Stock market losses deepened as concerns about rising oil prices and the increased threat of a Russian invasion of Ukraine hit the broad market. Technology stocks suffered.
Stock market indexes plunged Friday, with the Nasdaq composite closing down 2.8%. The S&P 500 closed down 1.9%. The Dow Jones Industrial Average fell 1.4%.
Small caps escaped most of the carnage, but the Russell 2000 still fell 1%.
Volume fell on the Nasdaq but was higher on the NYSE compared with the same time on Thursday.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34737.47 | -504.12 | -1.43 |
| S&P 500 | (0S&P5) | 4418.49 | -85.59 | -1.90 |
| Nasdaq | (0NDQC ) | 13791.15 | -394.49 | -2.78 |
| Russell 2000 | 201.23 | -2.21 | -1.09 | |
| IBD 50 | 37.55 | -0.91 | -2.37 | |
Last Update: 4:30 PM ET 2/11/2022 |
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A report in The Wall Street Journal on Friday quoted national security advisor Jake Sullivan saying the U.S. believes Russian President Vladimir Putin could order an invasion of Ukraine at any time, even before the Feb. 20 end of the Beijing Olympics. Meanwhile, Russian troops continued to amass at the Ukrainian border.
That shook investors, who were already worried about inflation, rising oil prices and rising rates.
Tech Stocks Lead Declines
Microsoft fell 2% Friday as the software leader continues to build a new base. MSFT shares found support at the 200-day line in recent weeks, but remain below their 50-day line.
Apple, off 1.5%, dropped below its 50-day moving average.
Nvidia slumped 7% Friday, reversing practically all of its gains earlier this week. So far, the stock has been unable to form a complete base. Nvidia reports fiscal fourth-quarter earnings next Wednesday after the close.
Analysts expect Nvidia to earn $1.22 a share, an increase of 58% vs. a year ago, on sales of $7.4 billion, up 48%, according to FactSet. That would continue a strong profit trend of 64%, 102%, 89% and 60% EPS gains. Revenue rose 61%, 84%, 68% and 50% the past four quarters.
The chip designer works on self-driving, data center and other technologies, but graphics chips for video gaming and displays remains Nvidia's largest business.
Market Rally Takes Bearish Turn; What To Do Now
Treasuries Fall Slightly
The yield on the key 10-year Treasury bond was lower Friday at 1.92%, down from Thursday's rate when the benchmark yield topped 2% for the first time since July 2019. Rates rose on Thursday when the Bureau of Labor Statistics said the consumer price index surged to 7.5% in January. The data added to expectations that the Federal Reserve will rapidly remove pandemic stimulus and start raising interest rates next month.
But the price of oil was the news of the day, as the threat of a Russian invasion led to a 3.9% rise in the price of U.S. crude oil to $93.79 a barrel.
Ares Management, an investment management stock, started the day well as shares soared as much as 4% in early trading. But later Ares shares reversed those gains and closed down by 0.7%. Ares beat analysts forecasts on both earnings and revenue.
Ares Management has been basing since mid-November and is climbing the rear wall of a double-bottom base, approaching a buy point of 84.20, according to MarketSmith.
The Los Angeles-based firm reported net income of $0.85 per share for the quarter ended Dec. 31, on sales of $1.3 billion. FactSet analysts expected $0.72 per share in earnings and sales of $659 million.
Some Breakouts Continue
Breakouts were in short supply. But Mr. Cooper Group soared 19% after the company's fourth-quarter earnings beat expectations. Mr. Cooper broke out of a 3-1/2-month long double bottom and is now extended from the 45.37 buy point.
The company, one of the largest home loan servicing firms in the nation, also announced that privately held Sagent M&C will buy intellectual property rights related to Mr. Cooper's cloud-based platform for mortgage servicing, and Mr. Cooper will receive an equity stake in Sagent.
The Innovator IBD 50 ETF reversed from mild early gains to sink 2.4%.
Affirm Holdings plummeted Friday after the "buy now, pay later" financing firm on Thursday announced December-quarter results. Revenue climbed 77% to $361 million, above estimates of $329.1 million, and it posted a loss for the quarter.
Affirm has an expanding e-commerce partnership with Amazon.com. Amazon shares fell 3.6% Friday.
Follow Michael Molinski on Twitter @IMmolinski
