4:05pm: US equities close lower on Fed comments
US stocks closed lower after Federal Reserve Chair Jerome Powell sounded the alarm on surging inflation while vowing tough action.
Powell said “inflation is much too high” and pledged to take “necessary steps” to bring prices under control.
He noted that rate hikes could go from the traditional 25 basis point moves to more aggressive 50 basis point increases if necessary -- comments which came less than a week after the US Central Bank raised interest rates for the first time since 2018.
On the day, the Dow dropped 234 points, or 0.68%, to 34,520 and the S&P 500 fell 0.11 to 4,459. The tech-heavy Nasdaq declined 0.63% to 13,830.
12.05 pm: US benchmarks waver following the best week in nearly two years
US stocks were mixed in noon trading as Russia's continuing assault on Ukraine pushed up energy and commodity prices.
At midday, the Dow fell 161 points to 34,594, while the S&P 500 added 9 points at 4,472 and the tech-heavy Nasdaq gained 5 points to 13,898.
“We still don’t believe a sustainable bottom is in place, given our views that the geopolitical situation remains extremely fluid, inflation should continue to come in hot, and the growth outlook is weakening,” Wolfe Research’s Chris Senyek said.
Notable movers included shares of Boeing, which fell about 4% following media reports that a China Eastern Airlines Boeing 737 passenger plane had crashed.
11.50am: Proactive North America headlines:
Boeing 737 crashes in China with 132 people on board
Berkshire Hathaway snaps up insurer for US$11.6bn cash
Canaccord Genuity (TSX:CF, LSE:CF) and Stifel GMP forecast strong revenue growth for Canadian healthcare firm CareRx
Lion Copper and Gold inks option deal with Rio Tinto to advance Lion’s copper assets in Nevada
Los Andes Copper announces plan to temporarily suspend drilling at Minera Vizcachitas project in Chile
Belmont Resources says poised for diamond drill program at Greenwood camp asset; announces Marquee Resources investment
Globex Mining beefs up its royalty interests in Quebec
Aftermath Silver (TSX-V:AAG) updates on progress at its Berenguela silver-copper-manganese project in southern Peru
Dalrada appoints William Probst as vice president of energy management for Dalrada Energy Services
Gevo says oneworld Alliance members plan to purchase up to 200M gallons annually of its sustainable aviation fuel
Australis Capital says AUDACIOUS opens its first medical cannabis clinic in Thailand
Magna Mining commissions second drill rig at Shakespeare Nickel project in Ontario
Pathfinder Ventures (TSX-V:RV) updates on Black Sheep Income Corp deal; notes Penticton storage site at full capacity
DGTL Holdings makes senior appointments after merger with Engagement Labs (TSX-V:EL)
Power REIT (NYSE-A:PW) says to fund additional capital improvements to greenhouse cultivation property in Maine
Thesis Gold uncovers new south zone at Thesis II zone at Ranch project, British Columbia
Wellbeing Digital Sciences (NEO:MEDI.AQN, OTCQB:KONEF) says its KGK Science subsidiary engaged by Lophos Pharmaceuticals for novel peyote study
Belmont Resources receives regulatory approval to close a private placement of $522,900
Codebase Ventures rebrands as Cypher Metaverse to better represent its updated investment thesis
Argentina Lithium & Energy kicks off geophysics program its Rincon West project in Argentina
Greatland Gold interims highlight further progress at huge Havieron project
9.47am: US benchmarks start higher
US shares started higher, just, on Monday as oil firms rose as crude prices gained amid the Russia-Ukraine conflict.
The Dow Jones Industrial Average started over 46 points higher at 34,797 in early deals in New York.
The broader-based S&P 500 added around 14 points to stand at 4,477. The tech-laden Nasdaq added around one point at 13,895.
US crude (West Texas Intermediate) added around 4% at US$108.97 a barrel, while Brent crude was also up around 4% to US$112.45.
Last week, the three US benchmarks had their best week since November 2020, boosted largely by growth stocks.
Company quarterly earnings are in focus this week, with Nike and Tencent Music reporting after the bell today.
7.45am: US stocks seen lower
US stocks are expected to open lower on Monday, stalling after last week’s rally as waning optimism over successful peace talks between Russia and Ukraine send oil prices higher again.
Futures for the Dow Jones Industrial Average shed 0.3%, while those for the broader S&P 500 index fell 0.1%, and contracts for the tech-heavy Nasdaq-100 were down 0.3%.
Concerns over the economic impact of sanctions on Russia and its likely disruptions to supply chain continue to underpin investor concerns in commodities, bonds, currencies and stock markets.
‘’Optimism is seeping away about progress in talks to achieve a ceasefire in Ukraine and that’s sent the price of oil on the march upwards again amid heightened worries about supply,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
“As Ukraine refuses to surrender to Russian forces in Mariupol despite the devastating siege of the city, the chances of a breakthrough in negotiations are fading, with a gulf in position separating the two countries,” she added, referring to the Ukrainian government’s defiance of Russia’s demand to surrender before dawn on Monday.
Brent crude futures were up 3.1% to $111.29 a barrel as tensions remain high, Streeter noted, adding that investors are eyeing key NATO talks later this week aimed at tightening the sanctions screw on Russia while the prospect of a European crude embargo is expected to be put on the table once more.
“With the possibility that more than a million barrels of Russian oil a day will be snubbed, given that the Netherlands and Germany combined received around a quarter of Russia’s crude and light oil exports, demand would shoot up for crude supplies from OPEC+ nations. But the problem is that even now they aren’t coming up with the goods, as the cartel missed a daily production target by more than a million barrels in February, with US oil rigs not yet able to take up the slack,” Streeter concluded
On the corporate front, in pre-market trading, Boeing shares fell more than 6% after a China Eastern Airlines-operated Boeing 737 passenger plane carrying more than 130 crashed in Southern China.
Meanwhile, Nielsen Holdings shares slipped 17% after it rejected a $9 billion takeover offer from a private-equity consortium that it said undervalues the company. But Alleghany shares climbed 25% after Berkshire Hathaway agreed to pay about $11.6 billion in cash for the insurer.
Contact the author at jon.hopkins@proactiveinvestors.com