Stocks rally as Wall Street struggles with the sell-off

US stocks rose at the open on Wednesday, as strong earnings from Nike and FedEx provided a boost to investors looking to recapture their recent bout of selling.

S&P 500 Index (^ The Salafist Group for Preaching and Combat(up 0.7%, while futures on the Dow Jones Industrial Average rose (^ DJI) jumped 300 points, up 0.9%. Nasdaq Technology Heavy Composite (^ ix) advanced 0.4%.

Nike (NKEShares were up 13% at the open after the retailer won handily Second Quarter profit and revenue forecasts and You reported a decrease in inventories from the previous period. While the year-over-year backlog was still rolling in, Nike CEO John Donahue said he believed the company Exceeding peak inventory.

FedEx Corporation stock (FDX) jumped nearly 6% after the company disclosed its existence Strong cost saving efforts. Chief Executive Officer Raj Subramaniam said FedEx has identified an additional $1 billion in savings beyond the forecast it provided in September as part of its “ongoing transformation while navigating a weaker demand environment.” FedEx launched a deep sell-off in September when it issued a warning about its outlook for the US economy.

Meanwhile, ritual aid (radInventory fell 7.7% after the pharmacy chain reported a loss in its fiscal third quarter, hurt by declines in COVID vaccines and tests.

Tesla (TSLA) remained in the spotlight after falling another 8% to a two-year low on Tuesday — a drop that followed a 16% drop last week. CEO Elon Musk confirmed on Twitter late Tuesday that he will step down as Twitter chief once he finds a replacement. Shares rose slightly at the open on Wednesday.

Separately, Tesla is expected to freeze hiring and Hand over another round of layoffs Next quarter, in Report from Electrekwhich cited a source familiar with the matter.

Oil prices rose for the third day in a row as traders weighed on a report showing a larger-than-expected drop in US stockpiles against demand concerns and an expected blizzard domestically. West Texas Intermediate (WTI) crude futures rose 2% to nearly $78 a barrel.

The economic calendar will bring investors the latest Consumer Sentiment Survey from the Conference Board at 10:00 AM ET.

Monitors on the floor of the New York Stock Exchange (NYSE) show Federal Reserve Chairman Jerome Powell during a press conference, Dec. 14, 2022. REUTERS/Andrew Kelly

Wednesday’s moves come after a volatile session on Tuesday that followed A hawkish move by the Bank of Japan – Seen as the last of the central banks with easy monetary policies – to raise the maximum yield on 10-year government bonds after the US Federal Reserve, European Central Bank and Others raised interest rates last week.

Investors were hoping to get Santa Claus gathering – The steady rise in the stock market that usually occurs at the end of December, and is usually defined as covering the last five trading days of the year and the first two days of the new year. But the fears are over “Higher for Longer” Prices A looming recession dampened seasonal optimism.

Alexandra Semenova is a correspondent at Yahoo Finance. Follow her on Twitter @employee

Click here for the latest Yahoo Finance stock tickers

Click here for the latest stock market news and in-depth analysis, including the events that move stocks

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for an Apple or android

Follow Yahoo Finance on Twitter TwitterAnd the FacebookAnd the InstagramAnd the FlipboardAnd the linkedinAnd the Youtube

Leave a Reply

Your email address will not be published. Required fields are marked *