Major Wall Street stock indices were expected to open higher on Wednesday as Nike cheered markets with its better-than-expected results as investors waited for more economic data for hints about the path of future rate hikes.
Nike Inc rose 11.7% in premarket trading after reporting its best quarterly sales growth in all but one quarter, beating earnings expectations on strong demand from North American buyers during the holiday season.
Peers Lululemon Athletica Inc, Under Armor Inc and Vans sneakermaker VF Corp were up between 2.4% and 4.6%.
FedEx Corp., which triggered a market sell-off in September by cutting financial forecasts, rose 5.1%, thanks to the delivery company’s plans to cut another $1 billion in costs.
“Most people think we’re headed for a recession, but if Nike and FedEx earnings are strong, that could suddenly pave the way for higher (stock) prices next year,” said Adam Sarhan, CEO of 50 Park. Investments, New York.
“Underlying conditions remain very weak and it looks like this could only be a small seasonal uptick until the end of the year.”
Wall Street’s major indices closed slightly higher on Tuesday after early losses as government bond yields rose following the Bank of Japan’s surprise monetary policy adjustment.
Recession fears from the US Federal Reserve’s prolonged rate hikes have weighed heavily on equities since last week’s policy meeting, despite signs of easing inflation.
However, the S&P 500 benchmark and the Dow Jones Industrial Average were on track for their first quarterly gains this year, rising 6.6% and 14.4% respectively on positive gains, easing price pressures and hopes that the Federal Reserve its growth will slow down. rate increases.
December’s consumer confidence survey, expected at 10 a.m. ET, is expected to show a marginal improvement in business conditions to 101.0 from 100.2 a month ago, while existing home sales in November are expected to increase by will drop 5.4%, lower than the 5.9% drop a month ago.
Other core inflation and labor market data expected later this week are likely to shape the future course of the Fed’s rate hikes.
At 8:09 a.m. ET, Dow e-minis were up 305 points, or 0.92%, S&P 500 e-minis were up 27.5 points, or 0.71%, and Nasdaq 100 e-minis were up 57.75 points, or 0. Up 52%.
Tesla Inc posted some early gains, most recently rising 1.9% following a report that the electric vehicle maker plans to cut jobs and freeze hiring.
Shares of the company were previously boosted by Elon Musk’s plans to step down as CEO of Twitter once he finds a replacement.
Market volumes are expected to fall this week ahead of the Christmas and New Year holidays with low participation.
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