Stocks close sharply higher as Nike, consumer sentiment spurs Wall Street rebound

U.S. stocks rose on Wednesday as strong earnings from Nike and FedEx, along with positive consumer confidence data, lifted sentiment after a recent sales battle.

S&P 500 (^GSPC) rose 1.5%, while the Dow Jones Industrial Average (^DJI) jumped more than 500 points, or 1.6%. The technology-heavy Nasdaq Composite (^IXIC) also increased by 1.5 per cent.

An upbeat gauge of consumer confidence helped lift sentiment on Wednesday. That The Conference Board’s Consumer Confidence Index rose to 108.3 this month — the highest since April — from an upwardly revised 101.4 reading in November, showed data published on Wednesday. Economists expected a figure of 101, according to Bloomberg consensus estimates.

Nike (OF) stock rose 12.2% after the retailer beat second quarter profit and revenue expectations and reported a drop in inventories from the previous period. While the pileup was still up year-over-year, Nike CEO John Donahoe said he believed in the company was past its storage peak.

Shares of FedEx Corporation (FDX) jumped 3.4% after the company revealed its aggressive savings. CEO Raj Subramaniam said FedEx identified an additional $1 billion in savings beyond the forecast it provided in September as part of its “ongoing transformation while navigating a weaker demand environment.” FedEx triggered a deep sell-off in September when it issued a warning about its outlook for the US economy.

Meanwhile, Rite Aid’s (ADVICE) stock fell about 17.5% after the drugstore chain reported a third-quarter loss, weighed down by a drop in COVID vaccinations and testing.

Tesla (TSLA) remained in the spotlight after falling 8% to a fresh two-year low on Tuesday — a drop that followed a 16% decline last week. CEO Elon Musk confirmed on Twitter late Tuesday that he would step down as head of Twitter once he finds a replacement. Shares of Tesla closed roughly flat on Wednesday afternoon.

Separately, the electric car manufacturer is expected to freeze employment and deliver another round of layoffs next quarter per report from Electrekwhich cited a source familiar with the matter.

Oil prices rose for a third straight day as traders weighed a report showing a bigger-than-expected drop in US inventories against concerns over demand and an expected blizzard at home. West Texas Intermediate (WTI) crude oil futures rose nearly 3% to top $78 a barrel. barrel.

The screens on the trading floor of the New York Stock Exchange (NYSE) show Federal Reserve Chairman Jerome Powell during a news conference after the Federal Reserve announced it will raise interest rates by half a percentage point, in New York City, U.S., December 14, 2022. REUTERS /Andrew Kelly

Monitors on the floor of the New York Stock Exchange (NYSE) show Federal Reserve Chairman Jerome Powell during a press conference December 14, 2022. REUTERS/Andrew Kelly

Wednesday’s move comes after a volatile session on Tuesday that followed a hawkish move by the Bank of Japan – seen as the last of the central banks with easy monetary policies – to raise the ceiling on its 10-year Treasury yield after the US Federal Reserve, the European Central Bank and others raised interest rates last week.

Investors have been hoping for one Santa Claus convention — a steady rise in the stock market that typically occurs in late December, typically defined as covering the last five trading days of the year and the first two of the new year. But the worries are over “higher for longer” prices and a looming recession has dampened seasonal optimism.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Click here to view the latest trending stock tickers on the Yahoo Finance platform

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for Apple or Android

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedInand Youtube

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button