Nike earnings impress Wall Street
2022.12.21 09:36
Nike earnings impress Wall Street
Budrigannews.com – Wall Street’s main stock indexes were set to open higher on Wednesday as investors awaited additional economic data for clues about the direction of future interest rate hikes and Nike’s better-than-expected results.
The Nike Company after reporting its best quarterly revenue growth in more than a decade, barring one quarter, and beating profit expectations on strong holiday demand from North American shoppers, the stock surged 11.7% in premarket trading.
Peers Athletica Lululemon (NASDAQ:) Inc., and Under Armour Inc. and the manufacturer of Vans sneakers, VF Corp. climbed between 2.4 and 4.6 percent.
NYSE: FedEx Corp., which pulled financial forecasts in September and sparked a market selloff, rose 5.1% as a result of the delivery company’s plans to cut $1 billion more in costs.
Adam Sarhan, chief executive at 50 Park Investments in New York, stated, “Most people think we are heading toward a recession, but when earnings like Nike and FedEx are strong, then all of a sudden that could pave the way for higher (stock) prices next year.”
“It appears that this could be just a little seasonal bounce until the end of the year,” as “the underlying conditions remain very weak.”
After early losses caused by the rise in Treasury yields following the unexpected monetary policy change made by the Bank of Japan, Wall Street’s main indexes ended Tuesday slightly higher.
Despite signs of inflation cooling, fears of a recession have weighed heavily on stocks since the U.S. central bank’s policy meeting last week due to its prolonged interest rate hikes.
However, on the back of positive earnings, decreasing price pressures, and hopes that the Federal Reserve will slow its rate hikes, the benchmark and were on track for their first quarterly gains of the year, rising by 6.6% and 14.4%, respectively.
Existing home sales are anticipated to decline by 5.4% in November, which is lower than the 5.9% decline that occurred a month earlier. The consumer confidence survey for December, which is scheduled to be released at 10 a.m. Eastern Time (ET), is expected to show a slight improvement in business conditions at 101.0 from 100.2.
The Fed’s subsequent course of interest rate increases will likely be determined by additional data expected throughout the week on core inflation and the labor market.
We were up 305 points, or 0.92 percent, 27.5 points, or 0.71 percent, and 57.75 points, or 0.52%, at 8:09 a.m. ET.
NASDAQ: Tesla After a report that the maker of electric vehicles plans to cut jobs and stop hiring, Inc lost some of its early gains and ended up up 1.9%.
More SMBC bought competitor Goshawk for $6.7 billion
When Elon Musk announced that he would step down as CEO of Twitter once he found a replacement, the news boosted the shares of the company.
Due to low participation, market volumes are expected to decrease this week before the Christmas and New Year’s holidays.
