The stock market bounced Tuesday on conflicting reports in the Russia-Ukraine standoff, while investors showed no concern about another hot inflation report.
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Stock market indexes gapped up at the open. The Nasdaq composite rallied 1.8%. The S&P 500 rose 1.2% and climbed back above its 200-day moving average.
The Dow Jones Industrial Average rose 1.1% and was inches away from retaking the 200-day line. The Russell 2000 rose 1.8%.
Volume rose on the NYSE and Nasdaq compared with the same time on Monday.
Buyers hustled back to the stock market after indications of a thaw in the Russia-Ukraine crisis, although messages were mixed.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34864.60 | +126.54 | +0.36 |
| S&P 500 | (0S&P5) | 4450.90 | +32.26 | +0.73 |
| Nasdaq | (0NDQC ) | 14037.11 | +245.96 | +1.78 |
| Russell 2000 | (IWM) | 203.84 | +2.46 | +1.22 |
| IBD 50 | (FFTY) | 37.77 | +0.22 | +0.59 |
| Last Update: 10:04 AM ET 2/15/2022 | ||||
Russia’s Defense Ministry said it withdrew some troops from near Ukraine, but large-scale military maneuvers continued. 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 4.3% to $91.43 a barrel. European stocks rallied. Around 9:45 a.m. ET, the German DAX was up 1.6%, the Paris CAC 40 1.3% and the London FTSE 100 0.6%.
Stock Market Focuses On Ukraine, Not Inflation
Earlier today, the producer price index for January showed a 9.7% surge on a year-over-year basis, 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%).
The core PPI, which excludes food and energy prices, jumped 0.8%. On a year-ago basis, core prices rose 9.7%, or 8.5% excluding food and energy. “While these gains failed to overtake November’s record-breaking results, this is still podium-worthy, in a bad way,” Lee said.
Stock Market Due For A Bounce?
After three days of losses, investors started showing signs of extreme fear, which can signal a low in the market.
The Cboe Market Volatility S&P 500 index, or VIX, jumped as high as 31.74 Monday and ended more than 5% higher. Market lows often happen when the index spikes more than 20% above its 10-day moving average, and it did on Monday.
The put-call volume ratio, another sentiment gauge, also indicated excessive fear. Monday’s ratio of 0.97 was the highest since Jan. 25, also around the time of a short-term bottom in the market.
In earnings news, Marriott International (MAR) climbed 4.5% 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. The omicron variant weighed on travel in the latest quarter, but hotel stocks have been rebounding after cases crested and Covid restrictions eased.
Tower Semiconductor (TSEM) shares skyrocketed after Intel (INTC) agreed to acquire the Israel-based chip foundry in a deal valued at nearly $6 billion. The stock — which started soaring late Monday after the Wall Street Journal reported the deal was imminent — rose 42% Tuesday morning.
IBD 50 Outperforms Stock Market
The Innovator IBD 50 ETF (FFTY) rose 1.6% and is on track to end a three-day losing streak.
Alpha & Omega Semiconductor (AOSL) rallied more than 7%, possibly in sympathy with Tower Semiconductor. Alpha & Omega appears to be forming a cup with handle.
CarGurus (CARG) rose 3.7% and is trying to regain a 35.99 buy point from a double bottom base. Global Ship Lease (GSL) did regain its 26.61 buy point after rising 3.6%.
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The post Stock Market Rises More Than 1% On Ukraine News; Inflation Again Heats Up appeared first on Investor’s Business Daily.
