The Dow Jones Industrial Average fell amid rising fears a Russia invasion of Ukraine may be imminent. Roku (ROKU) cratered following its earnings report while Ford (F) motored higher on reports of a possible spinoff of its EV unit. General Electric (GE) took a tumble on a profit warning.
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Ukraine Invasion Fears Grow: This Spooks Investors
According to the U.S., the Russian buildup, estimated at 190,000 troops along the Ukrainian border, is the most significant since World War II ahead of a possible invasion.
The Russian parliament speaker Vyacheslav Volodin has said they should intervene to stop “genocide” in Ukraine. It comes after U.S. officials warned Russia could conduct a so-called false flag operation as an excuse to take action against its neighbor.
The U.S. Department of Justice issued a warning that American businesses and banks will face likely cyberattacks from Russia.
Investors were trying to reduce exposure to risky assets heading into the holiday weekend given the volatility in Ukraine, according to Oanda senior market analyst Ed Moya.
“Investors are having a hard time holding onto risk as the likelihood that the standoff between the West and Russia will ultimately lead to some ground conflict,” he said in a research note. “U.S. stocks gave up earlier gains after the Russian press confirmed reports of the evacuation of residents from East Ukraine to Russia and then turned negative after reports over an explosion in Donetsk.”
With risk of an invasion seen as high, Moya said Wall Street “will remain jittery until we see a major de-escalation, which now seems unlikely.”
Nasdaq Dips As Tech Stocks Struggle Again
The Nasdaq was the worst-hit major index once again as tech stocks struggled. But it was off lows heading into the final bell as it gave up 0.7%.
The S&P 500 managed to fight its way back, but still was down 0.6%. Dollar Tree (DLTR) fared best with a gain of 5%.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34124.56 | -187.47 | -0.55 |
| S&P 500 | (0S&P5) | 4353.84 | -26.42 | -0.60 |
| Nasdaq | (0NDQC ) | 13565.76 | -150.96 | -1.10 |
| Russell 2000 | (IWM) | 199.72 | -1.48 | -0.74 |
| IBD 50 | (FFTY) | 37.24 | -0.01 | -0.03 |
| Last Update: 3:30 PM ET 2/18/2022 | ||||
The S&P sectors were mixed. Consumer staples and materials were among the areas in the green. Technology and energy were the worst performers.
Small caps also were well off lows, with the Russell 2000 almost flat.
Growth stocks actually managed to move into positive territory. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, was up 0.6%.
Dow Jones Today: Intel Crumbles As Cisco Impresses
The Dow Jones Industrial Average was well off lows for the day but remained in the red.
Cisco Systems (CSCO) impressed with a gain of more than 3%. The stock is benefiting after beating earnings estimates earlier this week.
The stock managed to rally back above its 200-day line due to the strength of the move.
Intel (INTC) was faring worst on the downside, giving up nearly 5%. The chip giant is losing ground on the key 50-day line.
Roku Stock Craters On Earnings
Roku stock was taking a battering following an underwhelming earnings report.
It reported late Thursday EPS of 17 cents on sales of $865.3 million in Q4. Wall Street expected earnings of 5 cents per share on sales of $894 million, according to FactSet.
Roku earned 49 cents a share on sales of $649.9 million in the same quarter of the prior year. It blamed higher component prices and supply chain woes.
Roku’s outlook was the big shocker though. Roku guided revenue of $720 million in the current quarter, far below analyst expectations for $750.9 million.
Roku stock was down nearly 25%. It was already trading below its 50-day line but lost further ground on the benchmark.
Supply Chain Woes Imperil GE Stock
GE stock, a favorite with investors before a stunning fall from grace, was struggling Friday.
It was being punished after warning profits in 2022 could be affected by supply chain issues. It said these are pressuring its health care, aviation and renewable energy businesses.
GE said these issues could be in place through the first six months of the year of 2022.
The company said in a filing that the supply chain headwinds “may continue to partially mask the significant progress we are making across our businesses.”
GE stock was off lows but remained down nearly 5%.
EV Report Drives Ford Stock Higher
Ford stock was given a boost after Bloomberg reported CEO Jim Farley is looking into whether the company should separate its electric vehicle operations from its internal combustion engine business.
The executive is even weighing whether one of the two businesses should be spun off, according to the report.
The firm refused to be drawn on the speculation. It previously said it has “no plans” to spin off its EV or traditional vehicle businesses
Ford stock was up nearly 4%, but remains rooted below the key 50-day moving average. It has come back down to earth after a stellar 2021.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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The post Dow Jones Fights Amid Ukraine Invasion Fears; Roku Collapses On Earnings; GE Stock Dives On This appeared first on Investor’s Business Daily.
