The stock market traded mixed Monday morning after enjoying its best week since November 2020. Defense, metals and oil stocks led gains as Russia's attack on Ukraine continued. Boeing shares slid after a plane crash in China.
The Nasdaq composite was flat. The S&P 500 gained 0.2%. Volume fell on the Nasdaq and NYSE compared with the same time on Friday. The Russell 2000 index of small cap stocks was down 0.4%.
The Dow Jones Industrial Average gave back 0.5%.
Most S&P sectors rose, led by energy. Energy Select Sector SPDR rose 3% to extend a rebound. The materials sector, which includes metals stocks, rose 0.6%. Technology, consumer discretionary and internet stocks lagged.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34562.46 | -192.47 | -0.55 |
| S&P 500 | (0S&P5) | 4467.53 | +4.41 | +0.10 |
| Nasdaq | (0NDQC ) | 13898.73 | +4.89 | +0.04 |
| Russell 2000 | 206.36 | -0.91 | -0.44 | |
| IBD 50 | 39.11 | +0.27 | +0.70 | |
Last Update: 12:04 PM ET 3/21/2022 |
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Oil Climbs; Defense, Metals Stocks Gain
The price of U.S. crude oil jumped 4.8% to $109.80 a barrel. The escalation of the war in Ukraine caused energy, metals and defense stocks to rise. Among them were Lockheed Martin, Northrop Grumman and L3Harris on the aerospace side. L3Harris was in a buy range after passing a buy point of 246.18 on Feb. 28.
One big exception among aerospace companies was Boeing, which slid after 5.5% in heavy trading after a 737-800 plane operated by China Eastern Airlines crashed into a mountain area of the Guangxi region. There was no immediate word on casualties. The plane was carrying 132 people. Broadcast footage showed smoke from the crash site.
The plane is not the 737-Max model that was grounded for about two years after two deadly crashes. The stock this month had been rebounding from a November 2020 low.
Russia stepped up its attack of Ukraine over the weekend. On Monday, Ukraine rejected Russia's demand to surrender the port city of Mariupol.
Metals stocks were big performers. Steelmaker Cleveland-Cliffs made a new high. Nucor shot up 5%, although last week it warned of weakening steel prices. Steel Dynamics reached profit-taking range as it gained another 2% Monday morning. U.S. Steel soared 5%.
Buffett Buys Alleghany
Fertilizer companies also gained as sanctions on Russia cut into the global supply of fertilizers. Russia, and to a lesser extent Ukraine, are major exporters of fertilizers. Intrepid Potash soared 14% Monday.
The stock has not yet formed a new base and is extended from a February breakout.
Berkshire Hathaway rose 2.4% after the company announced it agreed to acquire insurer Alleghany in a deal valued at $11.6 billion. Berkshire — billionaire Warren Buffett's investment firm — said it is paying $848.02 a share in cash. That's a 25% premium to Alleghany's closing price on Friday.
Shares of Alleghany soared 25% in huge volume.
Innovator IBD 50 ETF added 0.7%. Energy, shipping and cyclical stocks led the IBD 50.
Greek shipping company Costamere is in buy range after it cleared the 16.75 buy point of a cup with handle on Friday. The buy zone goes to 17.59.
Tesla rose 3.7%.
Last week, the Nasdaq and S&P 500 made their best gains since November 2020. The Nasdaq shot up 8.2% while the S&P 500 surged 6.2%. Both indexes made follow-through rally confirmations during the week, which changed IBD's market outlook to "confirmed uptrend."
Follow Michael Molinski on Twitter @IMmolinski
