the Fed hiking by 75 basis points as they attempt to combat inflation.

As recently as last week, it was widely expected the ECB would hike by 25 basis points while the Fed would likely raise rates by 100 basis points.

"The focus is more on let's see how earnings are holding up, what is the signal we get from earnings, what is the signal we get from profit margins, let's see if that helps to inform how we frame or contextualize the discussion from the ECB or what happens with the Fed," said Yung-Yu Ma, chief investment strategist at BMO Wealth Management in Chicago.

"It is really trying to piece together a very uncertain outlook and the market at different times is just putting different weight on specific developments, and right now it happens to be let's focus on earnings a bit to see if they seem to be holding up and that soft landing looks at least potentially feasible."

The pan-European STOXX 600 index lost 0.17% and MSCI's gauge of stocks across the globe gained 0.73%. The four straight days of gains lifted MSCI's index to a three-week high of 615.85.

European shares fluctuated between gains and losses as uncertainty swirled around gas supplies to the region and the future of Italian Prime Minister Mario Draghi.

The European Union told member states on Wednesday to cut gas usage by 15% until March as an emergency step after President Vladimir Putin warned that Russian supplies sent via the biggest pipeline to Europe could be reduced further and might even stop.

The dollar index rose 0.084%, with the euro down 0.09% to $1.0215.

The Japanese yen strengthened 0.07% versus the greenback at 138.10 per dollar, while Sterling was last trading at $1.1993, down 0.02% on the day.

In addition to the ECB, the Bank of Japan will also announce a policy decision on Thursday, but is not expected to make any changes to its ultra-loose monetary stance.

Benchmark 10-year notes last rose 3/32 in price to yield 3.0098%, from 3.019% late on Tuesday.

Following a volatile session on Tuesday, oil prices were lower after data from the Energy Information Administration showed U.S. crude stocks and distillate inventories fell while gasoline inventories rose.

U.S. crude recently fell 1.79% to $102.35 per barrel and Brent was at $105.79, down 1.45% on the day.