Stock market news live updates: Stock futures jump after Russia reports pullback of military troops
Wall Street’s main benchmarks rose sharply in pre-market trading Tuesday after the Russian Defense Ministry said some military units will start returning to their permanent bases after completing drills near the Ukrainian border.
Futures tied to the S&P 500 jumped 1.47%, or 69 points, to 4,463.00, while Dow Jones Industrial Average futures were up 1.16%, or 401 points to 34,872.00. Contracts on the Nasdaq Composite steeply advanced 2.23%, or 317.50 points, to 14,570.50 after the escalating threat of Russian military action against Ukraine had weighed on markets in recent days as investors already grapple with the prospect of swifter monetary tightening by the Federal Reserve.
Meanwhile, oil retreated from its highest price since 2014, falling 3.76% to $91.87 per barrel.
Fears that the Kremlin will green light a move to force in on Ukraine as soon as this week have created a new headwind for global markets worried the conflict could exacerbate inflation and spur other economic disruptions. The Wall Street Journal reported on Monday the U.S. was closing its embassy in Kyiv and destroying networking and computer equipment as a Russian military attack becomes increasingly imminent.
“The escalation of Russia and Ukraine tensions come at a time when the stock market is already vulnerable given inflation worries and the potential for Federal Reserve tightening,” Sanders Morris Harris Chairman George Ball said in a note. “If an armed conflict between Russia and Ukraine is somehow avoided, a short-lived relief rally is likely, but there are still too many worries on the horizon for any type of longer lasting upward move higher in stocks.”
The geopolitical tensions add to the uncertainty around central bank policy that has dominated market sentiment in recent months. Last week, the Labor Department reported the Consumer Price Index (CPI) notched a steeper-than-expected 7.5% increase over the year ended January to mark the largest annual jump since 1982.
The surge heightened calls for the Federal Reserve to intervene more aggressively than anticipated to rein in soaring price levels, even raising the possibility of an emergency hike before the bank’s next policy meeting in March.
“You have everything laid out perfectly for the market to go lower,” he said, pointing to higher interest rates, slow earnings, and slow economic growth around the globe. “There’s no good reason to see this market go higher.”
Comerica Wealth Management Chief Investment Officer John Lynch pointed out in a note that despite recent volatility in interest rates and equities, areas of the fixed-income markets have exhibited less turbulence. With corporate credit stress limited for investment grade and high-yield bonds, 10-year breakeven inflation expectations remain contained.
“We believe it is important for investors to focus on market signals, rather than headlines, while also respecting traditional patterns for prices, interest rates, and equity valuations,” Lynch said.
Although earnings season is slowly winding down, investors will tune in this week for another docket of corporate results to weigh against monetary and geopolitical conditions.
Investors can expect reports from companies including Walmart (WMT), Marriott International (MAR), ViacomCBS (VIAC), and Airbnb (ABNB) on Tuesday. On the economic front, a fresh read on the Producer Price Index for January and retail sales are due out before open to serve as another inflation snapshot for markets.
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8:30 a.m. ET: Producer prices surge 1% in January
The U.S. Bureau of Labor Statistics reported its Producer Price Index (PPI) for final demand rose 1% during the month of January, seasonally adjusted. Economists had forecasted an advance of 0.5%, according to Bloomberg consensus estimates.
The jump in producer prices last month follows advances of 0.4% in December 2021 and 0.9% in November. Final demand prices moved up 9.7% on an unadjusted basis for the 12 months ended January 2022.
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8:23 a.m. ET: Burger King, Tim Hortons lead Restaurant Brands’ sales beat
Restaurant Brands International Inc. (QSR) reported fourth quarter results on Tuesday that beat estimates on revenue and profit, powered by a surge in online sales and a recovery in demand at its Burger King and Tim Hortons chains as consumers increasingly dine out.
The company’s global digital sales rose more than 65% to $10 billion in 2021 on the heels of efforts by Restaurant Brands and its fast-food chain peers to boost investment in e-commerce as more people ordered their food online during the pandemic.
With more Americans vaccinated and COVID restrictions easing, consumers have also increasingly returned to in-person dining after the virus kept people away from eating out.
Tim Hortons, which typically accounts for the greater half of Restaurant Brands’ revenue, saw an 11.3% increase in comparable sales in Canada, while same-store sales at Burger King in the United States rose nearly 2%.
Shares were up more than 3% to $58.95 a piece in pre-market trading.
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7:00 a.m. ET: Contracts on S&P, Dow, and Nasdaq surge after Russia pulls back troops
Here were the main moves on Wall Street in pre-market trading Tuesday:
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S&P 500 (^GSPC): +66.50 (+1.51%) to 4,460.50
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Dow (^DJI): +399.00 (+1.16%) to 34,870.00
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Nasdaq (^IXIC): +296.75 (+2.08%) to 14,549.75
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Crude (CL=F): -$3.37 (-3.53%) to $92.09 a barrel
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Gold (GC=F): -$17.00 (-0.91%) to $1,852.40 per ounce
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10-year Treasury (^TNX): +4.1 bps to yield 1.9960%
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6:02 p.m. ET Wednesday: Futures open flat after Russia-Ukraine tensions weigh on earlier session
Here were the main moves in markets ahead of overnight trading Wednesday:
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S&P 500 (^GSPC): +3.25 (+0.07%) to 4,397.25
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Dow (^DJI): +6.00 (+0.02%) to 34,477.00
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Nasdaq (^IXIC): +16.75 (+0.12%) to 14,269.75
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Crude (CL=F): -$0.74 (-0.78%) to $94.72 a barrel
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Gold (GC=F): +$3.80 (+0.20%) to $1,873.20 per ounce
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10-year Treasury (^TNX): +4.1 bps to yield 1.9960%
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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