Stock Market Today
The S&P 500 officially is off by more than 10% from its January highs as Russian troops enter Ukraine and world leaders respond with sanctions.Any feelings of relaxation from the long holiday weekend were snuffed out Monday, as the worsening Ukraine-Russia conflict sent the S&P 500 into correction territory for the first time since 2020.
Over the weekend, Russian President Vladimir Putin ordered troops to enter areas of eastern Ukraine – a move that President Joe Biden dubbed an “invasion” and was met with international sanctions.
Among them: Biden prohibited American financial institutions from processing any transactions from large Russian bank VEB and the country’s military bank, Promsvyazbank, while U.K. Prime Minister Boris Johnson said his country’s first round of sanctions would target IS Bank, General Bank and other Russian financials.
Commodities rose – U.S. crude oil prices were up 1.4% to $92.35 per barrel while gold was up 0.4% to an eight-month-high settlement of $1,907.40 per ounce.
Sign up for Kiplinger’s FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.
But stocks declined throughout the session, led lower by the consumer discretionary sector (-2.9%), which saw the likes of Tesla (TSLA, -4.1%) and Best Buy (BBY, -7.3%) suffer sizable declines.
The S&P 500, off 1.0% to 4,304, finally dipped into correction territory (a decline of 10% or more from a peak). The Nasdaq Composite (-1.2% to 13,381) remains in correction, while the Dow Jones Industrial Average (-1.4% to 33,596) would need to decline another 2.0% to mark a 10% drop from its Jan. 3 record high.
YCharts
Other news in the stock market today:
The small-cap Russell 2000 slumped 1.5% to 1,980.Bitcoin was punished, dropping 5.3% from Friday’s levels to $37,925.63 (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)Home Depot (HD) was the worst Dow Jones stock today, shedding 8.9% after earnings. The home improvement retailer reported stronger than anticipated earnings of $3.21 per share and revenue of $35.7 billion in its fourth quarter, but gave a conservative fiscal 2022 outlook to account for rising inflation. Still, CFRA Research analyst Kenneth Leon maintained a Buy rating on HD stock and called its recent pullback “an enhanced buying opportunity.” Kraft Heinz (KHC) was a rare splash of green today, with the stock climbing 5.0% after the food and beverage firm raised its long-term growth targets and reiterated its fiscal 2022 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). “Over the past 18 months, KHC has strengthened its product portfolio, reduced its debt load, and set the foundation for more profitable growth,” writes CFRA Research analyst Arun Sundaram (Buy). “Phase three will look to use technology and data-driven solutions to accelerate the pace of innovation and use resources more effectively.”Tempur Sealy International (TPX) plunged 19.4% after the mattress maker reported earnings. In its fourth quarter, TPX reported adjusted earnings of 88 cents per share on $1.36 billion in revenue, falling short of the 96 cents per share and $1.45 billion expected by analysts. The company also lifted its quarterly dividend by 11.1% to 10 cents per share.What Russia-Ukraine Means for Your PortfolioWhile stocks are facing numerous headwinds this year, military conflict is unlikely to have a lasting effect.
“As devastating as a major conflict could be between Russia and Ukraine, the truth is stocks likely will be able to withstand the geopolitical struggle,” says Ryan Detrick, chief market strategist of LPL Financial, who adds that historically, major geopolitical events are often a “nonevent” for U.S. equities.
But that doesn’t mean there won’t be at least some short-term consequences, as today’s declines clearly signal.
In the short term, for instance, commodities of all types are expected to gain additional ground – a boon for commodity funds such as these energy exchange-traded funds or these gold ETFs.
And you can check out our primer for a wider look at the various ways strategists and analysts see the Russia-Ukraine conflict making itself felt in U.S. portfolios.
Your Guide to Roth Conversions
Special Report
Tax Breaks
Your Guide to Roth ConversionsA Kiplinger Special Report
February 25, 2021
The 22 Best Stocks to Buy for 2022
stocks to buy
The 22 Best Stocks to Buy for 2022A chaotic past two years has taught investors to be ready for anything. Our 22 best stocks to buy for 2022 reflect several possible outcomes for the n…
February 4, 2022
Should You Own Your Home in Your Trust?
estate planning
Should You Own Your Home in Your Trust?Homes are illiquid assets that produce no income and come with ongoing costs for upkeep. Those issues can cause some snags with your trust.
February 8, 2022
Lowe’s (LOW): Can Q4 Earnings Embolden Investors?
stocks
Lowe’s (LOW): Can Q4 Earnings Embolden Investors?Our preview of the upcoming week’s earnings reports includes Lowe’s (LOW), Caesars Entertainment (CZR) and Block (SQ).
February 21, 2022
Stock Market Today (2/18/22): Stocks Drop on Russia-Ukraine, Fed Uncertainty
Stock Market Today
Stock Market Today (2/18/22): Stocks Drop on Russia-Ukraine, Fed UncertaintyToday’s batch of Fed presenters failed to give specifics on the central bank’s rate-hike plans.
February 18, 2022
10 Biggest Losers in the S&P 500 This Year
stocks
10 Biggest Losers in the S&P 500 This YearThe S&P 500 hasn’t yet crossed over into correction territory, but many of its components are in far worse shape.
February 18, 2022
Kiplinger’s Weekly Earnings Calendar
stocks
Kiplinger’s Weekly Earnings CalendarCheck out our earnings calendar for the upcoming week, as well as our previews of the more noteworthy reports.
February 18, 2022