The stock market tumbled Thursday morning after Russia invaded Ukraine, but the tech-heavy Nasdaq escaped most of the carnage as the market trimmed opening losses.
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The Nasdaq composite posted a loss of 0.1% after paring early losses.
The S&P 500 was down 1% after falling as much as 2.6%. At Thursday’s low, the index was less than 15% below its prior high. The Dow Jones Industrial Average fell 1.9%, leaving its overall decline since its peak on Jan. 4 at about 12%.
U.S. stocks were broadly lower, with decliners over advancers by more than 5-to-1 on the Nasdaq and by more than 6-to-1 on the NYSE. Volume rose sharply on the NYSE and Nasdaq compared with the same time on Wednesday.
Oil And Gold Prices Surge; Treasury Yields Fall
The Cboe Volatilty Index, a measure of investor fear, vaulted 10% after rising to the highest point since Jan. 24.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32533.79 | -597.97 | -1.80 |
| S&P 500 | (0S&P5) | 4186.25 | -39.25 | -0.93 |
| Nasdaq | (0NDQC ) | 13050.29 | +12.80 | +0.10 |
| Russell 2000 | (IWM) | 192.14 | -0.84 | -0.44 |
| IBD 50 | (FFTY) | 35.58 | -0.12 | -0.34 |
| Last Update: 12:12 PM ET 2/24/2022 | ||||
Meanwhile, the yield on the 10-year Treasury note fell 7 basis points to 1.92%, and the price of gold soared 0.9% to $1,927, its highest since November 2020.
The price of U.S. crude oil jumped nearly 8% to $99.47 a barrel, the highest since July 2014. Europe’s North Sea benchmark Brent crude briefly topped $105 per barrel. Natural gas prices also spiked.
Russian forces staged military attacks on multiple Ukrainian cities, including the capital of Kyiv, news reports and social media posts said. Russian President Vladimir Putin early Thursday announced a “special military operation” designed to bring down the government of Ukraine and demilitarize the country.
Western leaders condemned Russia, and promised further sanctions. However, Europe gets much of its oil and gas from Russia.
Moderna, CF Stocks Gain
Moderna (MRNA) stock popped 10% Thursday after its earnings and sales beat Wall Street forecasts for the fourth quarter of 2021. Guidance for 2022 came in light on sales of its Covid-19 vaccines.
During the fourth quarter, Moderna earned $11.29 per share, minus certain items, on $7.21 billion in revenue. Earnings turned around from a year-earlier loss, and revenue skyrocketed a quadruple-digit percentage. Moderna’s Covid vaccine first gained authorization in December 2020.
Revenue and earnings easily beat analysts’ consensus projection for earnings of $9.96 per share on $6.8 billion in sales, according to FactSet.
For the year, Moderna has signed agreements worth $19 billion in sales of its Covid vaccine, with options for another $3 billion in doses. The company expects Covid to become an endemic disease, like the flu, and expects a sales boom in the second half of 2022. Importantly, the company says it’s in active discussions for additional orders this year.
CF Industries (CF), an IBD 50 stock, vaulted 6% Thursday morning, well past its buy point of 74.87, but pared gains. Last week, its earnings came in just shy of estimates, but it was enough for the stock to gain strength. It previously broke expectations with a sharp drop that violated a trend line entry, but it found support at the 50-day moving average. Its relative strength line is also looking bullish. Still, sanctions against Russia could include fertilizers, a risk for CF.
Financials Lower As Energy Sector Dips
Energy Select Sector SPDR (XLE) reversed to a loss of 0.3% in spite of the surge in oil prices. The ETF has been finding support at its 21-day exponential moving average. Consumer discretionary, financial and technology sectors tumbled.
VanEck Russia ETF (RSX), which had fallen more than 17% this week, fell another 23% Thursday. Freedom Holding (FRHC), a Kazakhstan-based company that provides financial services in Russia, Ukraine and other countries, skidded 7% to a June 2021 low.
Among major U.S. stocks, Apple (AAPL) fell 1.3% to its 200-day moving average, but appears to be finding support there. Alphabet (GOOGL) appears to be holding at around the 2,500 level and Nvidia (NVDA) around the 209 level.
Innovator IBD 50 ETF (FFTY) slid 0.4%. Apart from some oil and mining stocks, the IBD 50 was nearly entirely lower. A few stocks triggered sell signals.
Financials were among the hardest hit. American Express (AXP) gapped down 3.5%, shy of its 189.13 buy point from the Feb. 8 breakout. East West Bancorp (EWBC) slid 6% in active trading.
Tesla (TSLA) stock continued its slide, falling 1.3% Thursday at midday as it threatened to add to a four-day losing streak.
Follow Michael Molinski on Twitter @IMmolinski
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