The earnings reports of Nike and FedEx, together with the improvement of consumer confidence and inflation expectations, led the U.S. stock market to continue its rebound on Wednesday (21st) and recorded the largest single-day gain so far this month.Dow JonesIt ended up 526 points, or 1.6%, with the S&P andThat fingerEach rose by regarding 1.5%,fee halfIt rose more than 2%.
Oil prices rise as U.S. crude stockpiles fall more than expected, energy stocks still lead gainsS&P 500 IndexAmong the major sectors, consumer staples and materials .SPLRCT gained the least, but were still up 0.8 percent.
Doubts that the Federal Reserve (Fed)’s long-term interest rate hikes may lead to an economic recession have shrouded US stocks recently. As the year draws to a close,S&P 500 IndexHeading for its worst year since 2008.
Nike(OF THE US) soared 12% at the close, while FedEx (FDX-US) rose more than 3%. The two companies have announced better-than-expected financial reports, bringing breathing space to the recent downturn in US stocks. Carnival Cruise Line (CCL-US) also closed more than 5% higher following reporting a smaller-than-expected loss for the previous quarter.
In terms of economic data, US existing home sales fell by 7.7% in November, the 10th consecutive month of decline, 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.
U.S. Treasury yields fell broadly, following a break above 3.7% yesterday.10-Year U.S. Treasury YieldIt fell slightly to 3.67% on Wednesday, and the 2-year U.S. bond yield, which is more sensitive to interest rate policy, fell by regarding 4 basis points to 4.21%.dollar indexup slightly,JPYfall back.
In terms of political and economic news, Ukrainian President Volodymyr Zelenskiy went to the White House on Wednesday to meet with U.S. 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 strengthen its winter defenses.
Zelensky expressed his gratitude to the United States for its strong support, but also warned that the war is not over. He will speak to the U.S. 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 (21st):
Focus stocks
The five kings of science and technology rebounded collectively. apple (AAPL-US) up 2.38%; Meta Platforms (META-US) up 2.28%; Alphabet (GOOGL-US) rose 0.63%; Amazon (AMZN-US) up 1.85%; Microsoft (MSFT-US) up 1.09%.
Dow JonesConstituent stocks led by Nike. Nike(OF THE US) up 12.18%; Boeing (BA-US) up 4.09%; Kintor Heavy Industry (CAT-US) up 2.8%; 3M (MMM-US) up 2.19%; Verizon (VZ-US) up 2.14%; Disney (DIS-US) down 0.11%; Walgreens (WBA-US) down 2.35%.
fee halfOnly 2 constituent stocks received black. Supermicro (AMD-US) up 4.04%; Broadcom (AVGO-US) and Asmol (ASML-US) both rose 3.16%; Marvell (MRVL-US) rose 2.8%; Huida (NVDA-US) up 2.59%; Qualcomm (QCOM-US) up 2.22%; Intel (INTC-US) up 1.48%; Micron (MU-US) up 1.01%.
All ADRs of Taiwan stocks closed in red. TSMC ADR(TSM-US) up 2.01%; ASE ADR (ASX-US) up 3.50%; UMC ADR (UMC-US) up 2.95%; Chunghwa Telecom ADR (CHT US) up 0.39%.
Corporate News
Nike(OF THE US) closed up 12.19%. The company recently announced that its financial report for the last quarter was easily better than expected, which encouraged other sports and leisure brands to rise. Skechers (SKX-US) closed up 4.16%, Lululemon (LULU-US) up 3.13%.
Under Armour(UAA-US) closed up 5.21%. The company earlier announced a new chief executive and board members. The new CEO will be Marriott International (Marriott International) President Stephanie Linnartz.
Carnival Cruise Line (CCL-US) closed up 4.69 percent. Even though the announced revenue was slightly lower than expected, Carnival’s loss in the last quarter fell significantly compared with the same period last year. The CEO is optimistic that the strong momentum of bookings in December will continue, laying the foundation for development in 2023.
Micron (MU-US) closed up 1 percent on Wednesday, before falling 2.3 percent following hours following 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 regarding 10% next year and suspension of bonuses.
Economic data
- U.S. November existing home sales reported 4.09 million, expected 4.17 million, previous value 4.43 million
- The Conference Board Consumer Confidence Index in the United States in December reported 108.3, expected 101.2, and the previous value was 101.4
Wall Street Analysis
Mike Bailey, director of research at FBB Capital Partners, said: “After the sell-off of the past week, investors are excited regarding the prospect of buying improved fundamentals at cheaper prices. On the economic data front, improving consumer confidence is also beneficial to investors. Sentiment, however, I think most investors are most concerned regarding inflation, the labor market and corporate earnings right now.”
According to Sam Stovall, chief investment strategist at CFRA Research, the market is a bit oversold, and the earnings reports from Nike and FedEx provide the rationale for the stock market rebound.
Angelo Kourkafas, investment strategist at Edward Jones, pointed out: “Upbeat corporate earnings and improving consumer confidence led to a rebound in stocks, but there is still uncertainty in the market and there may be a lot of volatility early next year because we may be in a mild recession environment. Medium.” But he also said the market had priced in the weaker economy.
Eastern time on Thursday will announce the US core personal consumption expenditures (PCE) price index for November. CIBC Private Wealth US Chief Investment Officer David Donabedian said he would focus on whether US spending and income can withstand 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
