Stocks gain as Wall Street fights back from sell-off

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) rose 1.1%, while futures on the Dow Jones Industrial Average (^DJI) jumped more than 400 points, or 1.3%. The technology-heavy Nasdaq Composite (^IXIC) advanced 1.1%.

An upbeat gauge of consumer confidence also lifted the mood early Wednesday. 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, data released Wednesday showed. Economists expected a figure of 101, per Bloomberg consensus estimates.

Nike (NKE) shares soared 13% 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 4% 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 tanked nearly 17% 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 roughly flat.

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.



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