A recovery revives hope in US and European stocks (Getty)
Good trading results from Nike (sportswear) and FedEx (shipping) allayed some investor fears about a drop in corporate earnings due to recession forecastsUS stocks rose for the second day in a row, while European stocks recorded their best day in nearly six weeks.
In trading on Wednesday, the Dow Jones Industrial Average was up 526 points, representing 1.6% of its value to start the day, and the Nasdaq and S&P 500 indexes gained nearly 1.5% the their value.
Sam Stoffol, chief investment officer at research firm CFRA, said markets overpriced dips during the last few daysAnd he was waiting for a reason to get up, which came with the economic results released by the companies. “But I don’t know,” Stofall told CNBC Business News Until what point Those excursions can continue.”
Nike’s share soared 12% after beating Wall Street expectations for quarterly earnings and revenue, and FedEx’s stock price rose 3.4% after announcing higher-than-expected earnings per share and successful trading. company in cost reduction.
At the same time, US consumer confidence data for December, which beat expectations and jumped to its highest level since last April, boosted investor sentiment in major stock markets.
Also on Wednesday, European equities rallied, benefiting from improving US sentiment and rising retail earnings. The European Stoxx 600 index finished the trading day, up 1.7%, and shares of companies in the consumer accessories sector, such as Adidas and Puma, led gains, after profits from their American competitor Nike have increased.
Relatedly, oil prices rose more than two dollars a barrel at the close as data showed a larger-than-expected drop in US crude stockpiles, but gains were curtailed by a snowstorm that is expected to affect travel to the United States.
Brent crude futures for February delivery rose $2.21, or 2.76%, to $82.20 a barrel, while US West Texas crude futures rose $2.06 , or 2.7%, to $78.29 a barrel.
U.S. crude stockpiles fell by 5.89 million barrels, according to data from the US Energy Information Administration, compared with estimates for a decline of 1.66 million barrels.
Market sources said data from the American Petroleum Institute showed inventories fell by 3.1 million barrels on Tuesday for the week ending Dec. 16.
