Ukraine Archives - Page 4 of 4

February 26, 2022

Stocks jump as investors eye strong data, Russia’s attacks in Ukraine

Stocks rallied Friday for a second day in a row as traders eyed the latest developments in Russia’s invasion of Ukraine and the world’s response.

The S&P 500 advanced more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, rising further after a 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} jump on Thursday. The Dow and Nasdaq also built on Thursday’s gains to add more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} intraday on Friday. The Dow closed up by more than 800 points, or 2.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, posting its best day of 2022. The Nasdaq ended higher by more than 200 points, or 1.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The move came after new economic data showed U.S. personal spending rose more than expected in January, even accounting for a surge in inflation. Personal consumption expenditures (PCE), a closely watched gauge of inflation, soared by 6.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, or the fastest rate in 40 years.

Stocks moved higher even against the backdrop of Russia’s military attack of Ukraine and Western nation’s sanctions on Russia. Though equities have been sliding and energy commodity prices soaring in recent sessions as investors considered the financial market impacts of the conflict, markets at least temporarily stabilized in absence of further evidence of U.S. economic damage.

“The market is going to overreact to good news and bad. The news [Thursday] morning was sell, sell, sell,” Allan Boomer, Momentum Advisors chief investment officer, told Yahoo Finance Live on Thursday. “And now we analyzed the news … I think what the market has decided is that this Ukraine-Russia [situation] is a tragedy, [but] it’s not necessarily a global event that’s going to cause us to fall into a deep recession.”

“I think the biggest factor right now is the Fed,” he added. “And if anything, this Russian event may make the Fed a bit less hawkish.”

And indeed, market participants have now priced in a much lower probability that Federal Reserve officials will front-load their interest rate hiking cycle and raise rates by 50 basis points at the end of their March meeting. The last time the Fed raised rates by more than 25 basis points in one meeting was in 2000. While such a move would serve as an aggressive shift by the Fed to begin actively reining in inflation, it could also further roil financial markets that have already endured increased volatility this year and that have now also been spooked by the specter of further international conflict.

“This has been the second worst start to the year for U.S. equities since 2000. Yet, these moves are not solely (or even mostly) driven by the Russia/Ukraine tensions,” Seema Shah, Sharing Principal Global Investors chief strategist, wrote in an email. “Equity declines began in January and were, at least initially, driven by inflation concerns and expectations for significantly sharper central bank tightening.”

“Energy prices had been rising steadily throughout the pandemic recovery and in response to lower-than-expected OPEC+ production. Concerns around Federal Reserve balance sheet reduction caused credit spreads to start to gap out in early January,” she added. “The Russia/Ukraine situation is certainly significant—but it has simply compounded these already challenging market conditions.”

Other strategists also suggested that U.S. stocks would trade primarily based on the monetary policy and earnings implications of any impacts of the latest geopolitical tensions.

“The U.S. economy has pretty low exposure directly to Ukraine and the situation with Russia. However, the important thing here is, how does it impact inflation expectations? And that’s really what we’re keeping an eye on,” Anna S. Han, Wells Fargo Securities equity strategist, told Yahoo Finance Live on Thursday. “As inflation becomes a variable for corporates, the potential for it to eat away at earnings, or a potential for it to really steer the Fed to accelerate or decelerate that rate hike cycle — that’s what we’re looking at.”

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4:00 p.m. ET: Dow bas best day of 2022

Here were the main moves in markets as of 4:00 p.m. ET:

S&P 500 (^GSPC): +95.92 (+2.24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,384.62
Dow (^DJI): +834.72 (+2.51{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,058.55
Nasdaq (^IXIC): +221.04 (+1.64{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,694.62
Crude (CL=F): -$0.60 (-0.65{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $92.21 a barrel
Gold (GC=F): -$34.20 (-1.78{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,892.10 per ounce
10-year Treasury (^TNX): +1.7 bps to yield 1.9860{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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1:12 p.m. ET: Ford to pause F-150 production due to chip shortage

Ford (F) said on Friday that it would pause production of its top-selling F-150 pick-up trucks at its Kansas City factory due to the ongoing chip shortage.

The automaker is one of many to suspend or pull back on production due to supply chain-related disruptions. In September, General Motors cut production at a number of North American assembly plants due to chip shortages. Earlier this month, Ford had said it expected sales to drop by the single to low-double-digits due to semiconductor shortages.

