Dow surges 500 points led by Nike on hope earnings will be better than feared

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Investors digested earnings from Nike and FedEx that sent the shares of both companies higher before the bell.

Stocks rose for a second day Wednesday after earnings reports from two major bellwethers raised hopes that corporate earnings may be better than feared even with a potential looming recession.

"We got sort of oversold and I think the market was looking for an excuse to rally, and the Nike and FedEx number provided that," said Sam Stovall, chief investment strategist at CFRA Research. "I really question, however, if this is something that's going to be long-lasting.". The sports apparel company showed progress in its attempt to clear through inventory, posting a decline over the previous quarter.

Wednesday's moves followed a day of slight gains for stocks. The major indexes snapped a four-day losing streak, putting a little wind back into hopes for an end-of-year rally.9 Min AgoShares of Nike are higher by almost 14 points Wednesday, meaning it's adding almost 90 points to the Dow Jones Industrial Average all by itself. That's also nearly 20% of the average's entire gain.

Arch Capital Group also traded near all-time high levels last seen when it began trading on the Nasdaq in 2000.

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biggest sporting event in history mightve had something to contribute. doubt its contagious

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