US Stocks extend gain on upbeat consumer confidence data

The US stock market finished higher for second straight session on Wednesday, 21 December 2022, as investors continued bargain hunting, with shares in energy, tech, financials, and industrials being leading rally. Adding to the positive sentiment was the Conference Board report showing a significant improvement in U.S. consumer confidence in the month of December. Meanwhile, better than expected earnings news from Nike also generated buying interest.

At the close of trade, the Dow Jones Industrial Average index advanced 526.74 points, or 1.6%, to 33,376.48. The S&P500 index grew by 56.82 points, or 1.49%, to 3,878.44. The tech-heavy Nasdaq Composite Index added 162.26 points, or 1.54%, to 10,709.37.

All 10 sectors ended higher along with the S&P500 Index. Energy was the best performing sector, gaining 1.89%, followed by Industrials (up 1.85%), financials (up 1.7%), information technology (up 1.68%), and consumer discretionary (up 1.58%) sectors.

Shares of Nike soared by 12.2% after the athletic footwear and apparel giant reported better than expected fiscal second quarter results and provided upbeat full-year revenue guidance. Profits for the quarter ended at November 2022 came in at $1.3 billion, the same as in the year-ago period while revenues jumped 17% to $13.3 billion.

Delivery giant FedEx (FDX) also showed a strong move to the upside after reporting fiscal second quarter earnings that exceeded market estimates. FedEx second-quarter adjusted profit fell to $815 million, or $3.18 per share, from $1.3 billion, or $4.83 per share, a year earlier. The company forecast 2023 earnings per share of $13 to $14

ECONOMIC NEWS: The Conference Board released a report showing its consumer confidence index spiked to 108.3 in December from an upwardly revised 101.4 in November.

Meanwhile, the National Association of Realtors released a separate report showing existing home sales dove by 7.7% to an annual rate of 4.09 million in November after plunging by 5.9% to a rate of 4.43 million in October. Existing home sales decreased by 35.4% compared to the same month a year ago.

Among Indian ADR, Wipro rose 0.65% to $4.68, Dr Reddy's labs added 1.15% to $53.68 INFOSYS was up 0.9% at $18.22. WNS Holdings rose 3.6% to $79.56, and Azure Power Global added 1.4% to $4.93. HDFC Bank fell 1% to $69.31, ICICI Bank fell 1% to $21.97, and Tata Motors sank 3% at $24.02.

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