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11:50 a.m. ET: Stocks head for back-to-back day of strong gains, Dow adds 600+ points, or 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

The three major stock indexes soared Friday midday, looking past geopolitical tensions and instead focusing on a bevy of solid economic data.

The S&P 500 jumped by 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, with the financials, healthcare and materials sectors leading the way higher. The Dow added more than 600 points, or nearly 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} as Johnson & Johnson, Merck and Amgen outperformed. The Nasdaq added 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

The risk-on mood extended to Bitcoin, which jumped more than 9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to trade above $39,000. Treasury yields rose slightly, and the benchmark 10-year yield added 0.7 basis points to hover around 1.98{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

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10:09 a.m. ET: Pending home sales unexpectedly sink by the most since Feb. 2021 in January

Pending home sales posted the largest decline in nearly one year at the start of 2022, with rising interest rates and tight inventory levels weighing on housing market activity.

Homes under contract to be sold declined by 5.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in January compared to December and fell by 9.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} compared to the same month in 2021, the National Association of Realtors (NAR) said Friday. The monthly dip was the largest since February 2021, and represented a third straight monthly decline.

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10:00 a.m. ET: Consumer sentiment edged up in late Feb., but still hovered at 10-year low: University of Michigan

Consumer sentiment edged up in late February but still marked the lowest level in a decade, according to the University of Michigan’s closely watched monthly index.

The institution’s headline index from its Surveys of Consumers was upwardly revised to 62.8 in the final monthly print, up from the 61.7 previously reported. Still, even with the revision, this was the worst reading in about 10 years. In January, the index had stood at 67.2.

“The loss was still entirely due to a 12.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} decline among households with incomes of $100,000 or more,” Richard Curtin, Surveys of Consumers chief economist, said in a statement. “The February descent resulted from inflationary declines in personal finances, a near universal awareness of rising interest rates, falling confidence in the government’s economic policies, and the most negative long term prospects for the economy in the past decade.”

“The financial harm and growing angst among consumers about rising inflation have pushed nearly nine-in-ten consumers to anticipate interest rate hikes,” he added. “The Fed’s clinging to the transient hypothesis meant missed opportunities to nip inflation at its earliest stages; aggressive actions are now needed to avoid the potential establishment of an inflationary psychology that acts to form a self-fulfilling prophecy.”

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9:31 a.m. ET: S&P 500, Dow open higher

Here’s where stocks were trading Friday morning:

S&P 500 (^GSPC): +12.35 (+0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,301.05
Dow (^DJI): +174.10 (+0.52{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,397.93
Nasdaq (^IXIC): -10.12 (-0.08{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,464.71
Crude (CL=F): -$0.78 (-0.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $92.03 a barrel
Gold (GC=F): -$37.30 (-1.94{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,889.00 per ounce
10-year Treasury (^TNX): +0.9 bps to yield 1.981{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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8:41 a.m. ET: Personal spending rises 2.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in January, exceeding estimates

U.S. consumer spending rose at a faster rate than expected in January even adjusting for price increases, suggesting the biggest part of U.S. economic activity was holding up despite persistent inflationary pressures.

Personal spending rose at a 2.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rate in January, the Bureau of Economic Analysis (BEA) said Friday. This came in well above the 1.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} jump expected, according to Bloomberg consensus data, and helped reverse a 0.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} monthly drop in spending in December.

Real personal spending also exceeded estimates, rising by 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during the month versus the 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase anticipated.

The latest consumer spending data tracked with the Commerce Department’s better-than-expected January retail sales report released earlier this month. That report showed a 3.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise during the month, or well above the 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase expected at the time.

BEA data Friday also showed a flat monthly reading on personal income, following a 0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise in income in December. Still, this was better than the 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} drop anticipated.

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8:36 a.m. ET: PCE inflation jumps by most since 1982 in January

A closely watched measure of inflation soared at the fastest rate in 40 years in January, adding to a bevy of recent data underscoring persistently elevated levels of inflation reverberating throughout the U.S. economy.

The Personal Consumptions Expenditures (PCE) index jumped 6.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in January over last year, the Bureau of Economic Analysis said Friday. This represented the fastest rise since 1982, and topped expectations for a 6.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} year-on-year increase, according to Bloomberg consensus data. In December, PCE rose by 5.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on an annual basis. On a month-over-month basis, the PCE rose 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, matching expectations.

