U.S. stocks gapped down at the open Tuesday after Russia moved troops into two contested parts of Ukraine and military officials feared a full invasion. But indexes erased most losses, while oil prices surged.
X
The Nasdaq composite opened 1% lower but was off only 0.1% at 10 a.m. ET. The S&P 500 was nearly flat. Volume rose on the NYSE and Nasdaq compared with the same time on Friday. (The stock market closed Monday for Presidents Day.)
The Dow Jones Industrial Average lost 0.4%, after component Home Depot (HD) fell below its 200-day moving average, a level that had kept the stock from further deterioration.
Shares slid nearly 5% in spite of the home improvement chain’s earnings release this morning that topped sales and earnings expectations. Same-store sales rose 8.1% for the January-ended quarter. Home Depot also raised its quarterly dividend by 15% to $1.90 a share.
U.S. Stocks React To Ukraine Crisis
Russian troops poured into the Donbas region of Ukraine after Vladimir Putin recognized two areas as independent states. Western nations condemned the moves and imposed new sanctions on Russia. Germany halted the opening of a pipeline that would allow Russia to bypass Ukraine in exporting natural gas to Europe, The Wall Street Journal reported.
The price of U.S. crude oil rose 2.6% to $93.40 a barrel. Brent crude climbed close to $100 a barrel.
But European indexes were mainly higher. The London FTSE 100 climbed 0.3%, the Paris CAC 40 rose 0.2% and the German DAX was off less than 0.2%.
Asian stocks closed lower, however. The Shanghai Composite fell 1%, the Hong Kong Hang Seng slid 2.7% and the Tokyo Nikkei 225 fell 1.7%.
Digital World Acquisition (DWAC) rallied 9% after former President Donald Trump’s social media app Truth Social launched over the holiday weekend. The app is at the top of the Apple App Store’s list of free-app downloads, despite some glitches at the launch.
Digital World is a special purpose acquisition company, or SPAC, that plans to merge with Trump Media & Technology Group, the owner of Truth Social. Digital World shares reached a four-month high before paring gains.
Innovator IBD 50 ETF (FFTY) fell 0.3% as natural resource stocks such as Sibanye Stillwater (SBSW), Cactus (WHD) and Diamondback Energy (FANG) led the index.
U.S. Stocks Take In Economic Reports
The IHS Markit purchasing managers index, a gauge of private sector output, climbed to 56.0, above forecasts and a two-month high. The services business index climbed to 56.7, while the manufacturing PMI rose to 57.5.
“Both the manufacturing and service sectors recorded stronger expansions in output, with companies linking growth to substantial gains in new business, employees returning from sick leave, increased traveling and greater availability of raw materials,” Markit said in its report. “February data highlighted a sharp and accelerated increase in new business among private sector companies that was the fastest in seven months.”
The S&P CoreLogic Case-Shiller home price index of 20 metropolitan areas surged 18.6% unadjusted in December from a year earlier and 1.1% from the previous month.
“This late season boost was likely due to a demand rush before mortgage rates began their long-anticipated rise. The beginning of that rate increase came over January and into February,” Tomo Networks economist Skylar Olsen said.
YOU MIGHT ALSO LIKE:
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 U.S. Stocks Pare Losses Despite Ukraine Invasion Fears; Trump SPAC Jumps After Social Media App Launches appeared first on Investor’s Business Daily.
