4.03pm: Markets in the green
US stocks closed with gains Wednesday amid escalating conflict between Russia and Ukraine.
At the closing, the Dow Jones Industrial Average gained over 600 points, or 1.8% at 33,891, while the Nasdaq Composite added 1.6% at 13,752, and the S&P 500 was up by 1.9% at 4,387.
On the corporate front, several tech companies including Pure Storage (NYSE:PSTG), Okta, C3 AI, and ChargePoint are scheduled to issue their earnings after the bell.
12.05pm: US Stocks rally
US equities continued to rise midday Wednesday as investors eyed developments in Ukraine and Russia, while weighing Powell’s testimony highlighting risks of inflation to the economy and upcoming interest rate hikes.
At noon, the Dow Jones Industrial Average sharply gained about 550 points, or 1.6% at 33,845, while the tech-heavy Nasdaq Composite went up by 1%, and the S&P 500 added another 1.6%.
“I'm not sure broader market sentiment has improved in any way since yesterday given the intensification of the invasion of Ukraine and soaring oil prices but equity markets are seeing some reprieve,” said Craig Erlam, senior market analyst, UK & EMEA, OANDA.
On the economic front, Erlam commented that Powell's testimony to the House Financial Services Committee contained no surprises, “with the Fed Chair highlighting the risks to the economy from inflation, the likelihood of an increase at the next meeting followed shortly after by balance sheet reduction, and finally, the uncertainty around the invasion of Ukraine.”
“All in all, we've learned nothing,” he said.
The ADP data got minimal attention and the revision to last month's number highlights why, noted Erlam.
“Job growth in February was 475,000, almost 100,000 higher than anticipated while last month was revised up from -301,000 to +509,000,” he said. “It makes it hard to read too much into the data, especially ahead of Friday's jobs report and against the current backdrop.”
11.30am: Proactive North America headlines
Marvel Discovery completes airborne magnetic survey on Gander East project
Canaccord Genuity (TSX:CF, LSE:CF) calls Zynerba "undervalued," reiterates 'Buy' rating after positive 4Q results
Infield Minerals plans to advance Desperado property with 2,000-meter reverse circulation drilling campaign
Viscount Mining announces results from New Century-Rattlesnake target in Cherry Creek, Nevada
Stifel GMP repeats 'Buy' on Steppe Gold as it restarts heap leach processing to recover gold and silver at its ATO mine in Mongolia
Kootenay Silver says JV partner Aztec Minerals hits “best hole yet” at Cervantes project in Mexico
MedX Health strikes agreement with Health Partners to launch tele dermatology screening platform in the UK
Healixa (OTC:EMOR) secures an additional $22.5M in order indications for its Global AquaDuct units from WATERisLIFE for projects in South America
Bloom Health Partners completes fiscal 1Q 2022 with $5.8M in revenue; confirms full-year outlook
Audacious sees fiscal 3Q revenue balloon to C$2.4M on international expansion, new commercial agreements
Electric Royalties updates on royalty portfolio spotlighting Graphmada graphite asset in Madagascar
Altamira Gold updates on drilling in Brazil; receives $1.66M through warrant exercises
Deepspatial files US patent for artificial intelligence-driven crop yield prediction technology
Champion Gaming (TSX-V:WAGR) says Underdog Fantasy set to sponsor Football Outsiders’ new premium content
Fortitude Gold (OTCQB:FTCO) reports record full year 2021 gold production from Isabella Pearl, net income hits $17.9M
American Resources says American Rare Earth subsidiary partners with IN3 for industry supply-chain collaboration
BlueRush joins the Brightcove Marketplace, enabling customers to personalize videos
Bridgeline Digital says its TruPresence product has been chosen by a national auto parts franchise to improve site search experience
ESE Metaverse division partners with Metachain Technologies to develop applications on blockchain and metaverse
Braxia Scientific generates double-digit year-over-year revenue increase in its fiscal 3Q 2022
