Dow futures fell early Monday morning, along with S&P 500 futures and Nasdaq futures, amid the ongoing Russian invasion of Ukraine and mounting Western sanctions. The stock market fell to new lows last week but then rebounded strongly. Expect a volatile overnight trading session for stocks, bonds, crude oil and currencies.
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Ukraine continues to resist Russia’s advance, particularly near the capital, Kiev, and the second city, Kharkiv. Russia continues to bring in more troops and weapons, however, and gained key ground on Sunday. The United States and other allies are imposing tough new sanctions on Russia, while Europe is ending decades of security policy overnight.
Putin ordered Russia’s nuclear deterrent forces to put on alert on Sunday.
“Quick” penalty for Russia
Late last week the stock market rebounded largely with relief that Western sanctions were not as severe as feared. But on Saturday, the United States, the European Union, the United Kingdom and Canada agreed to suspend some Russian banks from the express payments system and target the Russian Central Bank.
Swift connects all global banks in a network, handling payments worth trillions of dollars. Without express access, banks will not respect payments or transfers from Russia. President Biden did not take that step last week, amid opposition from several European countries. But in a sign of how quickly attitudes are moving, those European countries now support more serious sanctions.
Ursula von der Leyen, European Commission President, said Western countries would ban a “certain number” of Russian banks from the Swift network. The restrictions do not include energy payments, including Europe’s purchases of natural gas. “Energy sanctions are still on the table,” White House press secretary Jen Psaki said on Sunday.
Many Western banks can choose to “self-punish”, refusing to do business with any Russian financial institution, whether it is officially targeted or not.
Separately, the West will target the Central Bank of Russia, essentially freezing its external reserves. These measures will put enormous pressure on Russia’s financial system and economy.
On Sunday, Japan said it would also impose similar sanctions on Russian banks, as well as sanctions against President Vladimir Putin.
The Swiss president said on Sunday that it was “very likely” that his country, the financial giant, would impose similar measures against Russian banks on Monday.
The White House also said America and its allies would “launch a multilateral transatlantic task force to identify, chase, and freeze the assets of Russian companies and sanctioned oligarchs — their yachts, mansions, and any other illicit gains.”
Russia could respond by cutting off gas from Europe or limiting exports of crude oil or other key raw materials. This may be unlikely at the present time. But the mere possibility could cause the prices of commodities to rise even further.
Bank operations have already begun as Russians scrambled to withdraw money from ATMs, fearing that withdrawals would stop.
European Defense Policy
On Saturday, Germany ended its longstanding opposition to arming Ukraine, freeing several other countries to arm it too. On Sunday, Chancellor Olaf Schulz said defense spending would rise to more than 2% of GDP, the official NATO minimum that Germany has long said.
Schulz also announced his support for new LNG import terminals, increased natural gas storage, and other energy independence measures. There are even reports that the German coalition government is considering stepping back from its nuclear plant.
The European Union has agreed to finance the purchase and delivery of arms, for the first time ever, on behalf of Ukraine. Several member states will even provide Ukraine with EU-funded combat aircraft, according to a high-ranking EU official.
Sweden, breaking an old tradition, will send 5,000 AT4 anti-tank weapons to Ukraine, along with body armor, helmets and more.
The European Union and Canada closed their airspace to all aircraft registered in Russia. The European Union shut down the pro-Kremlin media. It will also extend its sanctions against Russia to include Belarus, which is participating in the invasion of Ukraine.
The US and French governments separately encouraged their citizens to leave Russia.
Stock preparation
At the moment, the market is in a correction, with the Nasdaq briefly reaching a downward limit of 20%. But a new attempt to rise in the market is underway. Investors should remain cautious until there is a confirmed uptrend, but they should build their own watchlists.
Apple stock Microsoft (MSFT), Regeneron Pharmaceuticals (Region), GB Hunt Transport (JBHT) And the Arista Networks (Network) is not in the scope of purchase now. But an Apple (AAPL) and these other names are generated near buy points And it could be doable if the rally attempt builds momentum.
at the same time Tesla (TSLA) rebounded from a six-month low of 700 during Thursday. But Tesla stock still fell 5.5% to 809.87 for the week, ending below the 200-day streak. Crossing that 200-day streak is critical for the EV giant. But TSLA’s stock is still far from an early entry.
Tesla and Microsoft shares are working IBD Leaderboard. Microsoft stock is up too Long-term leaders of IBD.
Dow jones futures contracts today
Dow futures were down 1.7% against fair value. S&P 500 futures lost 2.4% and Nasdaq 100 futures tumbled 2.6%.
The 10-year Treasury yield fell 10 basis points to 1.89%.
US crude oil futures are up 6%, with Brent crude back above $100 a barrel. Popping gold 1%. Wheat futures rose, as Ukraine became a major exporter of wheat. Corn and soybean futures also rose strongly.
The dollar rose against most currencies, including the euro. The ruble, which had already fallen dramatically last week, is down more than 30% amid heavy Russian sanctions.
Reuters quoted a Central Bank document that Russia will prevent foreigners from selling Russian securities.
Remember: work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.
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stock market rise
The stock market rally rebounded late in the week after falling to multi-month lows.
