The stock market was around session lows Wednesday at midday as tech stocks led decliners. The U.S. announced expanded sanctions on Russia, propelling fertilizer, oil and defense stocks higher.
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The Nasdaq was down 2.3% and back below the 14,000 level. The S&P 500 was down 1.1%. The Dow Jones Industrial Average fell 0.6%. The Russell 2000 lost 1.3%.
Volume rose on the Nasdaq and NYSE compared with the same time on Tuesday.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34425.70 | -215.48 | -0.62 |
| S&P 500 | (0S&P5) | 4474.10 | -51.02 | -1.13 |
| Nasdaq | (0NDQC ) | 13880.33 | -323.84 | -2.28 |
| Russell 2000 | (IWM) | 200.29 | -2.70 | -1.33 |
| IBD 50 | (FFTY) | 36.84 | -0.94 | -2.49 |
| Last Update: 12:00 PM ET 4/6/2022 | ||||
Fertilizer, oil and defense stocks mostly gained as the U.S. on Wednesday expanded its sanctions against Russia in response to its war on Ukraine. For the first time, the expanded sanctions included the adult children of Russian President Vladimir Putin.
Fertilizer And Oil Stocks Gain
Fertilizer stocks were the biggest gainers, with CF Industries (CF), Intrepid Potash (IPI) and Mosaic (MOS) all gaining between 6% and 11%. Fertilizer stocks are caught in a severe supply crunch as Russia is cut off from exporting its fertilizers.
The SPDR Energy Select ETF (XLE) gained 1.4%, beating all S&P sectors. But crude oil prices fell 3% to $99 a barrel.
The stock market uptrend is stumbling this week. Part of the reason is rising Treasury yields and an inversion of the yield curve. On Wednesday, Philadelphia Fed President Patrick Harker joined a chorus of Fed officials who advocate a more aggressive stance. He said he expects “a series of deliberate, methodical hikes as the year continues and the data evolve.”
The 10-year yield rose 4 basis point to 2.59% at midday.
Simply Good Foods (SMPL) beat analysts’ quarterly earnings and sales expectations ahead of Wednesday’s open. But shares still dropped 1%.
The Innovator IBD 50 ETF (FFTY) fell 2.8%. IBD 50 stock Darling Ingredients (DAR) fell below its 81.22 buy point after hesitating around that level for a couple of weeks.
Zim Integrated Shipping (ZIM) fell 5.7% and is now below its 50-day line.
Tech Stocks Lead Stock Market Losses
Technology Select Sector SPDR slid 2.3% and was among the weakest S&P sector ETFs after gapping below its 50- and 200-day moving averages. The consumer discretionary sector also fell more than 2%, and SPDR S&P Transportation ETF (XTN) was off 2.5% as airline stocks fell broadly.
JetBlue (JBLU) slid nearly 6% in heavy volume after the airline offered to buy Spirit Airlines (SAVE) in a deal valued at $3.6 billion. Spirit in February agreed to a buyout from Frontier Airlines parent Frontier Group Holdings (ULCC) worth $2.9 billion.
Spirit Airlines stock, which shot up more than 22% Tuesday on news of the JetBlue offer, fell 1.7% Wednesday morning. Frontier Group fell more than 7% in heavy trading.
In other buyout news, Dave & Buster’s Entertainment (PLAY) agreed to acquire family entertainment company Main Event for $835 million. Dave & Buster’s stock fell 8% in big volume. The stock hit a 52-week high last week.
Follow Michael Molinski on Twitter @IMmolinski
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