Goldshore Resources hits high-grade gold at its Moss Lake Gold Deposit in Ontario
Codebase Ventures Inc announces investment strategy for metaverse
Kodiak says drilling is to resume at MPD copper-gold-porphyry project in British Columbia
Vuzix Corp eyeing significant year-over-year revenue growth for 2022 as adoption of smart glasses grows
DGTL Holdings completes its previously announced acquisition of Engagement Labs (TSX-V:EL)
Tocvan Ventures says drill results at Pilar project in Mexico are pending
Fobi AI (TSX-V:FOBI, OTCQB:FOBIF) sees fiscal 2Q revenue rise by 59% as it gains from a solid business pipeline
Gungnir Resources outlines its 2022 plans in Sweden with nickel as a key driver, gives exploration highlights from 2021
Fabled Copper unveils eighth set of results of 2021 surface fieldwork on its Muskwa Copper Project
Helium One shares have 100% upside, according to City broker Liberum
Great Panther Mining posts latest exploration drill results from past-producing Coricancha project in Peru
Harvest One and its LivRelief and Dream Water brands report continued improvement in underlying earnings for 2Q 2022
Southern Energy reveals selected highlights of its year-end independent oil and gas reserves NSAI Report; provides operational update
10.00am: Dow gains 300 points
US stocks opened higher on Wednesday despite the intensifying Russia-Ukraine geopolitical conflict, as investors await fresh updates from Federal Reserve chair Jerome Powell potentially confirming an interest rate hike by the US central bank later this month.
The Dow Jones Industrial Average rallied at the open, adding 343 points, or 1% at 33,638, while the S&P 500 gained 0.9%, and the tech-laden Nasdaq Composite was up by 0.5%.
In Canada, the central bank hiked interest rates to 0.5%, marking the first increase since October 2018, and the first change since the coronavirus pandemic.
Key to the Fed's likely move, expected in a few weeks, will be the latest report on nonfarm payrolls, due on Friday.
Meanwhile, oil prices continued to soar, at their highest levels since 2011, adding to already-lofty inflationary pressure and exposing equities to higher volatility. West Texas Intermediate crude jumped almost 5% on Wednesday, trading at $108.47.
Among the better performing shares on Wednesday morning was retailer Nordstrom, gaining 32% as the company projected higher-than-expected earnings for the fourth quarter. Shares of SoFi Technologies inc also gained, adding 6.4% following earnings.
6.30am: US stocks seen opening up
US stocks are expected to open higher even as Russian steps up its offensive on Ukraine, while sanctions against the country pushed Brent Crude Oil (LSE:BRENT) to a fresh seven-year high above $113 a barrel over concerns about supply disruptions.
Futures for the Dow Jones Industrial Average rose 0.5% in Wednesday pre-market trading, while those for the broader S&P 500 index gained 0.52% and the tech-heavy Nasdaq added 0.67%.
Stocks closed with sharp losses on Tuesday as investors continued to follow the escalating war between Russia and Ukraine as well as economic data that furthered expectations for a Fed rate hike expected later this month.
The Dow Jones shed 1.76% to 33,295, while the S&P 500 fell 1.55% to 4,306, and the tech-laden Nasdaq Composite was down by 1.59% at 13,532.
US Federal Reserve Chair Jerome Powell testifies before Congress today and is expected to signal that monetary tightening is still needed despite elevated uncertainty and the rising price.
“Most attention in the US will be on Fed Chair Powell’s testimony to Congress," commented Daiwa Capital Markets analyst Emily Nicol. "The economic impact of events in Ukraine will be much less forcefully felt in the US than Europe, due to a much lower level of trade and financial integration with Russia and energy self-reliance. And given the strength of the US economic recovery, the Fed will be less concerned about any tightening of financial conditions too.” Nicol added.
“So, Powell will certainly signal ongoing tightening ahead, although he should be mindful of the risks from the conflict via weaker demand from Europe as well as financial channels."