The stock market went back to its losing ways, erasing much of the prior day’s rally. Economic and earnings reports were in focus, along with the Ukraine crisis.
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The Nasdaq composite sold off 1.2% as the technology and communications services sector suffered losses of more than 1%. The S&P 500 lost 0.7% and is barely above its 200-day moving average.
The Dow Jones Industrial Average fell 0.6%. Volume fell on the Nasdaq and NYSE compared with the same time on Tuesday.
The S&P 500 rose 1.6% Tuesday after Russia announced it was withdrawing some troops from around Ukraine. But a top NATO official said Russia continues its military buildup in the region. Talks on de-escalating the crisis continued Wednesday.
Retail Sales Rise Surprisingly
U.S. retail sales rose 3.8% in January from the previous month, much better than the 2% increase economists had forecast. Excluding cars and trucks, sales rose 3.3%, above estimates for a 1% improvement.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34793.99 | -194.85 | -0.56 |
| S&P 500 | (0S&P5) | 4439.51 | -31.56 | -0.71 |
| Nasdaq | (0NDQC ) | 13965.07 | -174.69 | -1.24 |
| Russell 2000 | (IWM) | 205.08 | -0.98 | -0.48 |
| IBD 50 | (FFTY) | 37.90 | -0.26 | -0.68 |
| Last Update: 10:06 AM ET 2/16/2022 | ||||
“The strong, broad-based rebound in retail sales after the weak December is particularly impressive given the drag from the omicron variant and serves as a reminder that the U.S. consumer doesn’t stay down for long,” Jeff Buchbinder, Equity Strategist for LPL Financial, said in a commentary. “Rising wages are supporting spending despite high inflation.”
SPDR S&P Retail ETF (XRT) fell 0.6% amid broad stock market declines.
At 2 p.m. ET, the Federal Reserve will release minutes of its January policy meeting. With inflation still overheated, investors are trying to determine how large a rate increase the Fed plans for next month’s meeting. Odds of a half-point rate hike now exceed those for a quarter-point increase.
Earnings In Today’s Stock Market
Fertilizer maker CF Industries (CF) reported Q4 results that missed estimates. Still, the company expects growth into 2023. The stock reversed higher, up 1.6%. If Russia were to invade Ukraine, sanctions could include fertilizers, a risk for CF.
Airbnb (ABNB) reported fourth-quarter sales and earnings that beat analysts’ estimates as did its first-quarter outlook. The stock climbed 2.3%, extending a rebound from its Jan. 31 low. The vacation rental company’s shares are forming a cup base.
Shopify (SHOP) plunged more than 15% to the lowest since June 2020 despite that fourth-quarter earnings and revenue topped consensus estimates. The company’s outlook appeared to disappoint the stock market.
Analog Devices (ADI) easily beat expectations for its fiscal first quarter and guided higher for the current period. The chipmaker rose 0.6% but remains in a downtrend.
IBD 50 Earnings In Stock Market’s Eye
Innovator IBD 50 ETF (FFTY) fell 0.7%.
NMI Holdings (NMIH) surged nearly 4% after the mortgage insurance firm reported a 24% rise in Q4 earnings. The stock is extended from a 25.70 buy point.
Trade Desk (TTD) tumbled more than 8% in heavy volume, sinking back below the 200-day line. The advertising tech company’s fourth-quarter earnings and revenue beat views and its guidance for the current quarter topped estimates. Yet, the stock still sold off.
Nvidia (NVDA) will announce results after today’s close. Analysts expect Nvidia to earn $1.22 a share, an increase of 58%, on sales of $7.40 billion, up 48%, according to FactSet. Nvidia fell 2.5% Wednesday morning.
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