The stock market rebounded modestly from three days of sharp losses, but gains faded in the first half-hour of trading Wednesday as the market remained in a precarious state.
The S&P 500 fell 0.1% while the Nasdaq composite gained 0.1%. The Dow Jones Industrial Average fell 0.1%. But small caps outperformed as the Russell 2000 rose 0.6%.
Volume fell on the NYSE and Nasdaq compared with the same time on Tuesday. Combined with the mixed indexes, there’s not much reason to believe the stock market is making a bottom.
After Tuesday’s losses, the S&P 500 hit a decline of more than 10% from its Jan. 4 peak, a decline that Wall Street typically considers a market correction. So far, the S&P 500’s decline does not equal its 12.4% slide in January. Still, the index is less than 100 points from undercutting that low.
The stock market remains on edge about a looming war in Ukraine. The Kyiv government declared a state of emergency and called up reservists. Russian President Vladimir Putin has not shut the door on a diplomatic solution, but his army continues to build up for an invasion. Earlier this week, Russian troops advanced into parts of eastern Ukraine that Putin called independent states.
Europe Stock Markets Climb
U.S. Stock Market Today Overview
Last Update: 10:06 AM ET 2/23/2022
Despite the tensions, European stocks rose today. The London FTSE 100 was up 0.5%, the German DAX added 0.9% and the Paris CAC 40 climbed 1.2%.
VanEck Russia ETF (RSX) tumbled 6.4%. The ETF has plunged 24% this week and is down more than 27% for the year — one of the worst country ETF performances of 2022.
Among major movers, Tenneco (TEN) skyrocketed 94% in huge volume after Apollo Funds (APO) agreed to acquire the company in a deal valued at $7.1 billion. Apollo will take the auto parts maker private, and Tenneco will end its listing on the NYSE. Apollo shares rose 0.7%.
Innovator IBD 50 ETF (FFTY) outperformed the stock market with a 0.9% increase. The best moves came mainly from financial and natural resources stocks.
Earnings News In Stock Market
Palo Alto Networks (PANW) rallied 5.5%, wiping away two days of losses, after the cybersecurity company’s results topped expectations. January-quarter adjusted earnings rose 12% to $1.74 a share. Sales including acquisitions rose 30% to $1.31 billion. Guidance was modestly above views.
Overstock.com (OSTK) soared nearly 30% after the online retailer’s fourth-quarter results topped expectations. Also, Intercontinental Exchange (ICE) said it is investing in tZERO, a broker-dealer that is 80% owned by Overstock.com. TZERO enables the trading of digital securities also known as Security Token Offerings. Overstock.com’s rally comes after the stock had plummeted to a July 2020 low.
Lowe’s (LOW) rose more than 5% after the home-improvement chain beat January-quarter expectations and raised its full-year guidance above analysts’ views. The company expects earnings for the fiscal year of $13.10 to $13.60 a share, above its prior guidance of $12.25 to $13 a share. It forecast sales of $97 billion to $99 billion. Lowe’s shares are bouncing off the 200-day moving average.
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