Supported by well-received quarterly updates from a few well-known companies, stocks ended the session in the green Wednesday, with the S&P 500 up 1.5%. The rise followed a partisan surge the day before, as Wall Street sought to regain its footing following the financial crisis. recent Federal Reserve-inspired decline.
Income from Nike (NYSE:NKE) helped fuel the protest. Shares posted a double-digit percentage gain after announcing results that beat Street.
caterpillar (CAT) is another big name participating in Wednesday’s rally. The stock builds on the upward momentum it has experienced over the past two months, allowing the stock to set a new 52-week high.
On the negative side, the earnings news sent Calavo Growers stock price (CVGW). Meanwhile, Red Robin Gourmet (RRGB) retreated due to an analyst downgrade, falling to a new 52-week low.
Prominent bullies
Better-than-expected quarterly results spurred a wave of Nike stock purchases (NKE), rose 12% after the sportswear and footwear maker was able to manage narrow margins in the face of inflationary pressures.
The company reported earnings that prediction beat, helped by a 17% increase in revenue from last year to reach $13.3 billion. The top figure exceeding consensus is $740 million.
NKE ended Wednesday’s trading at $115.78, up $12.58 during the session. The rally pushed the stock above its recent trading range and hit its highest close since August.
The stock has seen a recent upswing, bouncing off a 52-week low of $82.22 reached at the end of September. However, with heavy losses recorded early in year, NKE remains about 30% lower for the whole of 2022.
Prominent denizen
Calavo Growers (CVGW) suffered a wave of selling pressure after posting poor quarterly results, prompting the avocado and fruit distributor to post double-digit declines in revenue. Shares fell 14% on the news.
The firm miss expectations in Q4 on both the top and bottom lines. Revenue fell 11% year-over-year to less than $244 million. The company reported a “slower-than-expected recovery” in what it called the “Evolved” segment following “challenging market conditions that occurred late in the third quarter.”
According to the quarterly results, CVGW fell 4.87 points to $29. During the session, the stock also hit a 52-week intraday low of $27.29.
The stock has seen tough trading in 2022, reaching a 52-week high of $45.50 at one point. With the most recent halving, CVGW is now down about 32% since the end of 2021.
Remarkable new high
Responding to the overall growth of the market, Caterpillar (CAT) extended the recent mid-term rally to hit new 52-week highs. This comes as the construction equipment maker’s shares rose nearly 3% on Wednesday, up nearly 1% on Tuesday.
CAT edged higher for most of Wednesday’s trading session, hitting a 52-week intraday high of $241.91. Shares eased slightly before closing, eventually ending at $241.73, up $6.55 on the day.
Longer-term, CAT has been moving higher since late September, when the stock hit a 52-week intraday low of $160.60. Shares have rallied more than 50% since hitting that low.
The stock has seen tough trading in 2022. Thanks to a spike over the past few months, the stock is now up about 17% on the year.
Notable new lows
One cautious analyst comment sent Red Robin Gourmet (RRGB) plummeted, pushing the stock to a new 52-week low. Shares of the casual-dining burger chain are down 8% on the day.
Jeffries has lowered his rating on the stock to Hold from Buy. This prompted RRGB to drop 53 cents during the session to hit $6.10. The stock also hit a 52-week intraday low of $5.63.
Wednesday’s slide added to a long-term downtrend. The stock has now fallen about 27% over the past month, below support established in October, when the stock set a 52-week low earlier.
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