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US Market rebounds on upbeat earnings

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Capital Market
Last Updated : Nov 23 2022 | 9:50 AM IST
The US stock market finished session sharply higher on Tuesday, 22 November 2022, as risk sentiments underpinned on earnings optimism after better-than-expected earnings results from consumer electronics retailer Best Buy and apparel retailer Abercrombie & Fitch.

Overall trading activity was somewhat subdued amid concerns about economic fallout of stricter COVID-19 curbs in China, and ahead of the US market Thanksgiving holiday on Thursday and the Federal Reserve's minutes of policy meeting due in this holiday-shortened week.

At the close of trade, the Dow Jones Industrial Average index surged 397.82 points, or 1.18%, to 34,098.10 The S&P500 index was up 53.64 points, or 1.36%, to 4,003.58 The tech-heavy Nasdaq Composite Index increased 149.90 points, or 1.36%, to 11,174.41.

Shares of Best Buy soared after the company reported better than expected third quarter results and forecast a smaller drop in annual sales than it had previously estimated, saying it was confident that a ramp up in deals and discounts will bring in more inflation-weary customers during the holiday season. Best Buy expects full-year comparable sales to fall about 10% for the year ending in January, compared with a previous forecast of a decrease of about 11%.

Shares of Apparel retailer Abercrombie & Fitch also moved up after reporting an unexpected third quarter profit. Abercrombie projects a net sales decline of 2 to 4% in the fourth quarter from last year's $1.2 billion as well as a 2 to 3% decline for the full-year 2022 from last year's $3.7 billion, compared to the prior forecast for a mid-single-digits decline.

On the other hand, shares of Zoom came under pressure after the video conferencing platform reported better than expected third quarter results but provided disappointing guidance.

Among Indian ADR, INFOSYS was up 0.86% at $19.37, HDFC Bank added 0.83% to $68, WNS Holdings added 1.4% to $85.74, Tata Motors gained 1.6% to $25.94, ICICI Bank added 0.4% to $22.86, and Dr Reddy's Labs added 0.2% to $54.19. Azure Power Global shed 0.75% to $5.27. Wipro was steady at $4.83.

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In overseas trading, Asia-Pacific stock markets traded in mixed fashion on Tuesday, on worries about the impact of surging COVID-19 cases in China. Japan's Nikkei225 index advanced 170.95 points, or 0.61%, to 28,115.74. Australia's S&P/ASX200 index was up 42.04 points, or 0.59%, to 7,181.30. China's Shanghai Composite Index edged up 0.13%, or 3.90 points, to 3,088.94. Hong Kong's Hang Seng Index stumbled 231.50 points, or 1.31%, to 17,424.41.

The major European markets all moved to the upside on the day. The U.K.'s FTSE 100 Index jumped by 1%, the French CAC 40 Index and the German DAX Index and the French CAC 40 Index rose by 0.4% and 0.3%, respectively.

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First Published: Nov 23 2022 | 9:24 AM IST

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