U.S. stocks pushed higher at Wednesday’s open, as strong earnings from Nike and FedEx offered a boost to investors looking to claw back from a recent bout of selling.
The S&P 500 (^GSPC) gained 0.7%, while futures on the Dow Jones Industrial Average (^DJI) jumped 300 points, or 0.9%. The technology-heavy Nasdaq Composite (^IXIC) advanced 0.4%.
Nike (NKE) shares soared 13% at the open after the retailer handily beat second-quarter profit and revenue expectations and reported a decline in inventories from the previous period. While the pileup was still up year-over-year, Nike CEO John Donahoe said he believed the company was past its inventory peak.
Shares of FedEx Corporation (FDX) jumped nearly 6% after the company revealed its aggressive cost saving efforts. CEO Raj Subramaniam said FedEx identified an additional $1 billion in savings beyond the forecast it gave in September as part of its “ongoing transformation while navigating a weaker demand environment.” FedEx sparked a deep selloff in September when it issued a warning about its outlook for the U.S. economy.
Meanwhile, Rite Aid’s (RAD) stock sank 7.7% after the drugstore chain reported losses in the fiscal third quarter, weighed down by a drop-off in COVID vaccinations and testing.
Tesla (TSLA) remained in the limelight after sliding another 8% to a fresh two-year low on Tuesday – a decline that came after dropping 16% last week. Chief Executive Elon Musk confirmed on Twitter late Tuesday that he would step down as head of Twitter once he finds a replacement. Shares were up slightly at Wednesday’s open.
Separately, Tesla is expected to freeze hiring and deliver another round of layoffs next quarter, per a report from Electrek, which cited a source familiar with the matter.
Oil prices rose for a third straight day as traders weighed a report that showed a larger-than-expected drop in U.S. stockpiles against worries over demand and an expected snowstorm domestically. West Texas Intermediate (WTI) crude futures were up 2% to nearly $78 per barrel.
The economic calendar will bring investors the Conference Board’s latest consumer confidence survey at 10:00 a.m. ET.
Wednesday’s moves come after a volatile session Tuesday that followed a hawkish move by the Bank of Japan – seen as the last of central banks with easy money policies – to raise the cap on its 10-year government bond yield after the U.S. Federal Reserve, European Central Bank, and others raised interest rates last week.
Investors have been hoping for a Santa Claus rally — a steady rise in the stock market that typically occurs at the end of December, typically defined as covering the last five trading days of the year and first two of the new year. But concerns over “higher for longer” rates and a looming recession have dampened seasonal optimism.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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Read More:Stocks rise as Wall Street fights back from sell-off
2022-12-21 14:35:38
