The stock market soared Tuesday after Russia said it was pulling troops from Ukraine’s border. Investors turned their attention to earnings and the easing of Covid cases and restrictions. Travel and tourism industries led the way, from hotels and airlines to amusements parks, online travel sites and cruise ship operators.
X
The Nasdaq composite rallied 1.4%. The S&P 500 rose 1.2% and climbed back above its 200-day moving average.
The Dow Jones Industrial Average rose 1% and was inches away from retaking the 200-day line. The Russell 2000 rose 2.1%.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34912.96 | +346.79 | +1.00 |
| S&P 500 | (0S&P5) | 4453.94 | +52.27 | +1.19 |
| Nasdaq | (0NDQC ) | 14028.94 | +238.02 | +1.73 |
| Russell 2000 | (IWM) | 204.87 | +4.19 | +2.09 |
| IBD 50 | (FFTY) | 37.94 | +0.79 | +2.13 |
| Last Update: 1:20 PM ET 2/15/2022 | ||||
Volume rose on the Nasdaq and was lower on the NYSE compared with the same time on Monday.
Ukraine And Inflation Take Back Seat To Earnings, Travel
Russia’s Defense Ministry said it withdrew some troops from near Ukraine, but large-scale military maneuvers continued. NATO, Ukraine and other Western officials warned that combat units had moved into forward positions, while Russia’s military buildup still was estimated to exceed 120,000 troops. Talks to de-escalate the crisis continued.
The price of U.S. crude oil — which had been rising as the crisis escalated — slid 3.9% to $91.88 a barrel.
Inflation showed more indications that it is going up, as Tuesday’s report on the producer price index for January showed a 9.7% surge on a year-over-year basis. That was above forecasts for 9.2%. Wholesale prices rose 1% in January from the previous month, double the forecast for a 0.5% increase.
Jennifer Lee, senior economist at BMO Capital Markets, said the January price increase was the largest since January 2021, and was mainly boosted by food costs (+1.6%), energy (+2.5%), services (+0.7%), and construction (+3.6%).
“While these gains failed to overtake November’s record-breaking results, this is still podium-worthy, in a bad way,” Lee said.
Stock Market Bounces As Covid Cases Drop, Restrictions Ease
The number of new Covid-19 cases in the U.S. is declining from a January peak. New cases averaged around 175,000 per day, according to data from Johns Hopkins University. That is down from around 800,000 per day in mid-January. The average number of coronavirus-related deaths remains high, averaging 2,200 per day.
Perhaps more importantly was the fact that many states have eased their mask restrictions. California said Monday it would end its overall statewide mask mandate on Wednesday, while Maryland said it would end its mandate in public buildings. Rhode Island, Delaware and Nevada lifted statewide mandates last week.
Shares of Walt Disney (DIS) and Six Flags (SIX) both gained, up 2.3% and 3.3% respectively.
Cruise line operators Royal Caribbean (RCL) and Norwegian Cruise Lines (NCLH) both rallied, up 3% and 5.5% respectively. Delta Air Lines (DAL) climbed 5.3%.
Marriott International (MAR) climbed 3.8% after the hotel operator beat fourth-quarter estimates. Marriott shares remain in buy range from the 171.26 buy point of a cup-with-handle base.
Copa (CPA), a Panama-based airline which flies to 54 destinations throughout the Americas, gained 6.4%. The shares are just shy of a 95.01 buy point after an eight-month long consolidation. The stock is above a handle entry at 88.08. Copa released fourth-quarter adjusted earnings last week of $1.98 per share on sales of $575 million.
Among travel-related ETFs, the S&P Transportation ETF (XTN) jumped 2.9%, the Travel Tech ETF (AWAY) soared 4%, and U.S. Global Jets (JETS) gained 4.8%.
The Innovator IBD 50 ETF (FFTY) rose 2.2% and is on track to end a three-day losing streak.
Tower Semiconductor (TSEM) shares skyrocketed 42% after Intel (INTC) agreed to acquire the Israel-based chip foundry in a deal valued at nearly $6 billion.
Alpha & Omega Semiconductor (AOSL) rallied more than 10%, possibly in sympathy with Tower Semiconductor.
Follow Michael Molinski on Twitter @IMmolinski
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