Core PCE, which strips out volatile food and energy prices, rose 5.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over last year in January. This core measure of inflation — and the Federal Reserve’s preferred gauge of underlying price trends — also accelerated from the 4.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} annual rate seen in December. And at 5.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, this marked the fastest increase since 1983.

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7:29 a.m. ET Friday: Stock futures point to slightly lower open

Here’s where stocks were trading ahead of the opening bell:

S&P 500 futures (ES=F): -13 points (-0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,272.00
Dow futures (YM=F): -119 points (-0.36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 33,037.00
Nasdaq futures (NQ=F): -18.25 points (-0.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,948.25
Crude (CL=F): +$0.49 (+0.53{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $93.30 a barrel
Gold (GC=F): -$23.20 (-1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,903.10 per ounce
10-year Treasury (^TNX): +2.3 bps to yield 1.995{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:01 p.m. ET Thursday: Stock futures open lower after rally

Here were the main moves in markets Tuesday evening:

S&P 500 futures (ES=F): -21.5 points (-0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,262.50
Dow futures (YM=F): -145 points (-0.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 33,011.00
Nasdaq futures (NQ=F): -86.75 points (-0.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,879.75

Traders work on the floor of the New York Stock Exchange at the opening bell on February 22 2022, in New York. - Wall Street stocks retreated early on February 22 as Russian President Vladimir Putin's latest escalation of the Ukraine conflict stoked volatility in markets. (Photo by TIMOTHY A. CLARY / AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images) — Traders work on the floor of the New York Stock Exchange at the opening bell on February 22 2022, in New York. – Wall Street stocks retreated early on February 22 as Russian President Vladimir Putin’s latest escalation of the Ukraine conflict stoked volatility in markets. (Photo by TIMOTHY A. CLARY / AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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February 25, 2022

Stocks stage massive comeback after Russian attack on Ukraine roils global markets

U.S. stocks staged a massive reversal Thursday after Wall Street’s main benchmarks each plunged more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in early trading as Russia’s military invasion of Ukraine roiled financial markets around the globe.

[Click here to read how stocks are trading heading into Friday, February 25]

The Nasdaq Composite rebounded from a morning sell-off that saw the index tumble more than 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to close 3.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, or 436 points higher, at 13,473.58 in its best day of 2022. The Dow Jones Industrial Average closed in positive territory after plunging more than 800 points during intraday trading, and the S&P 500 bounced back from a drop of 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to close 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} higher at 4,288.69.

Meanwhile, the 10-year U.S. Treasury nearly erased a 12 basis point drop — its worst since November 2021 — to yield 1.97{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

President Joe Biden in a speech Thursday unveiled another tranche of sanctions against Russia in condemnation of its attack on Ukraine meant to “impose severe cost on the Russian economy, both immediately and over time.” The action builds on a first batch of financial sanctions announced Tuesday targeting Russian financial institutions, sovereign debt and oligarchs in the country.

“Putin is the aggressor,” Biden said in his speech. “Putin chose this war, and now he and his country will bear the consequences.”

European allies acted in lockstep to punish Moscow for its provocation. U.K. Prime Minister Boris Johnson unveiled Britain’s largest-ever package of sanctions against Russian banks, members of President Vladimir Putin’s closest circle and wealthy Russians who frequent London. Meanwhile, Germany halted approval of the Nord Stream 2 natural gas pipeline that would have deepened western Europe’s energy link to Russia, the world’s largest natural gas exporter.

“Putin knew these were going to be coming,” CSIS International Security Program senior adviser Mark Cancian told Yahoo Finance Live. “He took his move anyway, so it’s unlikely that they will deter him.”

Volatility across global equities prompted investors to buy up safe-haven plays amid a broader risk-off trade worldwide earlier in the day. However, gold futures erased 3.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} gain to drop as much as 1.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} into close. WTI crude oil came close to wiping out a 9.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} advance after jumping to over $100 per barrel for the first time since July 2014

“The global financial markets have entered risk-off mode, as the S&P 500 Index officially entered correction territory, with safe haven bids for U.S. Treasuries, the dollar, and gold,” Comerica Wealth Management Chief Investment Officer John Lynch wrote in a note.

