The stock market opened flat but quickly turned south by late morning Friday on the threat of a Russian invasion of Ukraine and nervousness over a Fed rate hike.
The Nasdaq composite fell 1%, the Dow Jones Industrial Average lost 0.6% and the S&P 500 fell 0.7%. The small-cap Russell 2000 fell 0.6%. Volume rose on the Nasdaq and NYSE compared with the same time on Thursday.
If the losses hold up, the Nasdaq could enter a “death cross,” where the 50-day moving average closes below its 200-day moving average. Market watchers view that as the spot a shorter-term correction turns into a longer-term downtrend. But the last time that happened was April 16, 2020, when the Nasdaq was just starting a potent run.
The stock market centered its attention on Ukraine, where the threat of large-scale military action remained high and skirmishes were reported.
U.S. Stock Market Today Overview
Last Update: 12:26 PM ET 2/18/2022
Artillery, tank and mortar exchanges picked up Friday in the cease-fire area separating the Ukraine-controlled portion of Donetsk and Luhansk from Russian-held areas, The Wall Street Journal reported. U.S. Secretary of State Antony Blinken proposed a meeting with his Russian counterpart next week that he said could lead to a summit of leaders.
Fed Watchers Keep Close Eye On Treasury Yields
The price of U.S. crude oil fell 0.6% to $91.16 a barrel.
Meanwhile, Fed reserve rate hike watchers kept a keen eye on interest rates and whether or not we will have a 0.5% rate hike next month. The 10-year Treasury yield dropped to around 1.93% Friday morning.
Deere & Co. (DE) reported better-than-expected January-quarter earnings and raised full-year guidance. Yet, the agricultural equipment maker’s stock reversed lower and was off 2.8% at midday. Shares are 6% below the 388.20 buy point of last week’s breakout and seeking support at the 50-day moving average.
A labor strike in October and November added to the company’s supply chain problems. Deere earnings came in at $2.92 a share with revenue of $9.57 billion. Revenue was above expectations.
Antero Resources (AR) shot up 4% and broke past its 22.13 entry point after the company reported earnings after the close on Thursday. The oil and gas company missed FactSet analyst estimates on earnings but it beat sales estimates.
Roku, Shake Shack Trade Lower After Earnings
Anthem (ANTM) is showing strength against the weak market with a Relative Strength Rating of 93. Anthem was added to the Leaderboard list on Feb. 8 after it beat earnings estimates and cleared an early entry point of 461.64 off a base-on-base formation. It earned $5.14 per share for the fourth quarter, topping analyst estimates of $5.12.
Roku (ROKU) shares plummeted 24% to the lowest point since June 2020. Late Thursday, the video streaming platform company missed fourth-quarter estimates and guided lower for the current quarter and full year. Roku blamed hardware shortages.
Shake Shack (SHAK) plunged 5% after the hamburger chain posted a smaller-than-expected Q4 loss. But its current quarter $196 million-$201.4 million sales forecast was below views. Same-store sales estimates also missed expectations.
The Innovator IBD 50 ETF (FFTY) fell 0.6%.
Follow Michael Molinski on Twitter @IMmolinski
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