- Nike hits record high after strong earnings forecast
- FedEx slips after missing 2022 profit forecast
- Indices: Dow up 0.63%, S&P adds 0.26%, Nasdaq down 0.03%
June 25 (Reuters) – The S&P 500 index hit an all-time high on Friday, boosted by gains from Nike and bank stocks, as weaker-than-expected inflation data eased concerns over a sudden cut in measures stimulus from the Federal Reserve.
Nike Inc (NKE.N) jumped 14.6% to an all-time high after the sneaker maker forecast sales for the fiscal year ahead of Wall Street estimates, helping the Dow Jones rise 0, 63%. Read more
Inflation has been at the center of investor concerns, with the latest personal consumption expenditure (PCE) data showing that a measure of core inflation rose less than expected in May. Core PCE rose 3.4% year-on-year, above the Fed’s flexible 2% target. Read more
The data “supported the Fed’s argument that inflation is transient and will help allay fears of runaway inflation,” said Anu Gaggar, senior global investment analyst at the Commonwealth Financial Network.
The S&P 500 and the Nasdaq were on course for their best 11 weekly jump after a deal on a bipartisan infrastructure deal and insurance from Fed Chairman Jerome Powell calmed nerves after the hawkish surprise of the central bank last week.
The S&P Banks Index (.SPXBK) jumped 1.3% after the Fed announced that the big banks allowed the latest stress test and will no longer face pandemic-era restrictions on the market. repurchase of shares and payment of dividends. Read more
Eight of the top 11 S&P sectors rose in early trading, with financials (.SPNY) and materials (.SLPRCM) among the biggest gainers.
Consumer Discretionary (.SPLRCD), home to some of the mega-cap tech names like Tesla Inc (TSLA.O) and Nike, was the top performer.
At 10:06 am ET, the Dow Jones Industrial Average (.DJI) was up 216.46 points, or 0.63%, to 34,413.28, the S&P 500 (.SPX) was up 10.91 points, or 0.26%, to 4,277.40, and the Nasdaq Composite (.IXIC) lost 3.97 points, or 0.03%, to 14,365.74.
FedEx Corp (FDX.N) fell 4.9% after the U.S. delivery company missed its 2022 profit forecast due to hiring difficulties. Rival United Parcel Service Inc (UPS.N) also fell 0.6%. Read more
CarMax Inc (KMX.N) jumped 5.8% after the used car retailer topped Wall Street estimates for quarterly revenue, helped by strong demand as more people opted for personal vehicles rather than public transport due to the COVID-19 pandemic.
Netflix Inc (NFLX.O) rose 2.1% after Credit Suisse upgraded the streaming video giant’s shares to “outperform” them.
Investors are also gearing up for possibly the biggest trading event of the year, as FTSE Russell rebuilds its indices that could reflect a wild trading year marked by the pandemic and a “meme” stock market craze.
Rising issues outnumbered declines by a 1.83-to-1 ratio on the NYSE and by a 1.28-to-1 ratio on the Nasdaq.
The S&P Index recorded 15 new 52-week highs and no new lows, while the Nasdaq recorded 66 new highs and no new lows.
Report by Devik Jain and Medha Singh in Bengaluru; Editing by Maju Samuel
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