The stock market was mixed Monday morning as global financial markets kept watch on a possible Russian invasion of Ukraine, and as U.S. investors remained concerned about increasing interest rates.
Stock indexes were volatile. The Nasdaq composite rose 0.8%, while the S&P 500 fell 0.3% and the Dow Jones Industrial Average fell 0.5%.
Russia continued to amass military forces around Ukraine, although diplomatic efforts to avoid a war also continued. Over the weekend, President Joe Biden warned Russian President Vladimir Putin that the U.S. and its allies would “impose swift and severe costs” on Russia. German Chancellor Olaf Scholz is traveling to Ukraine on Monday and Russia on Tuesday.
There was some hope for peace Monday morning, after Russia’s Foreign Minister Sergey Lavrov suggested that Moscow should continue talks with Western leaders.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34573.77 | -164.29 | -0.47 |
| S&P 500 | (0S&P5) | 4411.63 | -7.01 | -0.16 |
| Nasdaq | (0NDQC ) | 13890.75 | +99.60 | +0.72 |
| Russell 2000 | (IWM) | 202.08 | +0.70 | +0.35 |
| IBD 50 | (FFTY) | 37.48 | -0.07 | -0.19 |
| Last Update: 12:10 PM ET 2/14/2022 | ||||
Meanwhile, the fear of rising inflation and the Federal Reserve’s reaction to it continued to weigh heavily on the minds of investors. St. Louis Fed President James Bullard told CNBC Monday that “we can’t just plod along sort of meeting by meeting” and need to move more aggressively.
Global Stock Markets Close Down Sharply
In Europe, the German DAX closed down 2% Monday, while the Paris CAC 40 lost 2.3% as both gapped down. The London FTSE 100, which had been holding up better, fell 1.7%.
In Asia, the major indexes had their worst day since Jan. 27. The Nikkei 225 index slid 2.2% as the Tokyo index snapped a three-day win streak. The Shanghai Composite fell 1%. And the Hong Kong Hang Seng Index lost 1.4%.
Small caps, which have less exposure to foreign markets, rose. The Russell 2000 climbed 0.4%.
Volume rose on the NYSE and fell on the Nasdaq compared with the same time on Friday.
U.S. crude prices gained 0.5% to $93.65 a barrel — near the highest levels since 2014. The yield on the 10-year Treasury note climbed to 2.01%, again climbing above the 2% level.
Energy Select Sector SPDR (XLE) fell 2.6% and was the weakest S&P sector ETF.
Advanced Micro Devices (AMD) climbed 3.8% after the chip company announced some top executive moves. CEO Lisa Su was named chair, while John Caldwell becomes lead independent director. Caldwell had been chair since May 2016. AMD also announced that former Xilinx board members Jon Olson and Elizabeth Vanderslice were added to AMD’s board as part of AMD’s acquisition of Xilinx.
Car Rental Companies Surge
Car rental companies surged Monday as ongoing supply chain issues in obtaining automobiles continued to hamper consumers, pushing them to car rentals. Hertz Global (HTZ) gained 3.3% Monday morning.
Avis Budget (CAR) shot up 6%. The company is scheduled to release fourth-quarter earnings after the close Monday. FactSet analysts expect earnings per share of $6.07.
The car rental giant’s shares are still a long way off from early November when the stock skyrocketed more than 300% in a single day, after the company posted blockbuster third-quarter earnings. Once the dust had settled, the shares settled around 300, but today they are still well below that as the company struggles to form a new base.
EV stocks rebounded after trading lower premarket on a report that car sales in China fell for the eighth straight month. The China Passenger Car Association said January sales fell 4.4% from a year ago, and another weak month is expected in February, MarketWatch reported.
China-based electric vehicle maker Nio (NIO) gained more than 1% Monday at midday. Xpeng (XPEV) climbed 1.2%. And Li Auto (LI) rose 1.8%. Tesla (TSLA), which has a large presence in China, climbed more than 4%.
Rivian Automotive (RIVN) shot up 2.4% Monday morning.
Innovator IBD 50 ETF (FFTY) fell 0.1%.
Airbnb (ABNB), Marriott International (MAR), Roblox (RBLX), and ViacomCBS (VIAC) report earnings on Tuesday.
Follow Michael Molinski on Twitter @IMmolinski
YOU MAY ALSO LIKE:
IBD 50 Stocks Offer Broader Range Beyond Cyclicals
2022 Stock Market Forecast Brings Unfamiliar Risks For Investors
Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest
What Is CAN SLIM? If You Want To Find Winning Stocks, Better Know It
IBD Live: Learn And Analyze Growth Stocks With The Pros
The post Stock Market Trades Mixed As Threat Of Russian Invasion Of Ukraine Looms appeared first on Investor’s Business Daily.