In the U.S., the conflict creates an added headwind for investors already grappling with a hawkish shift in Federal Reserve policy to intervene more aggressively in mitigating inflationary pressures. The war between Russia and Ukraine threatens to exacerbate already surging prices and spur other economic disruptions that could complicate the Fed’s policy-making choices.

Russian President Vladimir Putin takes part in a wreath laying ceremony at the Tomb of the Unknown Soldier by the Kremlin Wall on the Defender of the Fatherland Day in Moscow, Russia February 23, 2022. Sputnik/Aleksey Nikolskyi/Kremlin via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. — Russian President Vladimir Putin takes part in a wreath laying ceremony at the Tomb of the Unknown Soldier by the Kremlin Wall on the Defender of the Fatherland Day in Moscow, Russia February 23, 2022. Sputnik/Aleksey Nikolskyi/Kremlin via REUTERS ATTENTION EDITORS – THIS IMAGE WAS PROVIDED BY A THIRD PARTY.

“Energy prices have surged and the threat of a supply shock in oil places further burdens on discretionary consumption, possibly weighing on growth and complicating the Federal Reserve’s plans to combat inflation by raising interest rates,” Lynch wrote. “A 50-basis point move at the March meeting now seems unlikely.

Many strategists have argued that despite the weight of geopolitical turmoil on equities, the risk-off mood among traders stems primarily from worries around interest rate hikes.

“So far, it looks like Ukraine is not the reason for the drop, despite the fears,” Commonwealth Financial Network Chief Investment Officer Brad McMillan said in a note.

“But what has pulled the markets down, if not the Ukraine crisis?” McMillan wrote. “The most likely candidate—one which makes both fundamental and mathematical sense — is higher interest rates”

Brad McMillan points out that since the start of the year, the 10-Year U.S. Treasury yield is up from 1.63{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 1.97{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at an increase of 34 basis points, or 21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Typically, higher yields mean lower valuation, pushing the forward price/earnings ratio for the S&P 500 from roughly 22.35 at the end of 2021 to an estimated 19.1, a 15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} decline.

“After adjusting for earnings beats this quarter, that drop in valuations pretty much explains the drop in the market, and that rationale doesn’t leave much, if any, room for worries about Ukraine,” McMillan noted. “Wall Street, then, seems to be much more worried about Fed Chairman Jay Powell than Vladimir Putin, at least at the moment.”

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4:00 p.m. ET: US stocks stage massive comeback to cap volatile session

Here were the main moves in markets as of close on Thursday:

S&P 500 (^GSPC): +63.15 (+1.49{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,288.65
Dow (^DJI): +91.12 (+0.28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,222.88
Nasdaq (^IXIC): 13,473.58 to
Crude (CL=F): +$1.18 (+1.28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $93.28 a barrel
Gold (GC=F): -$13.00 (-0.68{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,897.40 per ounce
10-year Treasury (^TNX): -0.8 bps to yield 1.9690{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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3:07 p.m. ET: SEC launches investigation into Elon Musk and brother’s stock sales

The Securities and Exchange Commission has initiated a probe into whether stock sales by Tesla Inc. (TSLA) Chief Executive Elon Musk and his brother violated insider trading rules, according to a report by the Wall Street Journal that cited people familiar with the matter.

The watchdog’s investigation began last year after the Tesla leader’s brother Kimbal Musk sold $108 million worth of company shares the day before Elon Musk tweeted a poll asking whether he should sell 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of his stake in Tesla.

Elon framed the potential sale as a way to cover taxes he would owe if lawmakers imposed new taxes on unrealized capital gains. Musk began selling billions of dollars worth of Tesla shares in the days following his tweet.

Elon Musk pauses and looks down as he speaks during a press conference at SpaceX's Starbase facility near Boca Chica Village in South Texas on February 10, 2022. - Billionaire entrepreneur Elon Musk delivered an eagerly-awaited update on SpaceX's Starship, a prototype rocket the company is developing for crewed interplanetary exploration. (Photo by JIM WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images) — Elon Musk pauses and looks down as he speaks during a press conference at SpaceX’s Starbase facility near Boca Chica Village in South Texas on February 10, 2022. – Billionaire entrepreneur Elon Musk delivered an eagerly-awaited update on SpaceX’s Starship, a prototype rocket the company is developing for crewed interplanetary exploration. (Photo by JIM WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images)

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1:45 p.m. ET: UK reveals new package of sanctions to reprimand Russian aggression

Prime Minister Boris Johnson unveiled Britain’s largest-ever package of sanctions against Russia as the West responds to the Kremlin’s invasion of Ukraine.

