US stocks rallied on Wednesday as strong earnings from Nike and FedEx, along with upbeat consumer confidence data, lifted sentiment after a recent wave of selling.
The S&P 500 (^GSPC) jumped 1.5%, while the Dow Jones Industrial Average (^ DJI) jumped more than 500 points, or 1.6%. The technology-intensive Nasdaq composite (^IXIC) also rose 1.5%.
An upbeat indicator of consumer confidence helped lift sentiment on Wednesday. the Conference Board Consumer Confidence Index rose to 108.3 this month – the highest since April – from an upwardly revised reading of 101.4 in November, data released Wednesday showed. Economists had expected a figure of 101, according to Bloomberg consensus estimates.
Nike (NKE) shares soared 12.2% after the retailer easily beat second quarter profit and revenue expectations and reports a drop in inventory of the previous period. While stacking was still up year over year, Nike CEO John Donahoe said he believes the company had passed its inventory peak.
FedEx Corporation Stock (FDX) jumped 3.4% after the company disclosed its aggressive cost reduction efforts. CEO Raj Subramaniam said FedEx had identified $1 billion in additional savings beyond the guidance it gave in September as part of its “ongoing transformation while navigating a weaker demand environment.” . FedEx triggered a sell-off in September when it issued a warning about its outlook for the US economy.
Meanwhile, Rite Aid (GDR) the stock fell about 17.5% after the drugstore chain announced losses in the third fiscal quarter, weighed down by a drop in vaccinations and COVID tests.
You’re here (TSLA) remained in the limelight after slipping 8% to a new two-year low on Tuesday – a drop that came after falling 16% last week. Chief executive Elon Musk confirmed on Twitter on Tuesday evening that he would be stepping down as Twitter chief once he finds a replacement. Tesla shares closed around a flat spot on Wednesday afternoon.
In addition, the electric vehicle manufacturer should freeze hiring and deliver another round of layoffs next quarter, electrek reportwho cites a source familiar with the matter.
Oil prices rose for a third straight day as traders weighed a report that showed a bigger-than-expected decline in U.S. inventories against demand concerns and an expected domestic snowstorm. West Texas Intermediate (WTI) crude futures rose nearly 3% to $78 a barrel.
Wednesday’s moves come after a choppy session on Tuesday that followed a hawkish move by the Bank of Japan – seen as the last of the central banks to pursue easy money policies – to raise the cap on its 10-year government bond yield after the US Federal Reserve, European Central Bank and others raised interest rates Last week.
Investors hoped for a Santa’s Rally – a steady rise in the stock market that usually occurs at the end of December, generally defined as covering the last five trading days of the year and the first two of the new year. But concerns about “higher for longer” rates and a looming recession dampened seasonal optimism.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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