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U.S. stock benchmarks gained traction higher Friday morning, though the Nasdaq Composite wobbled early, as reports indicated that Russia was in favor of talks with Ukrainian leadership.
However, Russian troops were pressing toward the capital of Ukraine, with reports indicating that Kyiv was under fire.
How are stock indexes trading
-
The Dow Jones Industrial Average
DJIA,
+1.55%
gained 283 points, or 0.9%, at 33,520. -
The S&P 500
SPX,
+1.34%
traded 36 points, or 0.9%, higher at about 4,325. -
The Nasdaq Composite Index
COMP,
+0.64%
traded 22 points, or 0.1%, to 13,487, amid up-and-down trade. - For the week, the Dow was on track for a 1.5% decline, the S&P 500 was looking at a 0.6% weekly skid, while the Nasdaq Composite was on track for a 0.5% decline.
For more: Complete MarketWatch coverage of the Russian invasion of Ukraine
On Thursday, the Dow snapped a five-session losing streak, closing up 92.07 points, or 0.3%, at 33,223.83, after falling as far as 2.6% in morning trading. The S&P 500 climbed 63.2 points, or 1.5%, finishing at 4,288.70, but in correction territory, while the Nasdaq Composite rose 436.1 points, or 3.3%, ending at 13,473.59, but bouncing off a session low at 12,587.88.
What’s driving the market
Stocks were gaining altitude on the back of news reports, citing a summary of a call between Russian President Vladimir Putin and Chinese leader Xi Jinping provided by China’s Foreign Ministry, which said Russia was ready to conduct negotiations with Ukraine.
The reports come as Russian forces were closing in on Ukrainian capital Kyiv, which had been under fire earlier Friday.
On Thursday, President Joe Biden announced a new wave of sanctions against Russia, in an attempt to isolate Moscow from the global economy. The White House also authorized more U.S. troops to be stationed in Germany. But the U.S. and its allies spared Russia’s oil exports and avoided blocking access to the Swift global payment network.
“The latest Western sanctions on Russia will hit its economy hard through tighter financial conditions and reduced trade, and might plausibly hit GDP by 1-2%-pts,” William Jackson, Chief Emerging Markets Economist, at Capital Economics wrote in note. “But sanctions stopped short of the more damaging scenario – both for Russia and Europe – in which Russia’s energy exports are targeted. For most countries, the main economic impact of the crisis will come through higher commodity prices and the impact on inflation.”
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Investors might be hoping that the Ukrainian crisis could slow moves by central banks to raise interest rates to combat inflation Ipek Ozkardeskaya of Swissquote Bank SA, wrote in a note. But “the only certainty is uncertainty, and this is how it will be for the next couple of sessions unfortunately,” he said.
Crude prices came off Thursday’s highs after rising above $100 a barrel during intraday trading for the first time since 2014.
In U.S. economic data on Friday, the Federal Reserve’s favorite inflation calculator rose by 0.6% in January and showed the biggest yearly increase since 1982, underscoring why the central bank is poised to raise interest rates for the first time in four years.
Meanwhile, orders for durable goods rose 1.6% in January, the government said Friday. Economists had forecast a 0.8% rise in orders for durable goods—products made to last at least three years.
In other economic reports, a final reading of U.S. consumer sentiment for February from the University of Michigan rose slightly to 62.8. The index registered 61.7 earlier in the month after a preliminary survey, marking the lowest level in more than 10 years.
Also, U.S. pending home sales fell a sharp 5.7% in January, according to a monthly index released by the National Association of Realtors on Friday. Economists polled by the Wall Street Journal expected pending home sales to rise 1%.
Which companies are in focus?
-
Shares of Tesla Inc.
TSLA,
+0.08%
were in focus Fridayafter Daiwa Capital analyst Jairam Nathan said it is finally time to start buying again, as supply chain concerns and rising oil prices weigh on legacy auto makers. Its stock was down 1.3%. - Johnson & Johnson’s and three major distributors completed nationwide settlements over their role in the opioid addiction crisis Friday. The drugmakers stock rose over 3%.
How are other assets faring?
- The 10-year benchmark Treasury note yield BX:TMUBMUSD10Y stood at 1.98%, up from 1.969% at 3 p.m. Eastern Time rate on Thursday.
- The U.S. dollar was down 0.4%, as gauged by the ICE U.S. Dollar Index DXY.
- Oil prices traded lower, with benchmark U.S. crude CLJ22 flat to slightly higher at $92.82 a barrel, retreating from $100.
- Gold GC00 traded down 1.8% to $1,892.80 an ounce, giving up all of its gains from Thursday and then some and pointing to weekly losses, down
- The Stoxx Europe 600 SXXP traded 2.8% higher, while London’s FTSE 100 UKX surged 3.4%.
-
In Asia, the Hang Seng HSI in Hong Kong declined by 0.6% and China’s Shanghai Composite Index SHCOMP rose 0.6%. Japan’s Nikkei 225 Index
NIK,
+1.95%
was up nearly 2%.
