US stocks rally on consumer data, Nike results
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Traders work on the floor of the New York Stock Exchange, during afternoon trading, on Dec 21, 2022 in New York City.
PHOTO: AFP
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NEW YORK - Wall Street stocks jumped on Wednesday following a surprisingly strong consumer confidence report and Nike results that topped estimates.
The closely-watched consumer confidence index jumped more than expected to 108.3 this month, markedly higher than November’s figure, according to think-tank The Conference Board.
The strong reading – which reflects sentiment during a critical month for holiday shopping – reflected a boost from lower gasoline prices, said Ms Lynn Franco, the Conference Board’s senior director of economic indicators.
Meanwhile, sports giant Nike surged 12.2 per cent as it reported better-than-expected profits and described progress in selling off excess inventory.
The Dow Jones Industrial Average finished up 1.6 per cent at 33,376.48.
The broad-based S&P 500 advanced 1.5 per cent to 3,878.44, while the tech-rich Nasdaq Composite Index also rose 1.5 per cent to 10,709.37.
Analysts said the market was primed for a rebound after four straight gloomy sessions from the middle of last week to Monday, on recession worries amid aggressive central bank efforts to counter inflation.
“The news was too good today and that has made the many Grinches on Wall Street tentatively throw in the towel,” said Mr Edward Moya of the OANDA trading platform.
Among other stocks, FedEx jumped 3.4 per cent after announcing additional cost cuts as it contends with lacklustre demand for delivery services. AFP
