Wall Street's three main stock indexes closed higher in December with their biggest daily gains ever, as Nike and FedEx reported quarterly earnings as well as improving consumer confidence and easing inflation expectations .
Wall Street's three main stock indexes closed higher on Wednesday with their biggest daily gains so far in December, as quarterly earnings from Nike and FedEx boosted consumer confidence and lowered inflation expectations from investors. I got help.
Shares of Nike Inc rose 12% after beating profit expectations for its second quarter on strong holiday demand from North American shoppers, while FedEx gained 3.4% and shares of cruise operator Carnival Corp. That was an increase of 4.7%, which was a smaller than expected quarterly loss.
FedEx Corp, which triggered a market selloff in September after pulling financial forecasts, provided financial guidance and announced plans to cut $1 billion in costs.
Also, US consumer confidence rose to an eight-month high in December as inflation retreated and the labor market remained strong, while 12-month inflation expectations fell to 6.7%, the lowest since September 2021.
"We're seeing a broad rally. It's been helped by improving corporate commentary and consumer confidence," said Angelo Kourkafas, investment strategist at Edward Jones in St. Louis, referring to Nike and FedEx.
The Dow Jones Industrial Average rose 526.74 points, or 1.6%, to 33,376.48, the S&P 500 rose 56.82 points, or 1.49%, to 3,878.44 and the Nasdaq Composite rose 162.26 points, or 1.54%, to 10,709.37.
Energy firms were the biggest gainers among the S&P's 11 major industry sectors, with oil futures rising 1.89%.
The smallest gainer among these sectors was consumer staples, which ended up 0.8%.
Still, Wednesday's data also showed that US existing home sales plunged 7.7% in November to a 2-1/2-year low as the housing market was hurt by higher mortgage rates. But the data could raise investor hopes 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 are offering positive expectations from an earnings perspective," said Brian Price, head of investment management at Commonwealth Financial Network in Waltham, Mass. going to be positive."
Recession fears weighed heavily on equities after a prolonged interest rate hike by the U.S. central bank put the S&P on track for its biggest annual decline since 2008 and a decline in December.
"There is still a lot of uncertainty and we are likely to see a lot of volatility at the start of the year, as we could be in a mild bearish environment," said Edward Jones' Kourkafas. ,
"We still have some headwinds, but we probably won't have to pay the price of a recession twice. What we've seen so far this year has already paid the price for a mild recession."
AMC Entertainment Holdings Inc closed up 4.3% after the cinema-chain operator suspended talks to acquire certain assets of bankrupt Cineworld Group.
Forward issues declined in the ratio of 3.43-to-1 on the NYSE; On the Nasdaq, the ratio was 2.10-to-1 in favor of the advancers.
The S&P 500 posted 5 new 52-week highs and 3 new lows; The Nasdaq Composite recorded 69 new highs and 268 new lows.
9.81 billion shares changed hands on US exchanges, compared to an average of 11.16 billion for the previous 20 sessions.
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