Bolstered well-received quarterly updates from a couple of high-profile companies, stocks ended solidly in the green on Wednesday, with the S&P 500 rising 1.5%. The advance followed factional gains the day before, as Wall Street looks to regain its footing after the recent Federal Reserve-inspired decline.
Earnings from Nike (NYSE:NKE) helped drive the rally. The stock posted a double-digit percentage gain following the release of Street-beating results.
Caterpillar (CAT) was another big name that participated in Wednesday’s upswing. Shares built on the upward momentum it has experienced over the past two months, allowing the stock to set a new 52-week high.
Looking to the downside, earnings news prompted a sharp drop in Calavo Growers (CVGW). Meanwhile, Red Robin Gourmet (RRGB) retreated on an analyst’s downgrade, falling to a new 52-week low.
Standout Gainer
Better-than-expected quarterly results prompted a wave of buying in shares of Nike (NKE), which surged 12% after the athletic shoe and apparel maker was able to control margin contraction in the face of inflationary pressures.
The company reported earnings that beat projections, helped by revenue that climbed 17% from last year to reach $13.3B. The top-line figure exceeded consensus by $740M.
NKE finished Wednesday’s trading at $115.78, a rally of $12.58 on the session. The advance took the stock above a recent trading range and to its highest close since August.
Shares have seen a recent upswing, coming off a 52-week low of $82.22 reached in late September. Still, with steep losses recorded early in the year, NKE remains about 30% lower for 2022 as a whole.
Standout Decliner
Calavo Growers (CVGW) suffered a wave of selling pressure following the release of weak quarterly results, which saw the avocado and fruit distributor post a double-digit percentage decline in its revenue. Shares plunged 14% on the news.
The firm missed expectations in Q4 on both the top and bottom lines. Revenue retreated 11% from last year to reach a level below $244M. The company reported “slower than anticipated recovery” in what it refers to as its “Grown” segment after “the challenging market conditions that occurred late in the third quarter.”
Following the quarterly results, CVGW dropped $4.87 points to reach $29. During the session, the stock also reached an intraday 52-week low of $27.29.
Shares have seen choppy trading in 2022, at one point reaching a 52-week high of $45.50. With the latest leg down, CVGW has now fallen about 32% since the end of 2021.
Notable New High
Riding a general upswing in the market, Caterpillar (CAT) extended a recent medium-term rally to reach a new 52-week high. This came as shares of the maker of construction equipment posted an almost 3% advance on Wednesday, building on Tuesday’s nearly 1% advance.
CAT drifted higher through much of Wednesday’s session, reaching an intraday 52-week high of $241.91. The stock moderated slightly before the close, eventually ending at $241.73, a gain of $6.55 on the day.
Longer-term, CAT has been pushing higher since late September, when the stock reached an intraday 52-week low of $160.60. Shares have surged more than 50% since hitting that low.
The stock has seen choppy trading in 2022. Thanks to the surge over the past couple months, the stock is now up about 17% for the year.
Notable New Low
A cautious analyst comment sent Red Robin Gourmet (RRGB) sharply lower, pushing the stock to a new 52-week low. Shares of the casual dining burger chain dropped 8% on the day.
Jeffries cut its rating on the stock to Hold from Buy. This spurred RRGB to drop 53 cents on the session to reach $6.10. Shares also touched an intraday 52-week low of $5.63.
Wednesday’s slide added to a longer-term downtrend. The stock has now fallen about 27% in the past month, taking it below support established in October, when the stock set its previous 52-week low.
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