U.S. Stocks Poised to Fall as Russia Continues Ukraine Onslaught - WSJ
By: Joe Wallace and Dave Sebastian (WSJ)
S E E D E D C O N T E N T
U.S. stocks were set to edge lower, as investors weighed the implications of war in Ukraine for individual companies and the economy.
Futures for the S&P 500 fell 0.3% Friday, paring earlier losses, a day after the benchmark index capped a wild trading session by closing 1.5% higher , with growth and technology stocks leading the way. Technology-focused Nasdaq-100 futures lost 0.3% Friday.
Ahead of the bell in New York, Etsy gained 18% after beating estimates in quarterly results . Take-Two Interactive Software rose 3% after Zynga said it expected their merger to close by the end of June. Dish Network rose 3.6% after Chairman Charlie Ergen said a basic fifth-generation mobile service would be ready before a government deadline in June.
Overseas, markets regained some poise after sanctions laid out by President Biden stopped short of the most severe measures investors thought might be on the table. Russia’s Moex stock-market gauge, which endured a historic blow Thursday, rose around 14%. Russia’s ruble edged up 1.7% to trade at 83.15 a dollar, having shed almost 8% Thursday.
The Stoxx Europe 600 rose 2.4%, led by shares of utilities. Japan’s Nikkei 225 rose 2%, and the CSI 300, which comprises the largest stocks listed in Shanghai and Shenzhen, rose 1%, after both fell Thursday. Hong Kong’s Hang Seng Index slipped 0.6%.
In energy markets, futures for Brent crude, the global oil benchmark, edged down 0.5% to $94.98 a barrel, while European natural-gas prices retreated by almost one-fifth after rocketing Thursday. Brent topped $100 a barrel early Thursday before falling back.
Russian forces closed in on the Ukrainian capital of Kyiv and the city came under renewed bombing . Investors are pondering how the fighting, its effect on commodity markets and retaliatory Western sanctions will ripple through a world economy already grappling with elevated inflation and coming interest-rate rises by major central banks.
The U.S. and its allies have laid out stiff restrictions on Russian companies, including major banks, as well as on Russia’s elite and the country’s ability to import goods used in defense and aerospace. The European Union will formally sign off on sanctions Friday that will cut 70% of Russia’s banking system off from international financial markets. Given the scale of Moscow’s attack, investors are preparing for potentially stricter restrictions, for example cutting off Russia from vital international financial infrastructure.
“I do not think that this highly volatile period is already coming to an end,” said Daniel Egger, chief investment officer at St. Gotthard Fund Management. “Right now we have to focus now on what’s happening in Kyiv, how bloody the coming days will be, and I would say definitely the Russian sanctions still can be stepped up.”
Rapid inflation and the prospect of tighter monetary policy were complicating the outlook for some traditional safe-haven assets such as Treasury bonds, the U.S. dollar and gold, said Yung-Yu Ma, chief investment strategist for BMO Wealth Management in the U.S.
In bond markets , the yield on the benchmark U.S. 10-year Treasury note rose to 2.009% from 1.969% Thursday. Yields and prices move inversely. Gold prices slipped 1.1% to $1,906 a troy ounce.
“It looks like the military action in Ukraine could be protracted,” said Mr. Ma, adding that this would make short-term market movement difficult to predict.
Among individual European stocks, some companies that were hammered at the start of Russia’s attack clawed back lost ground. Russian gold producer Polymetal International rose 7.2%. Hungarian budget airline Wizz Air rose 5.8%. German energy companies Uniper and RWE that rely on Russian gas rose about 7% each. Shares of British arms and aerospace company BAE Systems , which has gained on the prospect of higher defense spending, added a further 4.6%.
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It's almost like a return to the 1930's.
Not even close, someone as astute as you claim to be should know better than to jump on futures with their woeful predictions.
Lol, I'm beyond astute. I'm out of the Market until Biden and his kind are out of office.
OMG, the neoliberal rats are running for the hawsers! Who didn't see this coming?
Don't worry, Congressmen are making a run on palladium and nickel so they won't be hurt by any of this. After all, it's the right thing to do.
The Dow is over 700 right now.
Shush!
The word is VOLATILE!
The stock market has been VOLATILE since the pandemic began. It usually is in times of uncertainty.
Volatility is generic to any stock market. It's why the Ferengi and gamblers venerate them.
True.
Well, actually its even somewhat volatile in calm times as well.,If it wasn't it would be difficult to make much money trading. Anyone who knows anything about the market knows that volatility is a given-- that's hardly news!
But the degree of volatility can change tremendously. In fact, there's even a volatility index -- its called the VIX. (And if you want, you can make your own predictions as to what the upcoming Stock Market volatility will be-- and trade the VIX!)
However I believe you're right about what's happened during the Pandemic-- for the most part the VIx has been up. (Although I don't actually follow it nor do I trade it-- I have a different style of investing..
P,S; Although it may seem counter-intuitive, most smart traders made a heck of a lot more money during the pandemic than they normally do..and BTW that icludes yours truly,
So Biden's presidency represents the age of uncertainty?
Pat, I think you have something there.
Welcome back.
Very good.
From Andy Serling (Stock broker turned horse player) :
"I will leave you with this…..someone was blasting We are the World on the subway platform at Aqueduct as we waited for the train. Thanks and have a great night."
Don't be silly, we're talking about the market volatility. Historically it happens when there is uncertainty due to world events or other financial issues, rarely is it due to politics.
I guess I was being silly, but wait...suppose a US president causes many of those events by his own actions?
Investors are swooping up the bargin stock sold by panicked worrywarts. The DOW soared under Biden.
Sad but true, wars we don't pay for help US stocks...
It is notable the gop is cheerleading for US failures.
They are so butthurt Trump lost they disconnected.
Nope!
A common misconception amongst those who know little or nothing about how the market actually works...!
So what are the true facts?
The short answer is: war causes some stocks to rise, and others to plummet.
"Those who know little or nothing about how the market works"? REALLY? Wars have winners and losers who are not necessarily the conflicted parties. I am not going to argue except to note that the Great Depression fell between the wars and WWII is often credited with helping lift the world out of recession. I do have a piece of parchment from a major university with the word "Economics" on it. I personally have done in excess of a billion dollars in business and am a retired investor. Maybe I know some things. Can your insults!
This seed isn't exactly "fake News"-- but it is old news!
In fact I clicked on the linked article-- here's the latest news (about 8 minutes ago):
U.S. Stocks Rally to Finish Turbulent Week
Possibility of Russia-Ukraine talks lifts markets; Russian shares, ruble also jump
Updated Feb. 25, 2022 5:05 pm ET
And... The DOW just had its best day in over a year!