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Reuters
By Medha Singh
November 21 (Reuters) – US stocks recovered from a brutal two-day sell-off on Wednesday, as solid Foot Locker profits and gains in tech stocks boost investor sentiment before Thanksgiving holiday .
Foot Locker Inc. shares jumped 15.4% after quarterly sales of the shoe retailer's stores surpassed expectations and boosted other sporting goods retailers. Sales of Dick's Sporting Goods and Hibbett Sports grew by about 3%.
Gap Inc. rose 3.5%, reversing its previous losses after a number of Wall Street brokerages said the company's planned closure of underperforming stores could eliminate significant losses.
Foot Locker and Gap both helped boost the S & P Consumer Discretion Index, which was the largest gain among the top 11 S & P indices.
On Wednesday, the FAANG Group (Facebook Inc., Apple Inc., Amazon.com Inc., Netflix Inc. and Alphabet Inc.) experienced a 0.2% to 3% decline in technology pressure.
Autodesk Inc. surged 9.3% after software company reports third quarter results, ahead of analysts' estimates, and announces $ 875 million contract to purchase cloud software company PlanGrid.
Autodesk was the largest gain in the S & P technology sector, up 0.9% after three days of decline.
"The stock markets have rebounded after two days of sharp decline, which is probably a reaction to the bidding war," said Emily Roland, head of financial market research at John Hancock Investments.
An MNI report that the Fed could suspend its rate hike cycle in the spring could also support the markets, Roland said.
"Any sign that the Fed is more accommodative than what investors expect is going to be positive for risky assets."
At 10:59, the Dow Jones Industrial Average was up 107.36 points, or 0.44%, to 24,573.00, the S & P 500 up 17.74 points, or 0.67%, to 2 659.63 and Nasdaq Composite up 79.74 points, or 1.15%. at 6,988.56.
The S & P Energy Index rose 1.2% as oil prices rebounded after falling 6% the day before.
Concerns over slowing global growth and corporate earnings surge have dampened risk appetite in recent months, casting doubt on the longevity of the upward trend in equity markets over the past decade.
The Nasdaq closed Tuesday at its lowest level in more than seven months, while the S & P 500 and Dow Jones erased all their earnings for the year.
The latest economic data showed that new orders for key capital goods manufactured in the United States remained unchanged in October and shipments rebounded slightly, which could dampen expectations of accelerating capital spending in the United States. equipment at the beginning of the fourth quarter.
"This is a sign that the economy is adjusting to higher rates here." The pace of economic growth is slowing, but the US economy is by no means in free fall, Roland Roland said.
Increasing issues outnumbered declining ones by a ratio of 4.25 to 1 on the NYSE and a ratio of 3.39 to 1 on the Nasdaq.
The S & P index recorded four new highs over 52 weeks and two new lows, while the Nasdaq recorded seven new highs and 48 new lows.
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