The stock market fell on Wednesday after Russia downplayed hopes of progress in peace talks and stepped up attacks in Ukraine. Oil prices climbed back up to almost $108 a barrel.
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The S&P 500 fell 0.4%. If the losses continue, the S&P 500 would end a four-day winning streak. The Nasdaq Composite lost 0.6%. The Dow Jones Industrial Average fell 0.2%. The small cap Russell 2000 Index fell 0.6%.
Volume fell on the NYSE and Nasdaq compared to the same time Tuesday.
A Russian official dismissed talks of a breakthrough in peace talks with Ukraine. Russian forces continued shelling Kyiv today, even after a Russian official announced on Tuesday that military operations near the Ukrainian capital would be drastically reduced.
Ukrainian President Volodymyr Zelenskyy said today that Russia is sending new troops.
Overview of today’s US stock market | ||||
|---|---|---|---|---|
| index | symbol | price | loss of gain | % To change |
| Dow Jones | (0DJIA) | 35220.49 | -73.70 | -0.21 |
| S&P500 | (0S&P5) | 4609.83 | -21.77 | -0.47 |
| Nasdaq | (0NDQC) | 14531.68 | -87.96 | -0.60 |
| Russell 2000 | (IWM) | 210.35 | -1.36 | -0.64 |
| IBD 50 | (FFTY) | 40.05 | +0.04 | +0.10 |
Last updated: 12:00 PM ET 3/30/2022 | ||||
US crude rose 3.8% to $108 a barrel after briefly falling below $100 on Tuesday. The Energy Select SPDR ETF (XLE) is up 1%, leading all S&P sectors.
Big Oil was also up on Wednesday, led by Dutch companies sleeve (SHEL), which is up 4%. Shell’s American Depository Receipts are poised for a breakout from a flat base entry of 56.23. Exxon Mobile (XOM) and rafters (CVX) also won.
In another side effect of the Ukraine conflict, Germany’s economy minister said the country had taken the first step in a contingency plan aimed at protecting itself against a cut in Russian gas supplies. The first step is a formality and Russian supplies will continue for the time being, the minister said.
Yields continue to fall despite stock market losses
The 10-year Treasury yield fell again on Wednesday to 2.37%. The two-year Treasury yield rose to 2.35%. On Tuesday, the 10-year yield fell 8 basis points and briefly dipped below the two-year yield. An inverted yield curve is seen by many investors and economists as a harbinger of a recession.
Among the major US stock market moves Lululemon Athletica (LULU) climbed 10% to its highest price since early January after the sportswear company beat earnings expectations. But sales for the quarter ended January were slightly below expectations. Lululemon stock is recovering from a 43% plunge from November through mid-March.
Upscale furniture chain RH (RH) fell more than 12% on strong volume. The company beat earnings expectations, but its full-year sales guidance fell short.
Micron technology (MU) jumped to a 3.5% gain when the market opened but then retreated to flat trading and failed to regain the 50-day moving average. The memory chipmaker beat analysts’ estimates for its quarter ended February and issued a higher guidance for the current period. Micron forms a double bottom base.
BioNTech (BNTX) is up 5% after posting gains on a strong earnings report and upbeat full-year guidance. The company that is making a Covid-19 vaccine with partners Pfizer (PFE) also announced a $1.5 billion share repurchase.
Personnel and real estate shares are holding on to price gains
personnel service provider Robert Half (RHI) and ASGN (ASGM) are slightly below their buying ranges today but have held most of their gains from the previous day. Both RHI and ASGN had surpassed buy points yesterday after completing cup-with-handle patterns.
Also real estate companies Brookfield Wealth Management (BAM) and REIT Essex Property Trust (ESS) held in their buy zones after crossing their respective buy points outside of cup-and-handle patterns yesterday.
The Innovator IBD 50 ETF (FFTY) is up 0.2%. NVIDIA (NVDA) fell 2% in strong trade but remains higher for the week.
Energy, mining and agricultural stocks rallied in the IBD 50. MP materials (MP) gained 5.5% and was back in profit-taking territory. CF industries (CF) rose 1.9%.
Ahead of Friday’s jobs report, the ADP estimate of job growth showed an increase of 455k jobs in March versus a revised 486k in February. The March figure was above the consensus forecast of 438,000 new jobs. The ADP report is a precursor to the Labor Department’s report, which is expected to show a 438,000 rise in private payrolls. The stock market will be watching this headline on Friday morning.
Also this morning came the final GDP revision for the fourth quarter, up 6.9%. That’s slightly less than the 7% in the previous estimate.
Follow Michael Molinski on Twitter @IMmolinski
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