The Dow Jones Industrial Average was punched lower and the price of oil spiked as fighting raged on between Russia and Ukraine. Tesla rivals Lucid Motors and Rivian were hammered. American Express was the worst blue-chip performer.
There were some bullish moves worth noting. Energy stocks Northern Oil & Gas, Pembina Pipeline and Energy Transfer tested buy points. Mining stocks Rio Tinto and Sibanye-Stillwater also attempted breakouts.
Volatility was continuing to surge, with the Cboe Volatility Index, or VIX, up 10.5%. Volume was higher on both the New York Stock Exchange and the Nasdaq according to early data.
Meanwhile, the yield on the benchmark 10-year Treasury note retreated to the lowest levels since January. It fell about 11 basis points to 1.73%. Oil was gushing though, with West Texas Intermediate crude climbing 9.5%.
Falling yields and rising energy prices are causing very challenging market conditions.
Ukraine War: Russia Takes Aim At Kyiv
Oil prices were spiking as fighting intensified between Russia and Ukraine.
Ukrainian officials said five people were killed after a Russian missile hit a TV tower in Kyiv. A 40-mile-long tank convoy is closing in on the capital city.
So far, strong resistance has prevented the Russians from making decisive gains there.
The Russian army is also trying to tighten its grip on the country's second-biggest city, Kharkiv.
Meanwhile, Ukrainian President Volodymyr Zelenskyy received a standing ovation at the EU after he told them in a video call that "Nobody will break us."
He has called on the economic and political union to accept Ukraine as a member, though such a deal appears unlikely.
Nasdaq, Growth Stocks Slapped Lower
The Nasdaq tumbled amid broad weakness, closing down 1.6%. Baidu fared best as it popped 6.8%, while Advanced Micro Devices was among the worst laggards as it fell 7.7%.
The broader S&P 500 also fell 1.6%. Target was the bright spot as it popped 9.8% on earnings. DXC Technology lagged the worst, falling 11.6%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33293.96 | -598.64 | -1.77 |
| S&P 500 | (0S&P5) | 4306.19 | -67.75 | -1.55 |
| Nasdaq | (0NDQC ) | 13532.46 | -218.94 | -1.59 |
| Russell 2000 | 199.34 | -3.98 | -1.96 | |
| IBD 50 | 37.27 | -0.57 | -1.51 | |
Last Update: 4:08 PM ET 3/1/2022 |
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The S&P sectors were nearly all red. Only energy was making a slight gain. Financials, which were hammered amid falling yields, and materials were the worst performers.
Small caps were shaken the worst by the bears, with the Russell 2000 closing down 2%.
Meanwhile, growth stocks were also mauled. The Innovator IBD 50 ETF, a bellwether for growth stocks, dropped 1.5%.
Dow Jones Today: American Express Stock Slammed
The Dow Jones Industrial Average ended up giving up about 600 points as it fell 1.8%.
American Express fared the worst amid weakness among financials, dropping 8.5%.
It is now dipping toward its 50-day line after tumbling below a 189.13 entry, MarketSmith analysis shows.
Boeing, which declined 5.1%, and JPMorgan Chase, which fell 3.8%, were also noteworthy laggards.
Chevron was the top performer as it jumped 4% amid spiking oil prices. Home Depot was the next best performer with a 1.4% gain.
Tesla Stock Rivals Lucid, Rivian Plunge
Tesla rival Lucid Motors was severely punished after it significantly missed Q4 earnings estimates and cut its production outlook for 2022.
Outlook was perhaps the biggest issue, with the firm forecasting production of 12,000-14,000 vehicles, vs. its earlier projection for 20,000.
"This reflects the extraordinary supply-chain and logistics challenges we've encountered," CEO Peter Rawlinson said in a news release.
Lucid stock closed off lows, but still gave up 13.8%. It lost further ground on the 200-day moving average.
Meanwhile, Rivian was punched 8.4% lower. It was reeling after Wells Fargo analysts reiterated an equal-weight rating amid what is said are too many "near-term headwinds."
These include heightened risk to Q1 delivery expectations and the negative impact of rising interest rates.
Tesla was actually faring much better, giving up 0.7%. It was buoyed Monday by a price-target raise to 450 from 300 by Bernstein.
Tesla stock is a member of the prestigious IBD Leaderboard list of leading growth stocks.
These Energy Stocks Test Buy Points
Northern Oil & Gas is sitting in its buy zone after moving past a cup-with-handle buy point of 25.57.
The relative strength line is moving higher and it is one of the top 2% of stocks in terms of market performance over the past 12 months.
The firm operates in the Bakken and Three Forks areas of the Williston Basin of North Dakota and Montana.
Pembina Pipeline has slipped back below its buy zone after moving above a cup-base entry of 34.83.
The Canadian firm has just seen its relative strength line hit a new high. Earnings are lagging stock performance at the moment.
Energy Transfer came close to passing a cup-with-handle entry of 10.51, missing the mark by a few pennies.
The stock is worth watching to see if it can move above this buy point in coming sessions. Earnings have been spiking in recent quarters.
Rally Attempt Hits Resistance; Fed Chief Powell On Tap
Mining Stocks Pass Entries
Rio Tinto, a U.K. metal ores miner, closed just below its buy zone after moving above an 80.54 cup-with-handle buy point. It ended the session up 1.8%.
The stock carved out its move in heavy volume recently after gaining support at the 50-day line. Rio Tinto boasts a low P-E ratio of 6, a spiking relative strength line and strong earnings performance.
Gold play Sibanye-Stillwater is a hair below its entry after peeking above a long cup-base entry of 19.84. Earnings are due soon, which makes this a highly risky purchase.
Just remember that with the market still in the grip of a correction, any buys carry much more risk.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
