Dow Jones Dives As Russia-Ukraine War Pushes Oil Higher; Apple Stock, Amazon Fall Despite Bullish Calls

The Dow Jones Industrial Average took a dive Monday as the Ukraine-Russia war sent oil prices higher again. Apple (AAPL), Amazon (AMZN) and Netflix (NFLX) fell despite bullish analyst calls. Visa (V) and Mastercard (MA) dipped after suspending operations in Russia.

A trio of stocks managed to test buy points despite the bearish action. Railroad play CSX (CSX), gold play Newmont (NEM) and National Fuel Gas (NFG) attempted breakouts.

X

Volatility was up once again, with the Cboe Volatility Index, or VIX, up around 10%. Volume was running higher on both the New York Stock Exchange and the Nasdaq vs. the same time Friday, a negative on a down day.

Meanwhile, the yield on the benchmark 10-year Treasury note managed to inch higher. It was up about two basis points to 1.74%. Oil was gushing though, with West Texas Intermediate crude climbing nearly 4% to about $120 per barrel.

There are worries that surging commodity prices could spark a painful recession.

Nasdaq, Growth Stocks Mauled

The Nasdaq was faring worst out of the major indexes, dipping more than 3% with less than an hour to go in the session. Fortinet (FTNT) was lagging most here with a decline of more than 12%.

The S&P 500 was also toiling, falling 2.7%. PVH (PVH) fell hard on fears over European exposure, giving up more than 15%.

The S&P sectors were nearly all red. Only energy and utilities were in positive territory. Materials and consumer discretionary were the worst performers.

Small caps were actually holding up relatively well, though the Russell 2000 still knifed 1.9% lower.

Growth stocks were being given the stiffest spanking by the bears. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, plunged 3.6%.

Dow Jones Dives, JNJ Stock Leads Upside

The Dow Jones Industrial Average was being forced lower by the marauding bears. It gave up nearly 700 points as it fell 2%.

Johnson & Johnson (JNJ) was offering a crumb of comfort, leading the upside with a near 2% gain.

But the vast majority of components were in the red, with the like of Nike (NKE), which gave up nearly 5%, and Walt Disney (DIS), down %, among the worst losers.

Apple Stock, Amazon, Netflix Struggle Despite This

Bullish analyst calls were not enough to help a trio of FANG stocks move higher.

Apple stock fell nearly 2% amid the broad bearish action. It lost ground on its 50-day moving average and a 183.04 consolidation pattern entry, according to MarketSmith analysis.

It dipped despite the fact Bank of America reiterated its buy rating on AAPL stock ahead of the firm’s new product launch day Tuesday.

Nevertheless, AAPL stock boasts excellent earnings and price performance overall, and was recently touted by famed investor Warren Buffett of Berkshire Hathaway (BRKB).

Amazon failed to get a lift after JPMorgan Securities touted the stock as a top idea. It lost ground on all its major moving averages as it slipped more than 5%.

JPMorgan said it believes the tech giants increased U.S. e-commerce share from 39.2% in 2020 to 41.6% in 2021.

Netflix stock fared relatively better, dipping just over 1%. However it is in the bottom 16% of stocks in terms of price performance over the past 12 months.

It was struggling despite Wells Fargo reiterating it overweight rating the stock. It urged investors to show patience as the streaming giant chases additional subscribers.

Visa Stock, Mastercard Tumble After Russia Suspension

Both Visa stock and Mastercard stock were struggling after it emerged they were suspending operations in Russia.

While shoppers will be able to use cards for purchases within Russia until their expiry dates, they will no longer work abroad or for international payments online.

In addition, cards issued abroad will no longer work at shops or ATMs in Russia.

Visa stock fell nearly 4%, losing further ground on the 50-day moving average. Mastercard fell by a similar amount. Both stocks remain mired near the bottom of consolidation patterns.

American Express (AXP), which announced similar measures, ceded its 200-day moving average as it fell more than 6%.

These Stocks Test Buy Points

CSX stock is just below its buy zone after earlier chugging above an ideal entry of 38.11.

CSX is tied with Union Pacific (UNP) for top spot in the rail transport industry group.

Rail stocks popped after it emerged famed investor Bill Ackman has built a new stake in Canadian Pacific Railway.

His firm, Pershing Square Capital Management, disclosed in a 13F filing that it had a stake of 2.8 million shares in Canadian Pacific at the end Q4. He has also increased his position since then, a spokesman for the firm confirmed.

Newmont Breakout

Newmont is now extended after breaking past a cup base entry of 75.41 on a weekly chart.

The gold stock has seen its relative strength line roar to new heights. Earnings are lagging stock market performance quite considerably here.

Both CSX stock and Newmont feature on the prestigious IBD Leaderboard list of leading stocks.

National Fuel Gas is in a buy zone after passing a cup base entry of 66.05. Both earnings and market performance are strong for the utilities play.

Investors should remember that, given the market has been in a correction since Feb. 23, any buys carry much more risk.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.

YOU MIGHT ALSO LIKE:

Russia’s Ukraine Invasion Lifts Defense Stocks, What Investors Must Know

MarketSmith: Research, Charts, Data And Coaching All In One Place

These Are The 5 Best Stocks To Buy And Watch Now

The Ultimate Warren Buffett Stock Is Near A Buy Point, But Should You Buy It?

Top Millennial And Gen Z Stock Picks: Should You Buy Them Too?

The post Dow Jones Dives As Russia-Ukraine War Pushes Oil Higher; Apple Stock, Amazon Fall Despite Bullish Calls appeared first on Investor’s Business Daily.