Stock Market Gains On Putin Comments Fade As Nasdaq Reverses Lower

The stock market opened higher Friday on signs that a diplomatic solution might be reached in the Russia-Ukraine war, but gains faded and the Nasdaq composite reversed lower.

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The Nasdaq opened 0.8% higher but was down 0.4% around 10:15 a.m. ET. The S&P 500 was flat, as strength in financials and industrials offset weakness in energy and metals.

The Dow Jones Industrial Average climbed 0.3%. McDonald’s (MCD) jumped 1.7% and is set to end a six-day slide. Insurer Travelers (TRV) jumped 2% to a new high. UnitedHealth Group (UNH) rose 0.4% and is nearing a double-bottom entry at 501.03.

Volume rose on the Nasdaq and fell on the NYSE compared with the same time on Thursday.

Financials and industrial stocks led the market. The yield on the 10-year Treasury note was little changed at 2% after three days of gains.

Internet stocks weighed. The European Union and the U.K. launched antitrust investigations into whether Alphabet (GOOGL) and Meta Platforms (FB) tried to illegally cooperate in digital advertising. Google parent Alphabet eased 0.1% and Facebook parent Meta lost 3%.

Putin Sees ‘Positive Shifts’ In Talks

The stock market greeted signs that Russia may accept some terms for ending its invasion of Ukraine.

On Friday, Russian President Vladimir Putin said some progress was made in talks with Ukraine, while the Kremlin said the fighting would end when the West addresses Moscow’s concerns. Putin cited “certain positive shifts” in talks, according to Reuters.

The top diplomats of Russia and Ukraine failed to reach a cease-fire agreement or an agreement to protect civilians in battle zones. But signs have emerged that Russia’s position could be shifting, The Wall Street Journal reported.

A Kremlin spokesman’s comments suggested the Kremlin could be open to achieving some of its aims through negotiations rather than by toppling Ukraine’s government. Russia began its invasion Feb. 24 with a stated goal of removing Kyiv’s pro-West government.

European stocks rallied. The German DAX index surged 3.4%, the Paris CAC 40 rose 2.5% and the London FTSE 100 rose 1.5%.

Stock Market Movers: Rivian, DocuSign

In major stock moves, Rivian (RIVN) deepened a four-month slump with a more than 5% loss. The electric pickup truck maker missed fourth-quarter estimates amid production problems. Last week, Rivian raised prices by up to 20%, citing rising component costs. The stock soared for five days after its IPO on Nov. 10, but has been declining since and hit new lows Friday.

DocuSign (DOCU) plummeted 20% to a two-year low after its fiscal-year guidance came in well below expectations. The company’s e-signature products, which grew in use during the earlier phases of the Covid-19 pandemic, have been declining as the pandemic eases. DocuSign’s January-quarter earnings met estimates and revenue topped views.

Oracle (ORCL) rose modestly even though the database software maker late Thursday missed earnings estimates. Adjusted earnings fell 3% to $1.13 a share, vs. expectations for $1.18 a share. Revenue of $10.5 billion met views.

IBD 50 Keeps Up With Stock Market

The Innovator IBD 50 ETF (FFTY) fell 0.4%.

Costamere (CMRE) rose 2% and the Greece-based containership company’s stock is nearing the 16.82 buy point of a cup base. The stock picked up momentum after earnings came out Wednesday.

Vertex Pharmaceuticals (VRTX) rose 1.7% and is climbing toward the 255.03 buy point of a flat base.

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