Dow closes up 500 points, lifted by upbeat earnings, strong consumer confidence data; European markets close 1.7% higher as investor sentiment brightens
Stocks jumped Wednesday, rising for a second day, after upbeat earnings reports from two bellwethers raised hopes that corporate earnings may be better than feared even with a potential recession.
The Dow Jones Industrial Average gained 526.74 points, or 1.6%, to finish at 33,376.48. The S&P 500 surged 1.49% to settle at 3,878.44, while the Nasdaq Composite jumped 1.54% to end at 10,709.37.
Nike surged 12% after beating Wall Street’s expectations for quarterly earnings and revenue. The results lifted other retail stocks. The sports apparel maker also showed progress in its attempt to clear through inventory, posting a decline over the previous quarter.
Meanwhile, FedEx gained 3.4% after reporting earnings per share that beat estimates. The company also shared a slew of cost-cutting plans. Better-than-expected consumer confidence data for December, which jumped to the highest level since April, also boosted investor sentiment.
European markets were in positive territory on Wednesday, as they shook off some of the losses from recent sessions.
The Stoxx index provisionally closed 1.7% higher, and all sectors and major bourses were in the green. Retail led gains, climbing 2.8%, followed by financial services, up 2.5%, and mining stocks, up 2.2%.
Shares of European sportswear brands have made gains after Nike beat its latest earnings estimates.
Puma topped the pan-European Stoxx index with gains of 7.4%, followed by JD Sports and Adidas, which were up 7% and 6.6% respectively.
Source: CNBC, Investing.com