Market RecapWEEK OF FEB. 14 THROUGH FEB. 18, 2022
The S&P 500 index fell 1.6% last week amid mounting tensions between Russia and Ukraine and the potential effects of expected tightening in US monetary policy.
The market benchmark ended the week at 4,348.87, down from last Friday's closing level of 4,418.64. The index has now had weekly declines in five of the seven weeks that have occurred thus far in 2022. It is down 3.7% for February to date and has fallen 8.8% in the year to date.
Last week's decline came as tensions continued to escalate between Russia and Ukraine as well as between Russia and Western allies. Thursday, Russia said it had expelled the No. 2 diplomat at the US Embassy in Moscow.
Meanwhile, investors continue to worry about how the US economy will handle rate increases that are expected soon from the Federal Reserve's policy-setting committee amid rising inflation.
All but one sector fell last week. The energy sector had the largest percentage drop, down 3.7%, followed by a 2.5% slide in communication services and a 2.3% decline in financials. The lone sector in the black was consumer staples, up 1.1%.
The energy sector's drop came as crude-oil futures fell on the week amid a report that said Iran, Russia, China, Britain, France, Germany, the EU, and the US are reviewing a draft text of a deal to renew the 2015 Joint Comprehensive Plan of Action that limited Iran nuclear ambitions. This is likely to return Iran supplies to the global market.
Among the decliners in the energy sector last week, shares of Marathon Petroleum (MPC) fell 5.1% and APA Corp. (APA) shares shed 5.8%.
In communication services, shares of Paramount Global (PARA) tumbled 21%. The company, which just changed its name on Wednesday from ViacomCBS, reported Q4 adjusted earnings per share below analysts' expectations despite higher-than-expected revenue. The new name highlights the company's streaming service, Paramount+.
In the financial sector, shares of Charles Schwab (SCHW) declined 3.9%. The brokerage reported its core net new assets brought to the company by new and existing clients totaled $33.6 billion in January, down from $34.2 billion a year earlier. However, total client assets grew 15% year over year to $7.80 trillion.
On the upside, the gainers in consumer staples included shares of Kraft Heinz (KHC), which rose 11% as the food company reported Q4 results that topped Street consensus estimates. The company also forecast organic revenue growth this year and said it expects consumption to be stronger compared with pre-pandemic levels.
The US stock market will be closed Monday in observance of Presidents Day.
Corporate earnings reports are expected next week from companies including Home Depot (HD), Macy's (M), eBay (EBAY), Mosaic (MOS), Toll Brothers (TOL), Lowe's (LOW), Moderna (MRNA), Norwegian Cruise Line Holdings (NCLH) and Intuit (INTU).
On the economic data calendar, all eyes will be on January inflation data due Friday. Other data expected next week include January new home sales, the February consumer confidence index, and February readings from Markit on the manufacturing and services sectors.
Provided by MT Newswires