The sanctions target banks, members of President Vladimir Putin’s closest circle and wealthy Russians who frequent London.

“This hideous and barbarous venture of Vladimir Putin must end in failure,” Johnson told parliament Thursday. “For our part today, the UK is announcing the largest and most severe package of economic sanctions that Russia has ever seen.”

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1:18 p.m. ET: President Biden warns of “devastating packages of sanctions” against Russia

President Joe Biden is expected to unveil new sanctions against Russia on Thursday after Moscow launched a full-scale military attack on Ukraine, triggering condemnation and financial penalties from the United States and European allies.

The president is scheduled to announce the new measures at 1:30 p.m. ET, according to the White House.

Biden met with G7 allies Thursday to plan measures against Russia after the Kremlin initiated what the president deemed “a premeditated war” against Ukraine.

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12:47 p.m. ET: Mortgage rates fall slightly lower after nearing 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Mortgage rates slipped this week as U.S. Treasuries were weighed down by Russia’s invasion of Ukraine.

The rate on the average 30-year fixed home mortgage fell to 3.89{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, down from 3.92{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} a week ago, according to Freddie Mac. A year ago, 30-year loans averaged 2.97{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

Mortgage rates have surged roughly 84 basis points since December, leading to a decline in applications for home lending.

“Even with this week’s decline, mortgage rates have increased more than a full percentage over the last six months,” Freddie Mac chief economist Sam Khater said. “Overall economic growth remains strong, but rising inflation is already impacting consumer sentiment, which has declined in recent months. As we enter the spring homebuying season with higher mortgage rates and continued low inventory, we expect home price growth to remain firm before cooling off later this year.”

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11:27 a.m. ET: Stocks claw back from morning sell-off to turn mixed

Here were the main moves in markets as of 11:27 a.m. ET:

S&P 500 (^GSPC): -40.03 (-0.95{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,185.47
Dow (^DJI): -588.72 (-1.78{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,543.04
Nasdaq (^IXIC): -6.11 (-0.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,031.38
Crude (CL=F): +$5.56 (+6.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $97.66 a barrel
Gold (GC=F): +$17.00 (+0.89{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,927.40 per ounce
10-year Treasury (^TNX): -3.1 bps to yield 1.9460{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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11:16 a.m. ET: U.S. new home sales drop in January as prices charge higher

New U.S. single-family home sales posted a marginally higher-than-expected decline last month, likely due to rising mortgage rates and higher prices.

The Commerce Department said new home sales fell 4.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to a seasonally adjusted annual rate of 801,000 units in January. Meanwhile, December’s sales pace was upwardly revised to 839,000 units from the 811,000 units initially reported.

Economists surveyed by Bloomberg projected a print of 802,000. Drops in sales occurred mainly in the Midwest, Northeast and the South, while increasing in the western part of the country.

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10:55 a.m. ET: Russian stocks erase $200 billion in market value

The sell-off in Russian stocks Thursday following its military invasion of Ukraine marked the third-worst plunge in market history in local currency terms as, according to Bloomberg data.

The benchmark MOEX Russia Index traded 38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} lower as of 5:28 p.m. in Moscow, wiping out more than $200 billion in shareholder assets as Western leaders condemned the Kremlin and vowed to take action against the country.

According to Bloomberg’s analysis of historical figures, this is the first time since 1987 that such a large selloff has hit a market bigger than $50 billion.

A woman walks past a currency exchange office in central Moscow on February 24, 2022. - Russia's central bank said Thursday in would intervene as the ruble tumbled to a record low and the Moscow Stock Exchange reopened down 14 percent after Moscow launched a military attack on Ukraine, as Russian President Vladimir Putin announced a military operation in Ukraine on Thursday with explosions heard soon after across the country and its foreign minister warning a — A woman walks past a currency exchange office in central Moscow on February 24, 2022. – Russia’s central bank said Thursday in would intervene as the ruble tumbled to a record low and the Moscow Stock Exchange reopened down 14 percent after Moscow launched a military attack on Ukraine, as Russian President Vladimir Putin announced a military operation in Ukraine on Thursday with explosions heard soon after across the country and its foreign minister warning a “full-scale invasion” was underway. (Photo by Alexander NEMENOV / AFP) (Photo by ALEXANDER NEMENOV/AFP via Getty Images)

