Nike, bank stocks push S&P 500 to new highs as inflation scares subside – .

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Nike, bank stocks push S&P 500 to new highs as inflation scares subside – .


Dividers are visible inside a trading post on the trading floor as preparations are made for the return to the New York Stock Exchange (NYSE) on May 22, 2020. REUTERS / Brendan McDermid

  • Nike flies to record after strong earnings forecast
  • FedEx slips after missing 2022 profit forecast
  • Virgin Galactic takes off on space tourism approval
  • Indices en hausse : Dow 0,69%, S&P 0,28%, Nasdaq 0,02%

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 13.9% 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, 69%. Read more

Inflation has been the backbone of markets in recent sessions, 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 as expected, above the Fed’s flexible 2% target. Read more

The data “gives people a breath of fresh air and inflation fears can be a bit overblown,” said Thomas Hayes, president of Great Hill Capital LLC in New York City.

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.

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.

“You had this difference of opinion among the members of the Fed, and what everyone seems to forget is that President Powell is driving the bus and he’s got the pedal to the metal,” Hayes said.

The S&P Banks Index (.SPXBK) jumped 1.2% 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

Nine of S&P’s top 11 sectors rose, with Financials (.SPNY), Materials (.SLPRCM) and Healthcare (.SPXHC) 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.

As of 11:25 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 235.96 points, or 0.69%, to 34,432.78, and was set for its best weekly performance since mid-March.

The S&P 500 (.SPX) was up 11.77 points, or 0.28%, to 4,278.26 and the Nasdaq Composite (.IXIC) was up 2.91 points, or 0.02%, at 14,372.62.

FedEx Corp (FDX.N) fell 4.5% after the U.S. delivery company missed its 2022 profit forecast due to hiring difficulties. Read more

CarMax Inc (KMX.N) jumped 6.3% after the used car retailer topped Wall Street estimates for quarterly earnings, helped by strong demand as more people opted for personal vehicles rather than public transport due to the COVID-19 pandemic. Read more

Billionaire Richard Branson’s spacecraft company Virgin Galactic (SPCE.N) jumped 34.8% after receiving approval from the U.S. aviation safety regulator to transport people into space. Read more

Rising issues outnumbered declines by a 1.67-to-1 ratio on the NYSE and by a 1.44-to-1 ratio on the Nasdaq.

The S&P Index recorded 19 new 52-week highs and no new lows, while the Nasdaq recorded 92 new highs and five new lows.

Report by Devik Jain and Medha Singh in Bengaluru; Editing by Maju Samuel

Our Standards: The Thomson Reuters Trust Principles.

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