U.S. stocks enjoyed an afternoon rally, with the Dow Jones index climbing over 150 points on Wednesday.
The Dow advanced 0.47% to 38,701.01, while the NASDAQ soared 0.89% to 15,748.69. The S&P 500 also joined the party, posting a gain of 0.82% to 4,994.75.
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Winners and Losers in the Market
Consumer discretionary shares were on the rise by 1.1% on Wednesday.
In contrast, energy shares experienced a 0.2% decline in trading on Wednesday.
Top News of the Day
The spotlight fell on Yum! Brands Inc YUM as they reported weaker-than-expected results for the fourth quarter on Wednesday.
The company’s fourth-quarter fiscal 2023 sales growth was a meager 1% year-on-year at $2.04 billion, falling short of the analyst consensus estimate of $2.11 billion. Adjusted EPS came in at $1.26, below the consensus of $1.40.
Stocks on the Rise
Shares of MicroCloud Hologram Inc. HOLO skyrocketed 497% to $8.95. The company revealed its intention to join the Communications Industry Association, aiming to foster information technology innovation.
Meanwhile, the stock of Glatfelter Corporation GLT surged 72% to $2.20 following the announcement of a definitive agreement to spin-off and merge the majority of its Health, Hygiene and Specialties segment with Glatfelter.
Aviat Networks, Inc. AVNW also saw its shares rise by 25% to reach $37.47 after the company’s second-quarter financial results surpassed expectations and the FY24 revenue guidance exceeded estimates.
Stocks on the Decline
In contrast, Triumph Group, Inc. TGI shares tumbled 18% to $13.46 after the company reported below-consensus third-quarter results and slashed the FY24 outlook.
Similarly, shares of The Container Store Group, Inc. TCS nosedived by 41% to $0.9998 following disappointing quarterly results.
Snap Inc. SNAP also felt the heat, dropping 35% to $11.30 after reporting mixed quarterly results.
Commodity Market
In commodity news, oil prices saw a 0.8% increase to $73.89 while gold prices remained relatively flat at $2,051.10.
Silver had a downward trend, trading 0.5% lower at $22.365, and copper took a hit, falling 1.2% to $3.7365.
European Market Movements
European shares experienced a downturn today. The eurozone’s STOXX 600 fell 0.23%, London’s FTSE 100 dropped 0.68%, while Spain’s IBEX 35 Index and the German DAX both fell by 1.15% and 0.65% respectively. The French CAC 40 and Italy’s FTSE MIB Index also witnessed declines of 0.36% and 0.45%.
France’s current account deficit shrank to EUR 0.7 billion in December versus a revised EUR 2.9 billion in the prior month, while the trade deficit increased to €6.83 billion in December from a €5.9 billion gap in the previous month.
On the flip side, the Halifax House Price Index rose by 2.5% year-over-year in January, while German industrial output declined by 1.6% month-over-month in December.
Markets in Asia Pacific
In Asia, markets closed with mixed sentiments on Wednesday. Japan’s Nikkei 225 slipped by 0.11%, Hong Kong’s Hang Seng Index dipped 0.34%, while China’s Shanghai Composite Index chalked up a gain of 1.44%. India’s S&P BSE Sensex saw a 0.06% decline.
China’s vehicle sales climbed by 47.9% year-over-year to 2.44 million units in January. China’s foreign exchange reserves fell to $3.219 trillion in January from $3.238 trillion in the prior month, with Hong Kong following suit, falling to $423.2 billion in January.
The index of leading economic indicators in Japan rose to 110.0 in December versus a revised reading of 108.1 in the previous month, while the index of coincident economic indicators also rose to 116.2 in December from a final reading of 114.6. On the other hand, reserve assets in Japan declined to $1.292 trillion in January from $1.295 trillion a month ago.
Economic Indicators
U.S. mortgage applications were up by 3.7% in the week ending Feb. 2.
The U.S. trade deficit came in at $62.2 billion in December versus a revised $61.9 billion gap in November.
Moreover, crude oil inventories in the U.S. witnessed a substantial increase by 5.521 million barrels in the week ending Feb. 2, marking the most significant surge since mid-November.
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