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Wall Street ends with help from Nike, FedEx and consumer sentiment

Wall Street ends with help from Nike, FedEx and consumer sentiment
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  • Consumer confidence picks up in December
  • Data shows a drop in home sales in November
  • Nike jumps on strong second quarter results
  • FedEx soars on cost-cutting plans
  • Indices up: Dow 1.60%, S&P 1.49%, Nasdaq 1.54%

Dec 21 (Reuters) – Wall Street’s three main stock indexes closed on Wednesday with their biggest daily gains so far in December helped by bullish Nike. (NKE.N) and fedex (FDX.N) quarterly earnings, in addition to improving consumer confidence and easing investors’ inflation expectations.

Shares of Nike Inc soared 12% after exceeding earnings expectations for its second quarter due to strong holiday demand from North American shoppers, while FedEx ended up 3.4% and shares of cruise operator Carnival Corp. (CCL.N) jumped 4.7% after destiny a lower-than-expected quarterly loss.

FedEx Corp (FDX.N)which triggered a market sell-off in September after releasing financial forecasts, provided financial guidance and announced plans for cost cuts of $1 billion.

Also, USA consumer confidence rose to an eight-month high in December as inflation receded and the labor market remained strong, while 12-month inflation expectations fell to 6.7%, the lowest level since September 2021.

“We’re seeing a rally across the board. Confidence has been helped by upbeat corporate talk and improving consumption,” said Angelo Kourkafas, investment strategist at Edward Jones in St. Louis, referring to Nike and FedEx.

The Dow Jones Industrial Average (.DJI) rose 526.74 points, or 1.6%, to 33,376.48, the S&P 500 (.SPX) 56.82 points, or 1.49% gain, to 3,878.44 and the Nasdaq Composite (.IXIC) added 162.26 points, or 1.54%, to 10,709.37.

energy companies (.SPNY) they were the biggest gainers among the S&P’s 11 major industry sectors, adding 1.89%, as oil futures rose.

The smallest winner among sectors was consumer staples. (.SPLRCS)which ended with a rise of 0.8%.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., December 7, 2022. REUTERS/Brendan McDermid

Still, data on Wednesday also showed that the US. homes for sale it fell 7.7% to a two-and-a-half-year low in November as the housing market was hit by higher mortgage rates. But the data may fuel investor hope that the Fed may ease its tightening policy.

“At the macro level, you have economic weakness, but at the micro level you have companies that are resilient and offer positive expectations from an earnings perspective,” said Brian Price, director of investment management at Commonwealth Financial Network in Waltham, Massachusetts. “That combination is going to be positive.”

Fears of a recession following the US central bank’s biggest interest rate hikes have weighed heavily on stocks and these fears have put the S&P on track for its biggest annual drop since 2008 and a drop in December.

“There is still a lot of uncertainty and we are likely to see a lot of volatility early in the year as we could be in a mild recession environment,” said Kourkafas of Edward Jones, but believes the market has already been priced weaker. economy

“We still have some headwinds ahead, but we may not have to price in a recession twice. So far, what we’ve seen this year has already priced in a mild recession.”

AMC Entertainment Holdings Inc. (AMC.N) ended with 4.3% after the operator of the cinema chain said so suspended conversations to acquire certain assets of the bankrupt Cineworld Group (CINE.L).

Advancing issuances outnumbered declining ones on the New York Stock Exchange by a ratio of 3.43 to 1; on Nasdaq, a 2.10-to-1 ratio favored advancers.

The S&P 500 posted 5 new 52-week highs and 3 new lows; the Nasdaq Composite posted 69 new highs and 268 new lows.

On US exchanges, 9.81 billion shares changed hands, compared with an average of 11.16 billion over the past 20 sessions.

Reporting by Sinéad Carew in New York, Shubham Batra, Amruta Khandekar, Ankika Biswas and Johann M Cherian in Bengaluru; Edited by Shounak Dasgupta, Maju Samuel, and Aurora Ellis

Our standards: The Thomson Reuters Trust Principles.

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