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9:30 a.m. ET: Russian military attack roils equity markets across the globe

Here’s how U.S. stocks fared at Thursday’s open:

S&P 500 (^GSPC): -107.90 (-2.55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,117.60
Dow (^DJI): -808.48 (-2.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,323.28
Nasdaq (^IXIC): -344.03 (-2.57{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,037.49
Crude (CL=F): +$7.00 (+7.60{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $99.10 a barrel
Gold (GC=F): +$43.60 (+2.28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,954.00 per ounce
10-year Treasury (^TNX): -8.5 bps to yield 1.8920{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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8:38 a.m. ET: Jobless claims renew decline after uptick in prior read

First-time unemployment filings dipped in the latest weekly data, resuming a recent downward trend in jobless claims after a temporary spike.

The Labor Department most recent weekly jobless claims report showed 232,000 Americans filed for unemployment in the week ended Feb 19., down from a revised 249,000 during the prior period. Economists surveyed by Bloomberg projected a read of 235,000, according to consensus data.

Prior to the latest figure, jobless claims ticked up slightly after a consistent decline that signaled Omicron-related pressures on the labor market were beginning to abate following a temporary surge in mid-January to a print of nearly 300,000.

“Ongoing issues with labor supply has led companies to increase retention rates, which has contributed to the low level of jobless claims,” Bank of America economists wrote in a note published Friday. “We expect this to persist over the course of the year.”

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7:00 a.m. ET: Contracts on S&P 500, Dow, and Nasdaq erase more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets in pre-market trading Thursday:

S&P 500 futures (ES=F): -91.75 points (-2.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,130.25
Dow futures (YM=F): -741 points (-2.24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 32,325.00
Nasdaq futures (NQ=F): -372.50 points (-2.76{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,135.00
Crude (CL=F): +$7.78 (+8.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $99.88 a barrel
Gold (GC=F): +$52.70 (+2.76{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,963.10 per ounce
10-year Treasury (^TNX): +2.9 bps to yield 1.9770{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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10:57 p.m. ET Wednesday: Dow futures plunge more than 700 points after Russia announces troops to enter Ukraine

Here were the main moves in markets as of 11:02 p.m. ET:

S&P 500 futures (ES=F): -87.75 points (2.08{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,134.25
Dow futures (YM=F): -709.00 points (-2.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 32,357.00
Nasdaq futures (NQ=F): -340.25 points (-2.52{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,167.25
Crude (CL=F): +$2.65 (+2.88{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $94.75 a barrel

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6:00 p.m. ET Wednesday: Futures open flat after S&P 500, Dow and Nasdaq notch fresh 2022 lows

Here were the main moves in markets in extended trading Wednesday:

S&P 500 futures (ES=F): +0.50 points (+0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,222.50
Dow futures (YM=F): +23.00 points (+0.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 33,089.00
Nasdaq futures (NQ=F): +2.75 points (+0.02{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,510.25
Crude (CL=F): +$0.56 (+0.61{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $92.66 a barrel
Gold (GC=F): +$1.40 (+0.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,911.80 per ounce
10-year Treasury (^TNX): +2.9 bps to yield 1.9770{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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February 21, 2022

Asian Shares Mostly Lower as Investors Eye Ukraine Crisis | Business News

By ELAINE KURTENBACH, AP Company Author

BANGKOK (AP) — Asian shares ended up generally lower Monday following a retreat on Wall Avenue, as buyers watched for developments in Ukraine immediately after Russia rescinded before pledges to pull tens of thousands of its troops away from Ukraine’s northern border.

Tokyo, Seoul, Hong Kong and Shanghai declined although Sydney superior.

The White Dwelling explained President Joe Biden experienced agreed “in principle” to conference with Russian President Vladimir Putin if he refrains from launching an assault that U.S. officials say seems more and more possible.

Russia’s conclusion extended military workout routines that introduced an estimated 30,000 Russian forces to Belarus, Ukraine’s northern neighbor. They experienced been owing to conclusion Sunday. The troops are amid some 150,000 deployed along Ukraine’s borders, alongside with tanks, warplanes, artillery and other war materiel.

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The worry that Russian troops could descend on the Ukrainian cash, Kyiv, a city of about 3 million individuals fewer than a 3-hour push absent, has extra to uncertainties for buyers previously jittery more than central financial institution methods to combat inflation.

