The Dow Jones Industrial Average rallied after President Joe Biden announced new sanctions on Russia over its invasion of Ukraine. Cybersecurity stocks gained as the risk of cyberwarfare rose, with Fortinet, Qualys and Palo Alto Networks among the winners. Tesla staged a stunning comeback while Alibaba fell.
Volatility retreated following the president's speech, with the Cboe Volatility Index, or VIX, down 2.3%. Volume was markedly higher on the New York Stock Exchange and the Nasdaq.
The yield on the benchmark 10-year Treasury note slipped one basis points to 1.96% as bond buying increased. Oil was well off highs for the day. West Texas Intermediate crude had briefly topped $100 per barrel, but was still up 0.8% at nearly $93.
Biden Ramps Up Russia Sanctions, Keeps More In Reserve
President Joe Biden announced new sanctions against Russia following its invasion of Ukraine last night. However, they were not as severe as they could have been.
New measures will target Russian banks as well as elites and their families.
"Putin is the aggressor," Biden said during a White House news conference. "Putin chose this war and now he and his country will bear the consequences."
However, Biden withheld some measures, such as directly sanctioning President Vladimir Putin and stopping Russia from using the Swift payment system.
European nations were against the latter measure. Swift is important as it is used by over 11,000 financial institutions to send secure payment orders. It is vital for moving funds to Russia's oil and gas sector. Europe is heavily reliant on Russia for oil.
The president said disconnecting Russia from Swift is "always an option."
The possibility of cybersecurity strikes against Russia are said to have been tabled, but the president made no mention of moving on this front.
Nasdaq Gains As Tech Stocks Shine
The Nasdaq rallied furiously as it ended the day up 3.3%. Moderna surged nearly 13% on earnings.
The S&P 500 powered from negative territory as it gained 1.5%. Enphase Energy was a winner here, popping almost 13%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33222.88 | +91.12 | +0.28 |
| S&P 500 | (0S&P5) | 4288.65 | +63.15 | +1.49 |
| Nasdaq | (0NDQC ) | 13473.59 | +436.10 | +3.34 |
| Russell 2000 | 197.94 | +4.96 | +2.57 | |
| IBD 50 | 36.58 | +0.88 | +2.46 | |
Last Update: 4:14 PM ET 2/24/2022 |
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The S&P sectors were mixed. Technology, buoyed by cybersecurity stocks, and communication services were the best performers. Financials and consumer staples lagged.
Small-cap bulls managed to fight off the bears, with the Russell 2000 closing up 2.6%.
Growth stocks also sprinted out of negative territory. The Innovator IBD 50 ETF, a bellwether for growth stocks, finished the session up 2.5%.
Dow Jones Rallies, JPMorgan Stock Lags
The Dow Jones Industrial Average made the smallest gain but still staged a bracing turnaround. It closed up 0.3%.
JPMorgan Chase was among the worst performers as it closed the session down 2.8%. It gapped down to consolidation lows earlier in the session.
Merck overtook JPM to end up as the worst performer on the Dow Jones today. It slid about 3.1%.
Salesforce.com fared best as it rose 7.2%. Leaderboard stock Microsoft also did well, rising 5.1%.
Tesla Stock Charges Higher
Tesla stock staged a stunning comeback as it closed the day well in positive territory.
It had plunged around 8% Thursday morning but was one of the big beneficiaries as the stock market fought back.
Tesla ended the day up nearly 5% and wiped out some of its losses from Wednesday's 7% dive. It also snapped a four-day losing streak.
Tesla stock remains rooted below its long-term 200-day line, and there is no proper entry in sight.
TLSA traded as high as 1,243.49 on Nov. 4, but ended Wednesday nearly 36% off that all-time high.
Tesla is a member of the prestigious IBD Leaderboard list of top growth stocks.
These Cybersecurity Stocks Jump
While direct warfare between the West and Russia remains unlikely, cybersecurity stocks rallied amid rising fears of cyberwarfare.
Fortinet stock surged 11.2% as its relative strength line rose. It remains shy of a consolidation-pattern buy point of 371.87, MarketSmith analysis shows.
Israeli security play Check Point Software popped 5.9%. It is now extended past a double-bottom-base buy point of 124.46.
NortonLifeLock rose 2.7% while Qualys snapped a downtrend and pushed back above its 200-day line as it rose 9.1%.
Palo Alto Networks, which is eying a 572.77 buy point, jumped 13.1%. It boasts solid earnings and market performance.
Market Rebounds From Steep Losses, These Stocks Lead; Now What?
Alibaba Stock Loses Ground
Chinese e-commerce giant Alibaba was given a bloody nose amid mixed earnings. But it managed to close well off lows for the day as it fell 0.7%.
Alibaba's earnings per share fell 22% to $2.65 but still came in above views. However, revenue was light amid rising competition.
This was the company's slowest-ever pace of quarterly revenue growth since going public in 2014.
The Chinese e-commerce giant was seeing its sales pressured amid intensifying competition.
Alibaba stock lost further ground on its declining 50-day and 200-day moving averages.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
