Dow Jones Futures Pare Losses, Crude Oil Jumps; Market Correction Nearing New Leg Down Amid Russia’s Ukraine Invasion | Investor’s Business Daily – Investor’s Business Daily
Dow Jones futures fell solidly Monday morning, along with S&P 500 futures and Nasdaq futures, but were off overnight lows. Crude oil futures jumped as pressure grew for a Russian oil embargo. The stock market rally attempt saw losses last week, reversing from key resistance as Russia’s Ukraine invasion continued to roil financial markets.
Futures rebounded from lows as Russia issued new terms for ending the fighting. They included Ukraine not joining any bloc and recognizing Russian territorial gains. There is no chance of Ukraine agreeing to these terms now, but they signal that Russia is feeling pressure to back down, slightly.
Russia continues to lose troops and equipment, but is pounding major cities with artillery and bombs, raising Ukrainian civilian casualties. Humanitarian corridors to evacuate civilians broke down on Saturday and Sunday, amid Russian shelling.
Russia claims it’s opening up new corridors, but Ukraine says they are safe passage to Russia or Belarus, not to the west.
The U.S. says it’s working with Poland on ways to get more fighter jets to Ukraine. It’s also discussing a halt to Russian crude imports, along with Europe.
While the market rally attempt is still ongoing, the major indexes are starting to tumble toward their Feb. 24 lows. That could mark the third leg of a market correction going back to early January or late November. In addition to the ongoing Russia-Ukraine crisis, the consumer price index this week will offer the latest inflation reading just days before the Federal Reserve meets to begin raising interest rates.
Broadcom (AVGO), Costco Wholesale (COST), Vertex Pharmaceuticals (VRTX), Regeneron Pharmaceuticals (REGN) and Fortinet (FTNT) are five stocks showing bullish action.
AVGO stock and the others listed here are all trading near their 50-day lines, close to possible early entries while working on proper bases. Broadcom and COST stock moved Friday after earnings Thursday night. The relative strength lines for REGN stock and the others here are at or near consolidation or long-term highs. That’s an especially bullish signal for stocks still in bases.