The stock market erased earlier losses but still traded mostly lower Wednesday at midday. Technology stocks led the market lower. Oil prices shot up, as Russia’s war on Ukraine became more entrenched.
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The Nasdaq was up less than 0.1%. The S&P 500 fell 0.4% and the Dow Jones Industrial Average lost 0.7%. The Russell 2000 was down 0.3%. Volume fell on the Nasdaq but rose on the NYSE compared with the same time on Tuesday.
U.S. crude rose 2.5% to $114.60 a barrel, after sinking below $95 last week.
Russia said Tuesday that storm damage may cause a temporary drop in oil exports via a pipeline from Kazakhstan to the Black Sea, The Wall Street Journal reported. The loss of around 1 million barrels a day represents about 1% of global oil demand. Repairs could take up to two months.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34553.61 | -253.85 | -0.73 |
| S&P 500 | (0S&P5) | 4494.37 | -17.24 | -0.38 |
| Nasdaq | (0NDQC ) | 14120.17 | +11.35 | +0.08 |
| Russell 2000 | (IWM) | 206.84 | -0.66 | -0.32 |
| IBD 50 | (FFTY) | 39.52 | +0.10 | +0.25 |
| Last Update: 11:58 AM ET 3/23/2022 | ||||
Russia-Ukraine War Could Be Drawn Out
Meanwhile, President Joe Biden was traveling to a NATO meeting where he and other Western leaders were expected to strengthen NATO forces near Ukraine and increase sanctions on Russia.
The yield on the 10-year Treasury note dipped slightly to 2.35%. Still, it’s the highest since May 2019 and up about 28% from 1.84% at the end of February. At the same time, the yield curve is flattening, which may be an early sign of an economic slowdown.
Shipping companies were among the gainers Wednesday morning. Genco Shipping & Trading (GNK) gained 8% and broke out of a cup-with-handle base in heavy trading. The stock is already extended past its buy range from its 21.99 buy point, which goes up to 23.09.
The move is part of a rally in shipping stocks that’s taken the group to No. 14 out of 197 industry groups. Cargo shippers are up 12% this month after rising 11.6% in February. Zim Integrated Shipping (ZIM) made a new high as it extends its March rally to nearly 40%.
Tesla Gains As Stock Market Falls
The Technology Select Sector SPDR (XLK) ETF fell 0.4% and may face resistance at its 200-day moving average.
Adobe (ADBE) tumbled 7.5%, leaving the stock on pace to end a six-day win streak. The software company late Tuesday beat analysts’ estimates for its February-ended quarter. But management’s guidance for the current quarter missed expectations.
Tesla stock (TSLA) gained another 3% Wednesday morning, in what would be a seven-day win streak. Shares decisively reclaimed their 50-day line this week, as they move up the right side of a cup base that has a 1,208.10 buy point. Be on the lookout for a potential handle to offer a lower buy point.
On Tuesday, Tesla officially opened its new factory near Berlin, kicking off deliveries as it establishes a manufacturing footprint in Europe.
The stock traded as high as 1,243.49 on Nov. 4. If it closes higher today, Tesla stock would have the longest winning streak since August 5, 2021, when it rose for seven straight days. And it would be the best seven-day stretch since the seven days ending Nov. 1, 2021, when it rose 35.2%, according to Dow Jones Market Data.
Fertilizer stocks resumed last week’s gains as Russia’s attack on Ukraine continued. Russia and Ukraine are major suppliers of fertilizer exports, and the war is seen as cutting off supply. Intrepid Potash (IPI) shot up 8% Monday, and Mosaic (MOS) gained 3%. IBD 50 stock CF Industries (CF) made new highs.
JinkoSolar, Nvidia Fall On Company News
JinkoSolar (JKS) reported fourth-quarter results early Wednesday that beat on revenue but missed on earnings, as the company cited continuing supply chain issues. JKS stock fell 1.4% on the news.
The solar equipment company reported adjusted earnings of 67 cents a share on revenue of $2.57 billion. Analysts expected JinkoSolar to report earnings of 90 cents a share on revenue of $2.15 billion. Revenue jumped 74% from the year-ago period.
Nvidia (NVDA) fell 2% and has erased the week’s earlier gains. On Tuesday, the company announced updates to its Omniverse platform, which is used for online collaboration and simulation. It also introduced new hardware and software for AI and accelerated computing.
The Innovator IBD 50 ETF (FFTY) fell 0.3% as industrial and cyclical leaders made the index’s best gains.
In economic news, new home sales fell to 772,000 in February from a revised 788,000 the previous month. Economists expected 810,000. The stock market saw the SPDR S&P Homebuilders ETF (XHB) fall 2.5% at midday.
Follow Michael Molinski on Twitter @IMmolinski
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