Russia is a major vitality producer and a navy conflict also could disrupt power materials and make for incredibly unstable vitality costs.

Markets are on “tenterhooks,” Mizuho Bank stated in a commentary. But it additional, “relief rallies surface to be emerging drawing comfort and ease from Presidents Biden and Putin owning ‘accepted the principle’ of a summit conditional upon Russia not invading Ukraine.”

Tokyo’s Nikkei 225 index lost .7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 26,926.01, while the Hold Seng in Hong Kong get rid of .6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 24,194.64. In Seoul, the Kospi gave up .4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 2,733.36 and the Shanghai Composite index fell .3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 3,479.07.

Australia’s S&P/ASX 200 gained .2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 7,239.30 as the place organized to reopen its borders to much more international vacation soon after practically two years of currently being largely sequestered owing to the pandemic.

Vaccinated vacationers have been greeted at Sydney’s airport by jubilant nicely-wishers waving toy koalas and preferred Australian meals like Tim Tams chocolate cookies and jars of Vegemite unfold.

Outbreaks of coronavirus fueled by the remarkably contagious omicron variant are also a fear. A preliminary reading through on manufacturing facility information for Japan on Monday confirmed a sharp drop in the producing getting manager’s index, to 52.9 from 55.4 on a -100 scale the place readings earlier mentioned 50 indicate expansion.

But analysts explained they expect exercise to rebound as the newest wave of bacterial infections subsides.

In Australia, shares in AGL, the country’s most important energy generator, jumped just about 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} soon after it stated it had rejected an 8 billion Australian dollar ($5.8 billion) takeover bid from tech billionaire Mike Cannon-Brookes and Canadian investment agency Brookfield.

Shares in application corporation Atlassian, established by Cannon-Brookes, fell just about 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

On Friday, stocks capped a week of volatile investing on Wall Avenue with a broad offer-off.

The S&P 500 shed .7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 4,348.87 while the Dow Jones Industrial Typical also slipped .7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, to 34,079.18. The Nasdaq composite bore the brunt of the selling, skidding 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 12,548.07.

Tiny firm stocks also fell, with the Russell 2000 index down .9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 2,009.33.

Treasury yields fell Friday, as buyers shifted funds into the basic safety of U.S. bonds. The yield on the 10-yr Treasury, which has an effect on fees on mortgages and other buyer financial loans, was regular at 1.93{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} early Monday.

Markets have been strike by worries more than how firms will cope with inflation at decades-significant amounts in lots of nations around the world, and around no matter whether individuals may pull again on expending to cope with higher prices for most things.

Wall Avenue is searching ahead to determine how markets will respond to a extra aggressive financial policy from the U.S. Federal Reserve as it begins tightening following two decades of extremely-minimal fascination charges and other supportive steps.

In other buying and selling Monday, U.S. benchmark crude oil missing 50 cents to $89.71 per barrel in digital trading on the New York Mercantile Trade. It received 17 cents to $90.21 on Friday.

Brent crude, the intercontinental pricing standard, gave up 37 cents to $93.17 per barrel.

The U.S. dollar slipped to 114.94 Japanese yen from 115.12 yen late Friday. The euro rose to $1.1363 from $1.1324.

December 3, 2021

Tensions Grow Over Ukraine With the Trading of Threats | Business News

By ELLEN KNICKMEYER and VLADIMIR ISACHENKOV, Associated Press

WASHINGTON (AP) — U.S. Secretary of State Antony Blinken met face-to-face with his Russian counterpart on Thursday to demand Russia pull back troops from the border with Ukraine, as tensions and suspicions grow in a confrontation over Ukraine’s increasingly close ties with NATO and the West.

Russia on one side and Ukraine, the U.S. and its NATO allies on the other traded fresh accusations and threats. The West, fearing that Moscow could invade Ukraine, threatened the Kremlin with the toughest sanctions yet if it launches an attack. Russia, seeing new U.S. and European support for Ukraine’s military, sternly warned that any presence of NATO troops and weapons on Ukrainian soil represents a “red line.”

Fears that Russia would invade its neighbor or seek to undermine the government of Ukrainian President Volodymyr Zelenskyy have dominated Blinken’s travels this week to meet with European allies.

