Wall Street: Oil Companies and Supporting Performance

(CercleFinance.com) – On Wednesday, Wall Street extended its rally that began the previous day under the combined effect of solid corporate results and good performance by oil stocks amid a recovery in crude oil prices.

By late morning, the Dow Jones gained more than 1.6% to 33,379.9 points, while the Nasdaq Composite gave itself up 1.5% to 10,710.5 points.

US stock markets have had a relatively weak end to the year so far, with the S&P 500 down nearly 5% since the start of December.

But investors have seen oil rally over the past ten days, which some observers have begun to interpret as a signal of growing optimism about the economy and a return to risk appetite.

Oil prices confirmed their recovery following the announcement during the morning of a weekly drop in crude inventories.

Data released by the US Energy Information Agency (EIA) shows crude oil inventories fell by 5.9 million barrels last week.

On the NYMEX, a barrel of U.S. light crude oil (WTI) rose 2% to nearly $77.8 after those figures.

In the wake of oil prices, energy stocks rose 1.8% to once again deliver the best sector performance in the S&P 500.

On the Dow, Chevron gains almost 1.5%, while the title ExxonMobil gains its side 1.7%.

Among the companies that released their results, Nike stands out in particular with gains exceeding 13%, the best performance of the Dow, after numbers that were much better than expected.

FedEx also saw its title jump 4.5% after beating consensus forecasts for the latest quarter and expressing its intention to highlight its cost reductions.

The lackluster statistics revealed during the morning had only a limited impact on the trend.

The announcement of a 7.7% drop in pre-owned sales in November, their 10th straight decline, confirmed weakness in the US housing market.

Conversely, the Conference Board’s consumer confidence index rose sharply to 108.3 this month from 101.4 in November, well above the consensus target of 101.

Lynn Franco, director of economic indicators at the Conference Board, attributes this recovery to the drop in household inflation expectations, which she says have returned to their lowest levels since September 2021 due to the recent drop in gasoline prices.

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