Wall Street Broad Jump – E24

Wall Street extended its rally on Wednesday after the benchmark indices broke a four-day losing streak yesterday.

This is what it looks like at closing time:

• The Dow Jones index rose 1.60 percent
• The Nasdaq index rose 1.54 percent
• The S&P 500 rose 1.49 percent

– The market was oversold in a way and I think he was looking for an excuse to do a ‘rise’. The Nike and Fedex numbers prove it, says chief strategist Sam Stovall at CRFA Research CNBCIn reference to the noticeable rise in both stocks after the quarterly figures on Tuesday.

Still, Stovall adds that he wonders if positive moods are long-lasting.

Nike pants

The giant sports shoes and equipment company, Nike, presented, on Tuesday evening, the results of the second quarter of its non-conforming financial year.

The turnover ended at $13.3 billion and the after-tax result was $1.33 billion. This corresponds to NOK 131 billion and NOK 13 billion.

However, the company’s development in China remains heavy, due in part to the country’s strict virus policy, according to Bloomberg.

Nike shares rose 12.19 percent.

Analysts had previously expected Nike sales to jump significantly, as the company offered large discounts during this period, according to Reuters news agency. This is, among other things, to get rid of excess stocks, which are widely accumulated in retail.

At the end of the first quarter, Nike had $9.7 billion in inventory, up 44 percent from a year earlier. At the end of the second quarter, the number was $9.3 billion, at noon on Tuesday.

Reduce costs for Fedex

Shipping and logistics company Fedex delivered its quarterly report last night. The report was characterized by weak demand and lower costs.

Adjusted earnings ended at $3.18 per share. Analysts had expected earnings of $2.80 per share, according to Bloomberg.

Revenue came in at $22.8 billion, but analysts had expected revenue of $23.7 billion.

Fedex is now announcing that it will cut costs by another $1 billion compared to its September forecast. This brings total savings to $3.7 billion for fiscal year 2023.

Fedex shares closed up 3.43 percent.

Increased confidence in the economy among US consumers

Consumer confidence that the US economy is moving in the right direction showed a new peak in December, according to Wednesday’s overview.

A certain increase in the consumer index was expected on the basis that inflation appears to be coming down somewhat and petrol prices are going down slightly.

But the increase announced on Wednesday shows a more marked increase than experts expected.

Confidence among consumers rebounded sharply in December and reversed the trend in October and November. Lynn Franco, director of economic indicators at The Conference Board, says the index hasn’t been this high since April.

Inflation in the US is the lowest since September, and fuel prices are showing a somewhat downward trend. The confidence index settled at 108.3 points in December, up from 101.4 points in the previous month.