The Dow Jones Industrial Average fell late after President Joe Biden banned imports of Russian oil. Apple (AAPL) edged down after it announced new products but Caterpillar (CAT) led the blue chips. Solar stocks shone brightest, with SolarEdge Technologies (SEDG) clearing an aggressive buy point. Callon Petroleum (CPE) also tested an entry.
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Volatility was up once again, with the Cboe Volatility Index, or VIX, gaining nearly 3%. Volume was running higher on both the New York Stock Exchange and the Nasdaq according to preliminary data, a negative on a down day.
Meanwhile, the yield on the benchmark 10-year Treasury note climbed higher. It gained 10 basis points as it rose to 1.85%.
An early sell-off turned sharply positive due to an interview where Ukrainian President Volodymyr Zelenskyy signaled he is open to Ukraine not joining NATO and to a peace agreement with Russia.
“(Putin) should know one important thing that he cannot deny, that stopping the war is what he’s capable of,” Zelenskyy told ABC News.
Biden Bans Russian Oil
The market also seemed to take the banning of Russian oil imports by president Biden Tuesday in its stride.
“Russian oil will no longer be acceptable at U.S. ports, and the American people will deal another powerful blow to Putin’s war machine,” a stern Biden said at the White House.
Russian crude oil imports, certain petroleum products, liquefied natural gas and coal are all banned with immediate effect under the executive order the president signed Tuesday.
Oil prices gushed higher following the announcement, with West Texas Intermediate crude climbing 5% to about $125 per barrel. It closed off highs for the day though.
Nasdaq Falls Late, Small Caps Excel
The Nasdaq ended a wild session in the red, giving up 0.3%. Airbnb (ABNB) fared best with an 8% gain while Intuitive Surgical (ISRG) lagged most with a dip of 8%.
The S&P 500 was also dragged under by the negative action. It closed down 0.7%. Seagate Technology (STX) fared worst here, dropping 9.5%.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32631.72 | -185.66 | -0.57 |
| S&P 500 | (0S&P5) | 4170.62 | -30.47 | -0.73 |
| Nasdaq | (0NDQC ) | 12795.55 | -35.41 | -0.28 |
| Russell 2000 | (IWM) | 194.81 | +1.09 | +0.56 |
| IBD 50 | (FFTY) | 36.14 | -0.45 | -1.23 |
| Last Update: 4:10 PM ET 3/8/2022 | ||||
The S&P sectors were nearly all red. Only energy and consumer discretionary were in positive territory. Health and consumer staples were the worst performers.
Small caps stood out by posting a gain. The Russell 2000 clambered 0.6% higher.
Growth stocks were hit hardest by the bears. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, fell 1.2%.
Dow Jones Today: Caterpillar Stock Leads Upside
The Dow Jones Industrial Average also fell into negative territory late. It gave up nearly 200 points as it fell 0.6%.
Caterpillar was the top upside performer as it gained nearly 7%. This saw the machinery giant clear its 50-day and 200-day moving averages, according to MarketSmith analysis.
Coca-Cola (KO) and Procter & Gamble (PG) fared worst of all, both dropping about 4%.
Coca-Cola followed McDonald’s (MCD) and Starbucks (SBUX) in suspending their business operations in Russia.
Apple Stock Dips After Product Launch
Apple Stock closed the day down 1.2% after it hosted its latest product launch.
The event, broadcast live online from Apple Park headquarters in Cupertino, California, saw a slew of products unveiled.
Perhaps most notable was a new budget iPhone SE which will combine iPhone 8 parts with a faster A15 chip. It will retail for $429 and will hit store shelves on March 18.
Perhaps less exciting, new colors were unveiled for the iPhone 13 and iPhone 13 Pro.
Apple also announced three other products, an iPad Air, a Mac Studio computer that utilizes the M1 Ultra chip, and a 27-inch studio display monitor.
AAPL stock is trading below consolidation pattern entry. The ideal buy point here is 182.04, according to MarketSmith analysis.
Solar Stocks Shine Brightest, Offer Aggressive Opportunity
Solar stocks were shining amid the bull charge. And while it ended off highs, Energy-Solar was the top performing industry group of the day.
SolarEdge Technologies, which leads the group, cleared an aggressive trendline entry point of 323.
The Israeli solar stock boasts a strong mix of earnings and market performance. Big money has also been piling into SEDG in recent weeks.
Other solar stocks also spiked, with Enphase Energy (ENPH) popping more than 11%, JinkoSolar (JKS) surging more than 12% and SunPower (SPWR) rocketing around 19%.
Alternative energy sources look set to remain in focus for quite a while as energy prices continue to spike.
But there was also a traditional energy play that attempted to break out Tuesday.
Callon Petroleum closed under its buy point after passing a consolidation pattern entry of 65.55. The RS line has also just hit a new high.
The Texas oil and natural gas exploration and development company boasts a perfect Composite Rating of 99 and has seen triple-digit earnings growth over the past three quarters.
But remember, the market has been in a correction since Feb. 23 so any buys carry much more risk at the moment.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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