Nike Surges 12.2% After Results Beat Expectations

Stocks rose on Wall Street Wednesday, lifting major indexes into the green for the week as investors welcomed a report showing consumer confidence is holding up better than expected. That’s despite the Federal Reserve’s campaign to fight inflation by reining in the economy with sharp increases in interest rates. The S&P 500 rose 56.82 points, or 1.5%, to 3,878.44. The Dow Jones Industrial Average rose 526.74 points, or 1.6%, to 33,376.48 with a lot of help from Nike, which soared after reporting better-than-expected results, the AP reports. The Nasdaq rose 162.26 points, or 1.5%, to 10,709.37. Treasury yields mostly fell.

Technology companies powered a big share of the rally. Apple rose 2.4%. Health care and financial company stocks also helped lift the market. Eli Lilly rose 2.3% and Bank of America added 1.5%. Nike surged 12.2% for the biggest gain among S&P 500 stocks after reporting results that trounced analysts' estimates. FedEx rose 3.4% after reporting strong earnings. Energy stocks gained ground as US crude oil prices settled 2.9% higher. Hess gained 3.3% Small company stocks also gained ground, lifting the Russell 2000 index 1.6% higher. Consumer confidence is surprisingly strong, despite inflation squeezing wallets. The Conference Board reported Wednesday that its consumer confidence index rose to 108.3 in December, up from 101.4 in November.

It’s a sharp rebound, pushing the index to its highest level since April. Last month’s figure was the lowest since July. "The news has delivered a kind of a sweet spot for the Federal Reserve," says Megan Horneman, chief investment officer at Verdence Capital Management. "The consumer is staying relatively resilient." Consumer spending, along with the employment market, has been another strong area of the economy that has helped protect it from slipping into a recession. Wall Street has been hoping that the Fed can win its fight against inflation and avoid a recession, what economists call a "soft landing." The latest consumer confidence report raises hopes for that outcome in 2023, Horneman says.

(More stock market stories.)