Stock market news live updates: Stocks close sharply higher as Nike, consumer sentiment spur Wall Street rebound

·Reporter

December 21, 2022 at 4:06 PM·3 min read

U.S. stocks rallied Wednesday as strong earnings from Nike and FedEx, along with upbeat consumer confidence data, lifted sentiment after a recent bout of selling.

The S&P 500 (^GSPC) surged 1.5%, while the Dow Jones Industrial Average (^DJI) jumped more than 500 points, or 1.6%. The technology-heavy Nasdaq Composite (^IXIC) also advanced 1.5%.

An upbeat gauge of consumer confidence helped raise the mood on 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 12.2% 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 3.4% 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 sell-off in September when it issued a warning about its outlook for the U.S. economy.

Meanwhile, Rite Aid's (RAD) stock tanked about 17.5% 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 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 of Tesla closed around flat Wednesday afternoon.

Separately, the electric vehicle maker 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.

I will resign as CEO as soon as I find someone foolish enough to take the job! After that, I will just run the software & servers teams.
— Elon Musk (@elonmusk) December 21, 2022

Oil prices rose for a third straight day as traders weighed a report that showed a larger-than-expected drop in U.S. stockpiles against worries over demand and an expected snowstorm domestically. West Texas Intermediate (WTI) crude futures were up nearly 3% to top $78 per barrel.

Screens on the trading floor at New York Stock Exchange (NYSE) display the Federal Reserve Chair Jerome Powell during a news conference after the Federal Reserve announced interest rates will raise half a percentage point, in New York City, U.S., December 14, 2022. REUTERS/Andrew Kelly — Screens on the floor at New York Stock Exchange (NYSE) show Federal Reserve Chair Jerome Powell during a news conference, December 14, 2022. REUTERS/Andrew Kelly (Andrew Kelly / reuters)

Wednesday’s moves come after a volatile session Tuesday that followed a hawkish move by the Bank of Japan – seen as the last of central banks with easy money policies – to raise the cap on its 10-year government bond yield after the U.S. Federal Reserve, European Central Bank, and others raised interest rates last week.

Investors have been hoping for a Santa Claus rally — a steady rise in the stock market that typically occurs at the end of December, typically defined as covering the last five trading days of the year and first two of the new year. But concerns over “higher for longer” rates and a looming recession have dampened seasonal optimism.

—

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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