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U.S. Stocks Edge Higher Friday, Building on Thursday’s Sharp Reversal

Tiger Newspress2022-02-25

Stocks rose Friday, erasing losses earlier in the session, as investors continued to assess the financial risks stemming from Russia’s invasion of Ukraine.

The Dow Jones Industrial Average added about 130 points, or 0.4%. The S&P 500 inched up 0.3% and the Nasdaq Composite rose 0.1%.

“With a broader Russian invasion of Ukraine underway, the potential geopolitical, economic, and asset implications of the conflict between Russia and the West over Ukraine are once again Top of Mind,” Goldman Sachs’ Allison Nathan said in a note.

Russia is closing inon the Ukrainian capital of Kyiv, according to Ukrainian officials. The capital had been hit by “horrific Russian rocket strikes,” Ukrainian Foreign Minister Dmytro Kuleba said. That came a day after U.S. Secretary of State Antony Blinken told CBS that Kyiv “could well be under siege” soon.

Market sentiment got a boost after multiple reports that Russian President Vladimir Putin is ready to send a delegation to Belarusian capital Minsk for negotiations with Ukraine.

European Union leaders are discussing imposing sanctions on any European assets held by Putin and Foreign Minister Sergey Lavrov, two sources told CNBC’s Silvia Amaro. It is not clear whether Putin or Lavrov own any significant assets in the EU.

On the data front, the core personal consumption expenditures price index, the Federal Reserve’s primary inflation gauge, rose 5.2% from a year ago, the Commerce Department reported Friday. Economists surveyed by Dow Jones expected a 5.1% print.

Government bond yields were slightly higher Friday after falling Thursday. Yields move opposite prices. The benchmark 10-year Treasury note yield on Friday rose above 2%, before easing to the 1.97% level.

Etsy shares rose more than 16% in the premarket after the online marketplace’s quarterly results beat analyst estimates.

Shares of Beyond Meat tumbled more than 8% in early morning trading Friday after the alternative meat producer reported a wider-than-expected loss and shrinking revenue for its fourth quarter.

“Russia invading Ukraine has added to an already tense year, with investors selling first and asking questions later,” said LPL Financial Chief Market Strategist Ryan Detrick. “But it is important to know that past major geopolitical events were usually short-term market issues, especially if the economy was on solid footing.”

The major averages are on track for their third negative week in a row amid escalated geopolitical tensions and worries over monetary policy. The Dow is down 2.5% this week, on pace for its worst weekly performance since Jan. 21. The S&P 500 and the Nasdaq have fallen 1.5% and 0.6% this week, respectively.

All three averages are still in correction territory, or down 10% or more from their respective record highs. The Nasdaq opened Thursday’s session in bear market territory, down more than 20% from its record high in November

“While there may be some additional volatility in the short term, these dislocation events historically present opportunities, as long as recession doesn’t follow,” said Cliff Hodge, CIO at Cornerstone Wealth. “Higher energy prices will also support sticky inflation which may keep pressure on the Fed to stay on course.”

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment94

  • Annalz
    ·2022-02-28
    Pity US stock will be strongetr and stronger 
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  • PC21
    ·2022-02-27
    Conflicts on the economic front.
    Reply
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  • Bryan_lyc
    ·2022-02-27
    D
    Reply
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  • robot1234
    ·2022-02-27
    Can expect more reversal to the means after multia year of QE and zero interest rate. Don't expect to have the cake and eat it too
    Reply
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  • WilliamFish
    ·2022-02-27
    O
    Reply
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  • YJ Lee
    ·2022-02-27
    Ok
    Reply
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  • Tulip123
    ·2022-02-27
    Up 
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  • sega
    ·2022-02-26
    😁
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  • PearlynCSY
    ·2022-02-26
    Basically, it is game over. Biden has chickened out. He doesn't dare to ban Russia from the SWIFT Payment System and only imposes superficial sanctions on a few Russia's entities and individuals. He doesn't dare to ban Russia's oil and gas export to EU. Typical US politicians talking tough but NATO, No Action Talk Only
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  • LEESIMON
    ·2022-02-26
    Please don't 3 days wind 4 days rain again
    Reply
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  • 小虎一飞冲天
    ·2022-02-26
    Like pls.
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  • Rudyy
    ·2022-02-26
    Like
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  • K74
    ·2022-02-26
    Yeah 
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  • WaiSiong81
    ·2022-02-26
    👍
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  • TheEndIsNear
    ·2022-02-26
    Good
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  • ASMH
    ·2022-02-26
    Like 
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  • Tyanak
    ·2022-02-26
    [Smile] 
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  • xuero
    ·2022-02-26
    [Applaud] [Like] [Heart] 
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