Earnings reports from Nike and FedEx, coupled with improving consumer confidence and inflation expectations, led the US stock market to continue its rebound on Wednesday (21) and posted its largest single-day gain so far this month.Dow JonesIt closed 526 points, or 1.6%, with S&P eThat fingerEach increased by about 1.5%,tax halfIt’s up more than 2%.
Oil prices rise as US crude inventories fall more-than-expected, energy stocks continue to lead gainsS&P 500 indexAmong major sectors, consumer staples and materials .SPLRCT gained the least, but still increased 0.8%.
Doubts that the Federal Reserve’s (Fed’s) long-term interest rate hikes could lead to an economic recession have recently enveloped US equities. As the year draws to a close,S&P 500 indexHeading for its worst year since 2008.
Nike(OF THE UNITED STATES) was up 12% at the close, while FedEx (FDX-USA) was up more than 3%. The two companies announced better-than-expected financial reports, giving relief to the recent decline in US equities. Carnival Cruise Line (CCL-USA) also closed more than 5% higher after reporting a smaller-than-expected loss for the prior quarter.
In terms of economic data, US existing home sales fell 7.7% in November, the 10th consecutive month of declines, and the decline was larger than usual. However, consumer confidence in December was the highest since April and beat market expectations as inflation expectations eased.
US Treasury yields fell broadly after breaking above 3.7% yesterday.10-year US Treasury yieldIt fell slightly to 3.67% on Wednesday and the 2-year US government bond yield, which is more sensitive to interest rate policy, fell about 4 basis points to 4.21%.dollar indexslightly up,JPYfall back on it.
In terms of political and economic news, Ukrainian President Volodymyr Zelenskiy traveled to the White House on Wednesday to meet with US President Joe Biden. Biden reiterated that the United States seeks a “just peace” and announced $1.85 billion in additional military aid to Ukraine, including the Patriot missile system to help Ukraine bolster its winter defenses.
Zelensky expressed his gratitude to the United States for their strong support, but also warned that the war is not over. He will address the US Congress later in the day.
In terms of the epidemic, according to data from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 655 million and the number of deaths has exceeded 6.67 million. More than 13.1 billion doses of vaccines have been administered in 184 countries around the world.
The performance of the four major US stock indexes on Wednesday (21):
Focus on the actions
The five kings of science and technology collectively bounced. Apple (AAPL-USA) up by 2.38%; Meta Platforms (META-USA) up 2.28%; Alphabet (GOOGL-USA) increased by 0.63%; Amazon (AMZN-USA) up 1.85%; Microsoft (MSFT-USA) up 1.09%.
Dow JonesConstituent shares led by Nike. Nike(OF THE UNITED STATES) +12.18%; boeing (BA-USA) up 4.09%; Kintor Heavy Industry (CAT-US) +2.8%; 3M (MMM-USA) up 2.19%; Verizon (VZ-USA) +2.14%; disney (DIS-US) down 0.11%; Walgreens (WBA-USA) down 2.35%.
tax halfOnly 2 constituent stocks received black. Supermicro (AMD-USA) up 4.04%; Broadcom (AVGO-US) and Asmol (ASML-US) both increased by 3.16%; Marvell (MRVL-US) increased by 2.8%; Huida (NVDA-USA) up 2.59%; Qualcomm (QCOM-USA) up 2.22%; intel (INTC-US) +1.48%; microns (MU-US) up 1.01%.
All Taiwan stock ADRs closed in the red. TSMC ADR(TSM-USA) +2.01%; ASE ADR (ASX-USA) +3.50%; UMC ADR (UMC-USA) +2.95%; Chunghwa Telecom ADR (US CHT) up 0.39%.
Company news
Nike(OF THE UNITED STATES) closed up 12.19%. The company recently announced that its financial report for the latest quarter was significantly better than expected, which encouraged growth in other sports and leisure brands.SKX-USA) finished up 4.16%, Lululemon (LULU-US) up 3.13%.
under armor(SAU-USA) closed up 5.21%. The company previously announced a new chief executive officer and board members, which will be the president of Marriott International (Marriott International), Stephanie Linnartz.
Carnival Cruise Line (CCL-USA) closed up 4.69%. Although announced revenue fell slightly short of expectations, Carnival’s recent quarter loss was down significantly from the same period last year. The CEO is optimistic that the strong momentum in bookings in December will continue, laying the groundwork for development in 2023.
microns (MU-US) closed up 1% on Wednesday, before falling 2.3% after hours after reporting last-quarter results that missed market estimates. When the financial report was announced, Chief Executive Sanjay Mehrotra also announced the implementation of austerity measures, including layoffs of around 10% next year and suspension of bonuses.
Economic data
- US Existing Home Sales in November Reported 4.09 Million, Expected 4.17 Million, Previous Value 4.43 Million
- US Conference Board Consumer Confidence Index in December reported 108.3, expected 101.2 and previously was 101.4
Wall Street analysis
Mike Bailey, director of research at FBB Capital Partners, said: “Following last week’s sell-off, investors are excited by the prospect of buying improved fundamentals at cheaper prices. On the economic data front, improving sentiment is also is good for investors. Sentiment, however, I think most investors are more concerned about inflation, the job market and corporate earnings right now.”
According to Sam Stovall, chief investment strategist at CFRA Research, the market is a bit oversold and earnings reports from Nike and FedEx provide the rationale for the stock market’s rebound.
Angelo Kourkafas, investment strategist at Edward Jones, said: “Strong corporate earnings and improving consumer confidence led to a rebound in equities, but there is still uncertainty in the market and there could be a lot of volatility at the start of the next year because we could be in a mild, medium recession.” But he also said the market had priced in the weaker economy.
Eastern Time will announce the US Personal Consumption Expenditure (PCE) Price Index for November on Thursday. CIBC Private Wealth US Chief Investment Officer David Donabedian said he would focus on the ability of US spending and income to resist inflation, but the market expects some PCE data to show weakness.
The numbers are all updated before the deadline, please refer to the actual quotation
