Strategas Chairman Jason DeSena Trennert weighs in on how the Russian invasion of Ukraine will impact the markets and how the Federal Reserve can tame inflation.
U.S. stocks sank Monday as investors weigh the latest on Russia’s invasion of Ukraine against the U.S. expanding sanctions against Russia’s central bank by freezing all assets held by Americans.
The Dow Jones Industrial Average fell over 450 points or 1.4%, while the S&P 500 fell 1.1% and the Nasdaq Composite 0.6%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 33770.08 | -288.67 | -0.85% |
| SP500 | S&P 500 | 4360.31 | -24.34 | -0.56% |
| I:COMP | NASDAQ COMPOSITE INDEX | 13720.688223 | +26.06 | +0.19% |
INFLATION, MONETARY POLICY MISSTEPS POSE RISK TO US ECONOMY: NABE
Early Monday, the ruble has plunged more than 30% after the move to block Russian banks from the SWIFT payments system. The sanctions include restrictions meant to crimp the Russian central bank’s access to over $600 billion in reserves and hinder its ability to support the ruble. In combat, the Russian central bank raised its key rate to 20% from 9.5% in a desperate attempt to shore up the plummeting ruble and prevent a run on banks.
RUSSIA HIKES KEY RATE TO 20%, TELLS COMPANIES TO SELL FX
Russian exchange-traded funds were under pressure.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| RUSL | DIREXION SHARES ETF TRUST DAILY RUSSIA BULL(POST REV | 10.52 | -0.81 | -7.15% |
| RSX | VANECK VECTORS RUSSIA ETF | 11.96 | -3.69 | -23.58% |
| ERUS | ISHARES INC MSCI RUSSIA CAPPED ETF | 20.28 | -4.70 | -18.82% |
Oil prices surged Monday, with U.S. benchmark crude nearing $96 per barrel in electronic trading on the New York Mercantile Exchange. Brent Crude hovered at $98 per barrel.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND L.P. | 67.29 | +1.49 | +2.26% |
| BNO | UNITED STS BRENT OIL FD LP UNIT | 26.97 | +0.71 | +2.70% |
and gold climbed above $1,900 as investors moved to safer assets amid the volatility hitting U.S. equities.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GLD | SPDR GOLD SHARES TRUST – EUR ACC | 178.06 | +1.50 | +0.85% |
In stocks to watch, British Petroleum, on Sunday, confirmed it will exit its stake in Russian energy company Rosneft – the latest private severance of relations with Russia as the global superpower invades neighboring Ukraine. BP, which has held a 19.75% stake in Rosneft since 2013, also said its chief executive, Bernard Looney, will resign from the Russian firm’s board, effective immediately. Bob Dudley, a former BP executive, will also resign from Rosneft’s board.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BP | BP PLC | 28.91 | -1.82 | -5.94% |
Defense stocks moved higher as Germany announced plans to boost military spending to 2% of output.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LMT | LOCKHEED MARTIN CORP. | 426.20 | +19.51 | +4.80% |
| NOC | NORTHROP GRUMMAN CORP. | 436.13 | +26.40 | +6.44% |
| RTX | RAYTHEON TECHNOLOGIES CORP. | 101.245 | +3.10 | +3.15% |
In earnings news Monday Lordstown Motors, Nielsen, Party City and Tegna before the market open and SmileDirectClub, Workday and Zoom Video Communications after the bell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| RIDE | LORDSTOWN MOTORS | 2.71 | -0.50 | -15.60% |
| NLSN | NIELSEN HOLDINGS PLC | 17.13 | -0.44 | -2.50% |
| PRTY | PARTY CITY HOLDCO INC. | 4.45 | +0.05 | +1.14% |
| TGNA | TEGNA INC. | 22.80 | +0.10 | +0.44% |
| SDC | SMILEDIRECTCLUB INC. | 2.25 | +0.04 | +2.04% |
| WDAY | WORKDAY INC. | 230.56 | +5.33 | +2.37% |
| ZM | ZOOM VIDEO COMMUNICATIONS INC. | 131.67 | +6.35 | +5.07% |
GERMANY’S E.ON REJECTS HALTING NORD STREAM 1 PIPELINE – PAPER
In cryptocurrencies, Bitcoin hovered around the $38,000 level.