The Dow Jones Industrial Average fell 0.1% last week stock market trading. The S&P 500 rose 0.8%. The Nasdaq Composite Index rose 1.1%. Small cap Russell 2000 rose 1.5%.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) advanced 1.1% last week, while the creator of the IBD Breakout Opportunities ETF (fit) rose 0.3%. iShares Expanded Technology and Software Fund (ETF)IGV) jumped 3.4%, as MSFT stock was a major component of SMH. VanEck Vectors Semiconductor Corporation (SMH) rose by 2%.
SPDR S&P Metals & Mining ETF (XMEIt jumped 4.8% last week, hitting a new high. Global Infrastructure Development Fund X US (cradle) rose 0.7%. US Global Gates Foundation (ETF)Planes) closed up 0.7%. SPDR S&P Homebuilders ETF (XHB) decreased by 0.3%. SPDR Specific Energy Fund (SPDR ETF)XLE) up 1.2% and the Financial Select SPDR ETF)XLF) decreased by 0.3%. SPDR Healthcare Sector Selection Fund (XLV) rose by 2.7%.
Shares reflect more speculative stories, the ARK Innovation ETF (see you) rebounded 4.7% last week and the ETF ARK Genomics (ARKG) 4.5%. Both hit 20-month lows during the week. Tesla stock continues to rank number one among Ark Invest’s ETFs.
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stock to watch
While some stocks are already flashing buy signals, current market conditions and the headlines of an invasion of Ukraine still make new positions risky. Apple, Microsoft, Arista Networks, Regeneron and JBHT stocks are worth watching as they could trigger buy signals if the bullish market attempt continues to build strength.
Apple stock fell 1.5% last week to 164.85, but moved away from Thursday’s lows of 152, when it touched the 200-day line. no longer file cup base with handleAAPL stock is a consolidation with 183.04 buy points. Investors can view Apple’s chart as a file double bottom pattern, giving her an entry of 176.75. That would definitely be an early entry at least. An earlier entry will come if Apple stock retraces the 50-day line, which will also coincide with the breakout of the trend line.
The Relative force line As for AAPL stock, it is still near record levels. The RS line, the blue line in the provided charts, tracks the stock’s performance against the S&P 500 Index.
Microsoft stock rose 3.3% last week to 297.31 after hitting an eight-month low on Thursday. Stocks coming to the 200 day streak. A move above this level, as well as the trend line, would provide an entry as a long-term leader. The 50-day line, which roughly coincides with the February highs, is also an important area. The traditional purchase point is 349.77, according to MarketSmith Analysis.
ANET stock fell 1.9% to 123.50 last week, but bounced back from near the 200-day line. Stocks are still below the 50-day line. Arista Networks share price is 148.67 buy points. Investors can use the February 17 high of 138.87 +10 cents as an early entry. Arista’s earnings and sales growth accelerated modestly in the last quarter. The price-earnings ratio is not extreme.
REGN stock rose 0.6% to 618.66, finding support at the high 200-day line and closing just below it 50 days Line. The official buying point for Regeneron stock is 673.96 from flat base next to another base. Investors can use the recent high of 645 + 10 cents as income, or even a trendline for a slightly lower entry. Regeneron boomed in 2021 from Covid treatments, but profits are expected to decline in 2022, although to remain well above the pre-2021 level. PE is in the single digits.
JBHT stock rose 4.1% to 196.90 last week, hitting the 50-day streak. JB Hunt stock has 208.97 buy points with a flat base. But investors can use 199.42, just above the February 15 high, as an early entry.
Market Rise Analysis
Stock market recovery is dead. Long live the stock market rally (try). The stock market slipped back into the correction on Wednesday as the major indexes broke below their Jan. 24 lows, putting a confirmed long-suffering uptrend out of its misery. On Thursday morning, the Nasdaq fell more than 20% from its November peak, hitting bear market territory. But major indexes rebounded on Thursday and Friday, closing near session highs in the two days.
Friday was the second day of trying to rally the stock market. A good day or two in the market correction is not meaningful. That’s why it’s important to find a file Follow-up day To confirm the stock market rally. Of course, as recent events have shown, sure rallies are not always successful.
The market continues to be driven by Russia and Ukraine headlines and is subject to significant and rapid volatility. Positive swings are pleasant, negative reversals are not many. The Federal Reserve will start raising interest rates in a few weeks, with the Russian invasion and Western sanctions complicating the task of policymakers in reining in inflation without flooding the economy.
On a technical basis, even a certain height will encounter many obstacles. Major indicators are still below the major moving averages, their February highs and their all-time highs.
Time to Market with IBD’s ETF Market Strategy
What are you doing now
Aggressive investors can start nibbling at broad-market stocks or ETFs, but with this big caveat. If you’re going to jump early, you should be prepared to get out just as quickly, or even faster. Any new jobs should be small.
There is a strong argument that investors should wait for a follow-up day to start adding exposure, and even then cautiously. By then, stocks such as Apple, Regeneron and ANET may be flashing buy signals. But they may not succeed.
It’s definitely time to work on your watch lists. A good number of stocks like Microsoft are prepared from a variety of sectors, if you get a good few days.
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The Russian invasion of Ukraine poses significant economic risks