The simmering Russia-Ukraine crisis has investors on the defensive Thursday, although stronger-than-expected earnings from Walmart have pared earlier market declines.
U.S. equity futures moved lower Thursday, while the dollar booked gains against its global peers, as investors navigated headlines from the Russia-Ukraine crisis and prepped for a big earnings release from Walmart prior to the start of trading.
Dow futures pared some of their earlier declines, however, following stronger-than-expected holiday quarter earnings, and a solid near-term outlook, from the world’s largest retailer (WMT) – Get Walmart Inc. Report prior to the start of trading.
Tensions remain high on the border between Russia and Ukraine, where President Vladimir Putin has amassed more than 100,000 troops. Reports of a pullback yesterday ignited hopes of a peaceful outcome, but accusations by Russian-backed separatists that government soldiers have fired at them have intensified concerns that the conflict could quickly escalate.
In the U.S., however, minutes from the Federal Reserve’s January policy meeting were far less hawkish than expect, with the central bank indicating it plans a measured and data-driven approach to near-term rate hikes over pre-determined path.
That helped tame expectations of a larger interest rate hike next month, particularly following a stronger-than-expected reading of January retail sales and the highest domestic oil prices in nearly eight years.
The CME Group’s FedWatch tool is now pricing in only a 34.7% chance of a 50 basis point increase in March, down from as high as 68% late last week.
Nvidia, Walmart, DoorDash, Applied Materials And Russia-Ukraine Crisis – Five Things You Must Know
Still, with geopolitical tensions in Europe near boiling, and inflation expectations showing no signs of abating, Wall Street is looking at a weaker open Thursday, with futures tied to the Dow Jones Industrial Average are indicating a 95 point opening bell decline.
Futures tied to the S&P 500 are priced for a 22 point retreat while those linked to the Nasdaq Composite futures are indicating a further 80 point slide for the tech-focused benchmark as 10-year Treasury note yields hold at 2.012% in overnight trading.
Nvidia (NVDA) – Get NVIDIA Corporation Report shares were notable early mover, falling 3.4% after the chipmaker posted stronger-than-expected fourth quarter earnings but issued a muted-near term outlook for profit margins.
Staying in tech, Applied Materials (AMAT) – Get Applied Materials, Inc. Report shares jumped 2.5% after the semiconductor equipment posted record December quarter sales and issued a solid near-term sector outlook.
DoorDash shares (DASH) – Get DoorDash, Inc. Class A Report shares, meanwhile, rocketed 25% higher after the food delivery specialists topped Wall Street forecasts for its fourth quarter earnings and said demand is likely to remain firm even as the pandemic wanes.
In overseas markets, Europe’s Stoxx 600 benchmark slipped 0.07% lower by mid-day trading in Frankfurt, while stocks in Asia were mixed, with the MSCI ex-Japan index rising 0.39% and the Nikkei 225 in Tokyo closing 0.83% lower at 27,232.87 points.
