Mortgage demand jumps 6%
Mortgage applications to refinance rose 6% last week as interest rates dropped to their lowest level since September, according to the Mortgage Bankers Association’s seasonally adjusted index.
Volume, meanwhile, was 85% lower than the same week last year.
At the same time, applications to buy a home declined 0.1% for the week and were 36% lower than during the same period a year ago.
— Samantha Subin
Analysts are getting more confident on Nike
Wall Street analysts are growing more confident on Nike after the apparel giant’s latest quarterly results release.
UBS’ analyst Jay Sole called Nike his top pick for 2023, saying that the company’s growth potential is underestimated. He reiterated a buy rating on the stock.
“Nike’s investments in product innovation, supply chain speed, and digital are unlocking what is likely a multi-year period of above average growth. Plus, we believe Nike has the brand strength, strategy, skills, and resources to outperform peers through a recession ,” Sole wrote.
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—Sarah Min
European markets climb as investor sentiment brightens
European markets advanced on Wednesday, reversing a negative trend seen in the previous trading session.
The Stoxx 600 index was up 0.6% in early trade with almost all sectors and major bourses in the green. Retail stocks led gains, up 2.2%, followed by financial services, which climbed 1.2%.
Don’t count out a year-end rally yet, says Carson Group’s Detrick
Many investors’ hopes for an end-of-year rally were at least briefly dashed ahead of Tuesday’s rally, but there’s still time, according to Carson Group’s chief market strategist Ryan Detrick.
One point about so-called “Santa Claus rallies” that’s been misunderstood is that they take place in the last five days of the year and the first two days of the new year, he pointed out on CNBC’s “Closing Bell: Overtime” Tuesday.
The average return over those seven days is 1.33%, and finishes higher almost 80% of the time, he added.
“No seven days of the year are more likely to finish higher,” he said. “Anything could happen with this weakness we’ve had and the oversold sentiment we’ve had. We still believe there’s a chance that Santa could come to town and could come this Friday.”
— Tanaya Machel
Shares of Nike, FedEx jump in extended trading
Nike and FedEx were among the top movers after hours following their quarterly results.
Nike shares surged more than 12% after the athletic apparel and footwear maker easily topped earnings and revenue estimates for its most recent quarter. That gave a boost to other athleisure stocks. Under Armor gained more than 2% after hours, Skechers rose 2% and Lululemon added 1.75%.
Meanwhile, performance at FedEx was less impressive but investors cheered the package delivery giant’s “aggressive” cost-cutting measures. Earnings beat expectations, but fell from the same period last year. Revenue for the quarter missed estimates. FedEx shares rose almost 4% after hours.
— Tanaya Machel
Stock futures open higher
Stock futures opened higher on Tuesday evening, helped by Nike and FedEx earnings.
Dow Jones Industrial Average futures rose 110 points, or 0.33%. S&P 500 futures added 0.23%, and Nasdaq 100 futures climbed 0.31%.
— Tanaya Machel
