Spencer Platt/Getty Images
US stocks surged on Wednesday after data showed a resilient consumer heading into 2023.Consumer confidence rose to its highest level since April, according to data from the Conference Board.Nike soared 13% after it said footwear and apparel sales rose 25% and 4% in the quarter, respectively.
US stocks jumped more than 1% on Wednesday after sentiment data showed consumer confidence is at its highest level since April, according to the Conference Board.
Earnings results from Nike also showed that consumers remain relatively resilient to higher interest rates and elevated inflation.
Nike rallied 14% in Wednesday trades after the company said footwear and apparel sales rose 25% and 4% in the quarter, respectively. Sales in North America were up 30%, and perhaps more encouragingly, the company raised its revenue-growth outlook.
Here’s where US indexes stood at the 4:00 p.m. ET close on Wednesday:
S&P 500: 3,878.44, up 1.49% Dow Jones Industrial Average: 33,376.48, up 1.6% (526.74 points)Nasdaq Composite: 10,709.37, up 1.54%
The stock market is approaching its favorable year-end “Santa Claus rally” trading window, which starts this Friday and ends after the first two trading days of 2023. According to Carson Group’s Ryan Detrick, the upcoming period is one of the strongest for the stock market on a seasonal basis, with average gains of 1.33% and a positive return 79% of the time.
Here’s what else happened today:
Tesla CEO Elon Musk pushed back against investor concerns that his management of Twitter is hurting the stock price of the electric vehicle company.Tesla’s recent stock dive now makes it worth less than oil giant Exxon Mobil, and since being added to the S&P 500 two years ago, Tesla stock has generated negative returns.Bill Gross said that he’s worried that there could be a recession as well as market crises in 2023 if interest rates keep rising.Economist Mohamed El-Erian said the Fed has blown it on inflation, and that leaves central bankers with no choice but to inflict damage on the economy.Existing home sales fell nearly 8% in November for the 10th straight month. Pantheon Macro warned that home prices will decline 20% over the next year as housing supply rises.
In commodities, bonds and crypto:
West Texas Intermediate crude oil rose 2.87% to $78.42 per barrel. Brent crude, oil’s international benchmark, jumped 2.94% to $82.34.Gold fell 0.08% to $1,823.90 per ounce.The yield on the 10-year Treasury was flat at 3.68%.Bitcoin fell 0.11% to $16,777, while ether jumped 0.11% to $1,208.