Wall St jumps after sharp sell-off as Nike, Micron take the lead

A trader wearing a mask works on the trading floor at the New York Stock Exchange (NYSE) in New York City
A trader wearing a face mask works on the trading floor at the New York Stock Exchange (NYSE) as the Omicron coronavirus variant continues to spread in Manhattan, New York City, U.S., December 20, 2021. REUTERS / Andrew Kelly

December 21, 2021

By Shreyashi Sanyal and Bansari Mayur Kamdar

(Reuters) – Wall Street’s main indexes rose on Tuesday, boosted by Nike and Micron after strong earnings, with beaten tech shares rebounding from the day’s sharp sell-off. yesterday.

A rapidly spreading Omicron variant of the coronavirus has rattled stock markets around the world, triggering major swings in the last month of the year on concerns about the strain’s impact on the economic recovery. Global.

Nike Inc rose 6.5%, leading the gain among Dow components. It beat quarterly estimates for profit and revenue, and sounded confident about the possibility of supply chain problems in the next financial year.

Micron Technology Inc led the gain among chipmakers, with a 9.9% gain, after a strong second-quarter earnings forecast and topping Wall Street’s expectations for quarterly profit and revenue.

Their positive updates helped to assuage some concerns about broader supply chain constraints in a high-inflation environment that has become a cause for concern for central banks around the world. bridge.

Ten of the 11 major S&P 500 sectors were up in early trading, while the Philadelphia SE Semiconductor index was up 1.6 percent.

“We were oversold yesterday and we are recovering a bit today. This market is like a dead cat bouncing back in comparison to the new bull market that will rage in 2022. There is so much to worry about,” said Dennis Dick, an exclusive trader at Bright Trading LLC in Las Vegas. know.

Mega-cap growth companies, including Tesla Inc, Microsoft Corp, Apple Inc, Inc and Alphabet Inc, jumped from 0.2% to 1.3% after being beaten on Monday.

Investors have taken a more defensive stance this month, with sectors such as consumer, real estate and utilities among the top gainers in December. Most defensive moves have failed. any results on Tuesday.

“For the next year, one thing to consider is the January effect – the buying of beaten-up names. What you see right now is the tax sale of all these growth names… That fades after the new year and sometimes beat the dogs of 2021 that can truly become leaders into the year. 2022,” said Dick.

At 9:46 a.m. ET, the Dow Jones Industrial Average was up 295.40 points, or 0.85%, to 35,227.56, the S&P 500 was up 30.23 points, or 0.66%. , at 4,598.25, and the Nasdaq Composite added 105.13 points, or 0.70%, at 15,086.08.

Travel-related shares, which fell in the previous session on the outlook for tighter restrictions, rose on Tuesday. Delta Air Lines Inc added 3.2% to lead the gain for US airlines, while Wynn Resorts added 2.7%.

General Mills Inc slipped 4.3% after analysts missed estimates for quarterly profit.

More stocks rose than fell by a ratio of 6.01 to 1 on the NYSE and 3.28 to 1 on the Nasdaq. The S&P index recorded six new 52-week highs and no new lows, while the Nasdaq recorded 14 new highs and 31 new lows.

(Reporting by Shreyashi Sanyal and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D’Silva and Uttaresh.V) Wall St jumps after sharp sell-off as Nike, Micron take the lead

Bobby Allyn

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