The stock market traded lower in early afternoon trading as the threat of an expanded war in Ukraine escalated in spite of peace talks. Aerospace and defense stocks jumped.
X
The S&P 500 fell 0.6%, and the Nasdaq composite lost 0.6%. The Dow Jones Industrial Average lost 0.8%. The small cap Russell 2000 gained 0.2%.
Volume rose on the NYSE and Nasdaq compared with the same time on Friday.
Most S&P sectors fell, with Financial Select Sector SPDR down more than 1.7%. But the SPDR S&P Aerospace & Defense ETF (XAR) jumped more than 4%, on pace for a three-day win streak.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33766.14 | -292.61 | -0.86 |
| S&P 500 | (0S&P5) | 4356.71 | -27.94 | -0.64 |
| Nasdaq | (0NDQC ) | 13694.92 | +0.30 | +0.00 |
| Russell 2000 | (IWM) | 202.96 | +0.46 | +0.23 |
| IBD 50 | (FFTY) | 37.65 | +0.07 | +0.19 |
| Last Update: 1:14 PM ET 2/28/2022 | ||||
Aerospace Stocks Soar On Threat Of Expanded War
Defense stocks posted sharp gains as Russia-Ukraine fighting continues. L3Harris Technologies (LHX) soared 6.5% and broke past its buy point of 246.18. Its stock had its Relative Strength (RS) Rating upgraded from 80 to 87 Friday.
Northrop Grumman (NOC) jumped past the 409.07 buy point of a flat base in heavy volume. Shares leapt 5.4%. The stock is extended from the buy zone.
Lockheed (LMT) gained 4.5%. Raytheon (RTX) jumped 4%.
On Monday, representatives from Ukraine and Russia met on peace talks while heavy fighting continued. Russia’s invasion appears to have stalled, as Ukrainians continue to defend major cities.
U.S. crude prices jumped 4.8% to $96 a barrel. While stocks and commodities react to the war in Ukraine, the conflict comes at a time when the Federal Reserve is trying to put down inflation. The yield on the 10-year Treasury note slid 9 basis points to 1.87%.
The war complicates the global economy on multiple fronts, as the West fights back with economic sanctions. Russian President Vladimir Putin put his nuclear forces on high alert over the weekend.
(For more industry news, check out Defense & Aerospace Stocks To Watch And Industry News.)
Steel Stocks Seen As benefiting From War In Ukraine
Steel Dynamics (STLD) broke into its buy range Monday, soaring 2.9% past its buy point 68.27 of a double-bottom base. On Friday, it followed several steel producers such as U.S. Steel (X) and Nucor (NUE), as their shares shot up because steel benefited from Russia’s attack on Ukraine. STLD is ranked No. 1 in IBD’s steel producers group, which ranks 40th out of 197 industry groups.
Among other big movers, Teladoc (TDOC) shot up more than 7% after the company said its online health care services will be available on Amazon.com‘s (AMZN) Alexa devices. Amazon.com stock eased 0.5%. Teladoc peaked a year ago and had fallen as much as 81% before today’s Alexa news.
Financial Stocks Slide
Dow financial components JPMorgan Chase (JPM) and Goldman Sachs (GS) posted losses of more than 2%.
Aurinia Pharmaceuticals (AUPH) topped Wall Street’s fourth-quarter expectations Monday, but AUPH stock plummeted 26% on lackluster guidance for its lupus treatment, Lupkynis.
Among major stocks, Microsoft (MSFT) and Tesla (TSLA) face resistance at the 200-day moving average. Apple (AAPL) fell 0.5% though it’s now forming a double bottom base with a 176.75 buy point.
Nvidia (NVDA), whose networks suffered a cyberattack Friday, was down 0.7% and holding above the 200-day line.
Innovator IBD 50 ETF (FFTY) gained 0.2%.
Follow Michael Molinski on Twitter @IMmolinski
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The post Stock Market Slides On Fears Of Expanded War In Ukraine; Defense Stocks Climb appeared first on Investor’s Business Daily.
