The Dow Jones Industrial Average rallied off lows after President Joe Biden announced new sanctions on Russia over Ukraine. Cybersecurity stocks gained as the risk of cyberwarfare rose, with Fortinet (FTNT), Qualys (QLYS) and Palo Alto Networks (PANW) among the winners. Alibaba (BABA) fell sharply.
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Volatility retreated following the president’s speech, with the Cboe Volatility Index, or VIX, down 0.5%. Volume was markedly higher on the New York Stock Exchange and the Nasdaq.
The yield on the benchmark 10-year Treasury note slipped two basis points to 1.96% as bond buying increased. Oil was well off highs for the day. West Texas Intermediate crude had briefly topped $100 per barrel, but was still up 0.6% at nearly $93.
Biden Ramps Up Russia Sanctions, Keeps More In Reserve
President Joe Biden announced new sanctions against Russia following its invasion of Ukraine last night. However, they were not as severe as they could have been.
New measures will target Russian banks as well as elites and their families.
“Putin is the aggressor,” Biden said during a White House press conference. “Putin chose this war and now he and his country will bear the consequences.”
However, Biden withheld some measures, such as directly sanctioning President Vladimir Putin and stopping Russia from using the Swift payment system.
European nations were against the latter measure. Swift is important as it is used by over 11,000 financial institutions to send secure payment orders. It is vital for moving funds to Russia’s oil and gas sector. Europe is heavily reliant on Russia for oil.
The president said disconnecting Russia from Swift is “always an option” going forward.
The possibility of cybersecurity strikes against Russia are said to have been tabled, but the president made no mention of moving on this front.
Nasdaq Gains As Tech Stocks Shine
The Nasdaq rallied furiously as it powered up more than 2%. Moderna (MRNA) surged nearly 13% on earnings.
The S&P 500 powered from negative territory as it gained 0.5%. Enphase Energy (ENPH) was a winner here, popping almost 13%.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32934.73 | -197.03 | -0.59 |
| S&P 500 | (0S&P5) | 4244.76 | +19.26 | +0.46 |
| Nasdaq | (0NDQC ) | 13302.49 | +265.00 | +2.03 |
| Russell 2000 | (IWM) | 195.69 | +2.71 | +1.40 |
| IBD 50 | (FFTY) | 36.07 | +0.37 | +1.04 |
| Last Update: 2:58 PM ET 2/24/2022 | ||||
The S&P sectors were mixed. Technology, buoyed by cybersecurity stocks, and communication services were the best performers. Financials and consumer staples were lagging.
Small-cap bulls were managing to fight off the bears, with the Russell 2000 gaining just over 1%.
Growth stocks also sprinted out of negative territory. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, was up around 1%.
Dow Jones Rallies, JPMorgan Stock Lags
The Dow Jones Industrial Average was well off the day’s lows but remained in negative territory. It was down 0.6%.
JPMorgan Chase (JPM) was among the worst performers as it gave up around 3.5%. It gapped down to consolidation lows earlier in the session.
Merck (MRK) overtook it as the worst performer of the day as it slid about 3.6%.
Salesforce.com (CRM) fared best as it rose more than 6%. Leaderboard stock Microsoft (MSFT) also did well, rising more than 3%.
These Cybersecurity Stocks Jump
While direct warfare between the West and Russia remains unlikely, cybersecurity stocks rallied amid rising fears of cyberwarfare.
Fortinet stock surged more than 10% as its relative strength line got a boost. It remains shy of a consolidation-pattern buy point of 371.87, MarketSmith analysis shows.
Israeli security play Check Point Software (CHKP) popped more than 4%. It is now extended past a double-bottom-base buy point of 124.46.
NortonLifeLock (NLOK) was up more than 2% while Qualys snapped a downtrend and pushed back above its 200-day line as it rose nearly 9%.
Palo Alto Networks (PANW), which is eying a 572.77 buy point, jumped more than 12%. It boasts solid earnings and market performance.
Alibaba Stock Takes Tumble
Chinese e-commerce giant Alibaba was given a bloody nose amid mixed earnings. It was well off lows for the day but remained down over 2%.
Alibaba’s earnings per share fell 22% to $2.65 but still came in above views. However, revenue was light amid rising competition.
This was the company’s slowest-ever pace of quarterly revenue growth since going public in 2014.
The Chinese e-commerce giant was seeing its sales pressured amid intensifying competition.
Alibaba stock lost further ground on its declining 50-day and 200-day moving averages.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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