US Close: Stocks bounce back, Biden briefing, Nike and Micron crush earnings

US stocks rebounded on hopes that Biden’s $2 trillion economic agenda could still get done in January.  Investors want to be optimistic leading up to the holidays and lawmakers on Capitol Hill will not want to be painted the villain, so all the rhetoric will likely be upbeat for the rest of the week. Before President Biden’s speech, it was reported that 500 million tests could be sent for free to Americans that want them. To assist healthcare capacity concerns, 1,000 military personnel will try to help the labor shortage in hospitals. 

President Biden’s afternoon speech provided another plea for Americans to get vaccinated and eased fears that the US won’t go back to lockdowns. Biden addressed the COVID-19 response and the economic hit that would happen if Build Back Better does not get done. Biden concluded his presser by stating, “Senator Manchin and I will get something done.” Biden’s comments just confirm Wall Street’s upbeat outlook for the US economy and stock market.

Nike Nike shares rallied after producing strong results that showed US sales were able to overcome the shortfall with sales in China.  Nike is navigating fairly well with supply chain issues and that should only get better as Vietnam reopens.  Nike’s 20 cent earnings beat, solid guidance, and optimism supply chain bottlenecks will start to ease at the end of next quarter should keep shares heading higher. 

Micron

Micron gave a strong outlook that has Wall Street analysts scrambling to upgrade their outlooks and raise their price targets. Strong demand for chips was ahead of what Wall Street was expecting and that should keep this stock supported. 

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Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya