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Market Update

Wall Street and European Markets Extend Rally, Brent Crude Struggles


Author: Nichole Harper
ticker.com
Last Update: 11:14 AM ET December 23 2015

11:45 AM New York City, New York Wall Street indexes extended gains for the third day in a row after crude rebounded from an 11-year low and personal income increased and durable goods orders were unchanged. European markets closed higher on bargain hunting.

Market indexes on Wall Street rallied for the third day in a row led by a rebound in energy stocks and rising personal income highlighted bright side of the economy.

Durable goods orders in November unchanged at $238.8 billion following two consecutive monthly increases, followed by 2.9% increase in October.

Orders excluding transportation rose 0.4% and defense dropped 1.5%, the Department of Commerce reported.

Separately, the department said personal income in November increased 0.3% and disposable personal income rose 0.3%. Personal consumption expenditure grew 0.3% in the month.

In October personal income rose 0.4%, DPI increased 0.4% and PCE gained less than 0.1% on revised estimate.

In a separate report the same department said seasonally adjusted new home sales in November jumped 4.3% to 490,000 from the revised October rate of 470,000 and soared 9.1% from a year ago month to 449,000.

The median sale price of new homes sold in the month was $305,000 and average price was $374,900.

On Wall Street, Tollbooth Strategy Index gained 35.10 or 0.3% to 10,803.96.

S&P 500 index increased 18.21 or 0.9% to 2,056.93 and the Nasdaq Composite Index rose 32.56 or 0.7% to 5,033.47.

Crude oil in New York jumped $1.18 to $37.32 a barrel and gold fell $2.78 to $1,069.65 an ounce.

U.S. Movers

Bed Bath & Beyond Inc (BBBY) plunged 5.5% or $2.83 o $48.49 after the home furnishings retailer lowered net sales forecast for the third-quarter to edged up 0.3% from a year ago to $3 billion while comparable sales to decrease by 0.4%.

The home furnishings retailer also lowered its diluted earnings per share forecast in the range of $1.07 to $1.10 compared to earlier estimated range of $1.14 to $1.21 per share.

Nike Inc (NKE) jumped 2.8% or $3.69 to $135.54 after the athletic footwear, apparel, equipment maker reported revenues in the second-quarter ending in November jumped 4% from a year ago to $7.69 billion.

Net income in the quarter surged 20% to $785 million or 90 cents per diluted share compared to $655 million or 74 cents per share from the same quarter last year.

Nike said revenues in China soared 24% while revenues in North American jumped 9.4%.

Paychex, Inc (PAYX) rose 22 cents to $52.93 after the outsourcing services provider said revenues in the second-quarter ending in November soared 7% from a year ago to $722.4 million.

Net income in the quarter jumped 9% to $189.2 million or 52 cents per diluted share compared to $173 million or 47 cents per share from the same quarter last year.

The company said revenue in payroll service segment rose 4% to $427.4 million and revenue in human resource services business increased 11% to $283.9 million

Paychex forecasted total service revenue for the year to jump between 7% and 8% and net income to increase in the range of 8% to 9%.

European Markets

European stocks advanced on Wednesday following a rebound in commodity stocks and ahead of quieter holiday trading.

Bargain hunters snapped up oil and mining companies trading at near three-year lows as copper, oil, iron ore and coal decline more than 40% in the year and extend losses for the third year in a row.

European markets are scheduled to close early on Thursday and will be shut on Friday and in addition the U.K. markets will remain closed on Monday for Boxing Day.

Glencore surged 6.3%, Anglo American soared 8.4% and the steel producer ArcelorMittal advanced 2.8%

In energy stocks, Tullow Oil shot up 7.5% and Repsol added 6.2%.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc