The Dow Jones Industrial Average plunged Monday as the Ukraine-Russia war sent oil prices higher again. Apple, Amazon and Netflix fell despite bullish analyst calls. Visa and Mastercard dipped after suspending operations in Russia.
A trio of stocks managed to test buy points despite the bearish action. Railroad play CSX, gold play Newmont and National Fuel Gas attempted breakouts.
Volatility was up once again, with the Cboe Volatility Index, or VIX, up around 14%. Volume was running higher on both the New York Stock Exchange and the Nasdaq according to preliminary data, a negative on a down day.
Meanwhile, the yield on the benchmark 10-year Treasury note managed to inch higher. It was up about six basis points to 1.78%. Oil was gushing though, with West Texas Intermediate crude climbing 3.7% to about $120 per barrel.
There are worries that with commodity prices surging due to the war, that could spark a painful recession.
Nasdaq, Growth Stocks Mauled
The Nasdaq fared worst out of the major indexes, closing down 3.6%. Fortinet was lagging most here with a decline of more than 12%.
The S&P 500 was also toiling, falling 3%. PVH fell hard on fears over European exposure, giving up more than 15%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32813.56 | -801.24 | -2.38 |
| S&P 500 | (0S&P5) | 4200.89 | -127.98 | -2.96 |
| Nasdaq | (0NDQC ) | 12830.96 | -482.48 | -3.62 |
| Russell 2000 | 193.82 | -4.84 | -2.44 | |
| IBD 50 | 36.59 | -1.53 | -4.01 | |
Last Update: 4:08 PM ET 3/7/2022 |
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The S&P sectors were nearly all red. Only energy and utilities were in positive territory. Materials and consumer discretionary were the worst performers.
Small caps were actually holding up relatively well, though the Russell 2000 still knifed 1.9% lower.
Growth stocks were being given the stiffest spanking by the bears. The Innovator IBD 50 ETF, a bellwether for growth stocks, plunged 3.6%.
Dow Jones Dives, Chevron Stock Leads Upside
The Dow Jones Industrial Average was being forced lower by the marauding bears. It gave up around 800 points as it fell 2.4%.
Chevron was offering a crumb of comfort, leading the upside with a 2.1% gain.
But the vast majority of components were in the red, with the likes of Nike, which gave up more than 5%, and Boeing, down 6.5%, among the worst losers.
Apple Stock, Amazon, Netflix Struggle Despite This
Bullish analyst calls were not enough to help a trio of FANG stocks move higher.
Apple stock fell 2.4% amid the broad bearish action. It lost ground on its 50-day moving average and a 183.04 consolidation pattern entry, according to MarketSmith analysis.
It dipped despite the fact Bank of America reiterated its buy rating on AAPL stock ahead of the firm's new product launch day Tuesday.
Nevertheless, AAPL stock boasts excellent earnings and price performance overall, and was recently touted by famed investor Warren Buffett, CEO of Berkshire Hathaway.
Amazon failed to get a lift after JPMorgan Securities touted the stock as a top idea. It lost ground on all its major moving averages as it slipped 5.6%.
JPMorgan said it believes Amazon increased its U.S. e-commerce share from 39.2% in 2020 to 41.6% in 2021.
Netflix stock fared relatively better, but still fell 3.2%. It is in the bottom 16% of stocks in terms of price performance over the past 12 months.
It was struggling despite Wells Fargo reiterating an overweight rating on the stock. Wells Fargo urged investors to show patience as the streaming giant chases additional subscribers.
Visa Stock, Mastercard Tumble After This Russia Move
Both Visa stock and Mastercard stock were struggling after it emerged they were suspending operations in Russia.
While shoppers will be able to use cards for purchases within Russia until their expiry dates, they will no longer work abroad or for international payments online.
In addition, cards issued abroad will no longer work at shops or ATMs in Russia.
Visa stock fell 4.8%, losing further ground on the 50-day moving average. Mastercard fell by 5.4%. Both stocks remain mired near the bottom of consolidation patterns.
American Express, which announced similar measures, ceded its 200-day moving average as it fell 8%. This made it the worst Dow Jones stock of the day.
These Stocks Test Buy Points
CSX stock is just below its buy zone after earlier rising above an ideal entry of 38.11.
CSX is tied with Union Pacific for top spot in the rail transport industry group.
Rail stocks popped after reports said hedge fund manager Bill Ackman has built a new stake in Canadian Pacific Railway.
His firm, Pershing Square Capital Management, disclosed in a 13F filing that it had a stake of 2.8 million shares in Canadian Pacific at the end Q4. He has also increased his position since then, a spokesman for the firm confirmed.
Newmont is now extended after breaking past a cup base entry of 75.41 on a weekly chart.
The gold stock has seen its relative strength line roar to new heights. Earnings for that group are considerably lagging stock market performance.
Both CSX stock and Newmont are on the prestigious IBD Leaderboard list of leading stocks.
National Fuel Gas is in a buy zone after passing a cup-base entry of 66.05. Both earnings and market performance are strong for the utilities play.
Investors should remember that, given the market has been in a correction since Feb. 23, any buys carry much more risk.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
