The stock market's losses deepened Tuesday morning as Russia intensified its assault on Ukraine and oil prices topped $100 a barrel. Oil and mining stocks gained. Retailers Target and Kohl's jumped on earnings.
The Nasdaq composite was off 1.1%. The S&P 500 fell 1.5%. The Dow Jones Industrial Average lost 2%. Small caps saw larger losses, with the Russell 2000 down 2%.
Volume rose on the Nasdaq and the NYSE compared with the same time on Monday.
The price of U.S. crude oil jumped more than 8% to $103.81 a barrel. Energy Select Sector SPDR rose to a new high but pared gains to 0.3%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33218.81 | -673.79 | -1.99 |
| S&P 500 | (0S&P5) | 4306.61 | -67.33 | -1.54 |
| Nasdaq | (0NDQC ) | 13565.48 | -185.92 | -1.35 |
| Russell 2000 | 199.21 | -4.11 | -2.02 | |
| IBD 50 | 37.26 | -0.58 | -1.53 | |
Last Update: 11:58 AM ET 3/1/2022 |
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The 10-year Treasury yield fell to 1.71% Tuesday morning and the price of gold rose 1.6% to $1,930 an ounce as investors piled back into bonds and other safe-haven instruments.
Oil, Retail Stocks Lift Stock Market
Both Chevron and Occidental Petroleum are above their respective 20%-25% profit-taking zones.
Chevron emerged from a 113.21 cup-base buy point. Shares rose more than 3.5% Tuesday to hit a new 52-week high.
Occidental shares gained almost 9% on Tuesday. It is extended from a 35.85 buy point of a cup base.
Meanwhile, Russian forces shelled Ukrainian cities as the death toll mounted. Russian forces bombarded Kharkiv — Ukraine's second-largest city — as troops moved closer to the capital Kyiv. Russia warned residents of "precision" bombing attacks on Kyiv. More sanctions were placed against Russia's government and companies. Peace talks ended Monday with no progress, but the two sides plan to resume meetings in the coming days.
Target kicked off a big week of retail earnings with a January-quarter profit that topped expectations, but sales came in light. Target shares soared 11.4%, extending a rebound from a nearly 52-week low.
The stock gapped above a downward-trending 50-day moving average. On Monday, Target said it will offer starting wages of $15 to $24 an hour.
Kohl's rose 3% after the department store chain reported earnings above expectations and offered a strong 2022 forecast. The company also raised its dividend and set a $1 billion share buyback.
Tesla Rival Lucid Plunges on Earnings
In the tech sector, Ambarella plummeted more than 28% after the maker of camera chips late Monday topped January-quarter profit views, but its sales and gross margin guidance for the current quarter missed views.
Lucid Motors plunged more than 17% after the Tesla rival significantly missed fiscal fourth-quarter earnings estimates and slashed its 2022 production outlook. Lucid lost 64 cents a share on revenue of $26.392 billion. Analysts expected Lucid to lose 35 cents a share on revenue of $36.7 million.
Lucid updated its 2022 production guidance. It's now forecasting 12,000-14,000 vehicles, vs. 20,000 earlier.
"This reflects the extraordinary supply chain and logistics challenges we've encountered," CEO Peter Rawlinson said in a release.
Shares in Zoom Video Communications fell 5% Tuesday amid fiscal 2023 guidance that came in well below expectations. January-quarter profit for ZM stock topped estimates.
IBD 50 Outperforms Stock Market
The Innovator IBD 50 ETF fell 1.5%. Mining stocks accounted for much of the loss.
Rio Tinto shares jumped 2.4% and topped the 80.54 buy point of a large cup-with-handle base. Franco-Nevada climbed 2.9% and was back above its 150.74 buy point after dipping below it for several days. Sibanye-Stillwater — a miner of gold, lithium and other metals — rose 3.5% and is nearing a 19.84 buy point.
In economic news, the seasonally adjusted IHS Markit U.S. Manufacturing Purchasing Managers' Index rose to 57.3 in February from 55.5 in January. "Although only modest overall, output rose at a faster pace amid signs of easing supply-chain disruption and the sharpest expansion in new orders since last October," IHS Markit noted.
Follow Michael Molinski on Twitter @IMmolinski