Blinken and Russian Foreign Minister Sergey Lavrov met Thursday on the sidelines of a ministerial meeting of the Organization for Security and Cooperation in Europe in Stockholm, Sweden.

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“The United States and our allies and partners are deeply concerned by evidence that Russia has made plans for significant aggressive moves against Ukraine, including efforts to destabilize Ukraine from within and large-scale military operations,” Blinken told reporters.

During his meeting with Blinken, Lavrov charged that the West was “playing with fire” by denying Russia a say in any further NATO expansion into countries of the former Soviet Union. Zelenskyy has pushed for Ukraine to join the alliance, which holds out the promise of membership but hasn’t set a a timeline.

“I want to make it crystal clear: Turning our neighbors into a bridgehead for confrontation with Russia, the deployment of NATO forces in the regions strategically important for our security, is categorically unacceptable,” Lavrov said he told the OSCE meeting.

The United States and its European allies have struggled to warn Russia off any military action and reaffirm support for Ukraine without moving so forcefully as to give Russian President Vladimir Putin a pretext to invade.

American officials and their allies acknowledge the uncertainties, including whether Putin is prepared to invade Ukraine or is maneuvering to bring President Joe Biden into one-on-one talks on security concessions.

Putin said Wednesday that Moscow would seek Western guarantees precluding any further NATO expansion and deployment of its weapons near Russia’s borders. Lavrov followed up on Putin’s call for a new security arrangement, stating that reaching an agreement on a set of “long-term and legally binding security guarantees is imperative to prevent sliding into a confrontational scenario.”

Alexander Vershbow, a former U.S. ambassador to Russia and former deputy secretary general of NATO, said he sees little or no prospect of the U.S. or NATO providing Putin with such guarantees. “He’s simply not going to get” an agreement to rule out further NATO expansion, Vershbow told The Associated Press.

Vershbow also ruled out the U.S. or NATO agreeing to halt the kind of military assistance they have been providing to Ukraine since 2014, including arms, training and intelligence sharing.

Russia and Ukraine have remained locked in a tense tug-of-war since Russia annexed Ukraine’s Crimean Peninsula in 2014 following the ouster of the country’s Kremlin-friendly president and threw its weight behind a separatist insurgency in eastern Ukraine, which has killed more than 14,000.

Vershbow said Russia would not have an easy time if it chose to invade Ukraine, whose military is better equipped and more capable than it was in 2014. “It would be very costly for the Russians in terms of casualties,” he said.

Ukraine and the U.S. estimate that Russia has at least 90,000 troops on its border with Ukraine, while Russia charged this week that Ukraine has amassed about 125,000 troops, or about half its military, near the rebel-controlled areas in the east.

Addressing the OSCE meeting, Blinken urged Russia “to respect Ukraine’s sovereignty and territorial integrity to de-escalate, reverse the recent troop buildup” and “return forces to normal peaceful positions.”

The Kremlin has voiced concern that Ukraine may use force to reclaim control of the rebel east. And adding to the tensions, the head of a Russian-allied, self-proclaimed separatist republic in the east appeared on Russian state television to say that he could turn to Moscow for military assistance if the region faced a Ukrainian attack.

Ukrainian officials have denied an intention to reclaim the rebel regions by force.

Blinken sought Thursday to pre-empt Russian claims that Ukraine was threatening Russian interests. “Ukraine is in no way posing a threat to Russia or seeking a confrontation that would justify a Russian military intervention,” the American secretary of state insisted.

Blinken also met separately with Ukrainian Foreign Minister Dmytro Kuleba. Kuleba tweeted afterward that Ukraine and the United States “are closely working together on developing a comprehensive deterrence package, including severe economic sanctions, to demotivate Russia from further aggressive moves.”

John Herbst, a former U.S. ambassador to Ukraine, said Thursday that Putin appeared to be “testing Ukraine. He’s testing the West.”

Herbst, in a discussion at the Atlantic Council think tank, argued the Biden administration’s response has been strong so far, leaving Putin “hoping now simply to get some sort of concession either from Ukraine or perhaps from the United States.”

“Putin is definitely as serious as he could be” in the standoff, countered Ukraine analyst Hanna Shelest.

Isachenkov reported from Moscow. Robert Burns in Washington, Jan M. Olsen in Copenhagen, Denmark, and Yuras Karmanau in Kyiv, Ukraine, contributed to this report.