The stock market erased earlier gains Thursday at midday as Russia-Ukraine peace talks began in Belarus despite Russia continuing its attack.
The Nasdaq composite fell 1%. The S&P 500 was down 0.3% and the Dow Jones Industrial Average lost 0.2%. Small caps went south, as the Russell 2000 slid 1%.
Volume fell on the NYSE and Nasdaq compared with the same time on Wednesday.
The price of U.S. crude oil eased 0.1% to $110 a barrel after topping $116 earlier today. Energy Select Sector SPDR reversed higher to a gain of 0.1%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33811.81 | -79.54 | -0.23 |
| S&P 500 | (0S&P5) | 4372.00 | -14.54 | -0.33 |
| Nasdaq | (0NDQC ) | 13616.85 | -135.17 | -0.98 |
| Russell 2000 | 202.01 | -2.23 | -1.09 | |
| IBD 50 | 38.12 | -0.14 | -0.37 | |
Last Update: 12:08 PM ET 3/3/2022 |
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In Ukraine, Russian forces pressed deeper into Ukraine with an offensive in the southern city of Mariupol while continuing to attack northern cities, The Wall Street Journal reported.
IBD's market outlook remains at "correction," reflecting a high-risk and volatile environment. Investors should avoid making stock purchases for now. But it's also smart to watch for stocks trading near buy points because indexes are attempting to rally.
Meanwhile, Fed Chairman Jerome Powell continues to testify in Congress. On Wednesday, Powell all but assured a quarter-point rate increase at this month's Fed meeting.
Best Buy, Snowflake, Kroger Among Stock Market Movers
Among major movers, Snowflake plummeted 15% after fiscal year revenue guidance merely edged past expectations. The cloud software stock was already below the 50-day and 200-day moving averages.
But consumer electronics retailer Best Buy surged 8% after beating earnings expectations. Best Buy edged above Wall Street's earnings target for the holiday quarter but missed views on sales. It also guided below estimates for the current year. Still, BBY stock surged, helped by a dividend hike and buyback plans. Best Buy shares are on pace for the largest percent increase since May 18, 2020, when it rose 10.9%, according to Dow Jones Market Data.
The Richfield, Minn.-based company earned an adjusted $2.73 a share on sales of $16.37 billion in its fiscal fourth quarter ended Jan. 29. Analysts had expected earnings of $2.72 a share on sales of $16.6 billion, according to FactSet. In the year-earlier period, Best Buy earned $3.48 a share on sales of $16.94 billion. Best Buy's same-store sales slipped 2.3% in the fourth quarter, vs. expectations for a decline of 0.9%.
"(Fourth-quarter) sales of $16.4 billion were impacted by more constrained inventory than expected, including some high-demand holiday items, and the temporary reduction in store hours in January due to Omicron-induced staffing challenges," Chief Executive Corie Barry said in a news release.
Pure Storage surged 17% after the data storage company's January-quarter results beat estimates. The company's revenue outlook also surpassed expectations late Wednesday. The stock is bottoming out after falling 34% during this year's correction. It held above the 200-day average.
Grocery store chain Kroger soared 9% and broke out of a cup base after earnings topped estimates and the company gave a positive outlook. Kroger shares gapped above the 50.25 buy point. The relative strength line was at new highs even before the stock price was, a bullish sign. But the stock market correction still makes new stock buys extra risky.
Defense ETF Close To 10% Gain Since Russia Attacked
Sociedad Quimica y Minera gapped above the 67.60 buy point of a cup-with-handle base in heavy volume. The Chile-based producer of fertilizers and lithium reported a 352% surge in fourth-quarter earnings late Wednesday. Revenue rose 111% to $1.08 billion.
Auto parts maker Holley briefly broke into its buy range before retreating after it missed earnings estimates for its fourth quarter. It is near a 13.74 buy point off a consolidation. Still, its shares were up more than 3% Thursday.
Meanwhile, investors have already posted $69 billion in stock gains on the 33 major defense and aerospace stocks in the largest ETF of its kind, the iShares U.S. Aerospace & Defense ETF, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
The ETF itself is up nearly 10% from Russia's initial Feb. 24 attack on Ukraine. Shares in ITA declined 1.8% Thursday at midday on the promise of peace talks between Russia and Ukraine.
The Innovator IBD 50 ETF fell 0.4%.
In economic news, Jobless claims for the most recent week fell to 215,000 from 233,000 the previous week. The IHS Markit service sector PMI index jumped to 56.5 in February from 51.2 in January and down slightly from the initial estimate of 56.7. The PMI Output Index rose to 55.9 from January's 51.1.
Follow Michael Molinski on Twitter @IMmolinski
