The stock market was rising for a second day as the price of oil declined after Europe declined to ban Russian crude.
Dow Jones Industrial Average
futures had risen 93 points, or 0.3%, while
“Futures are slightly higher …as oil declined modestly,” wrote Tom Essaye, founder of Sevens Report Research.
Traders hit the brakes on the oil rally on reports that Europe wouldn’t ban Russian crude immediately and as the U.S. agreed to ramp up natural gas shipments to the European Union. Not only was the price of WTI Crude down just over 1% to around $110 a barrel, but it’s now down about 5% from its high of the week.
With the S&P 500 now up more than 8% from its low point this year, markets appear to have gotten comfortable with the fact that the Russia-Ukraine conflict is far from resolved. It’s also been able to digest the Federal Reserve’s plans to raise rates multiple times this year and next as it tries to rein in inflation—even if it means putting strain on the economy.
The uncertainty surrounding both, however, could mean that there’s still a bumpy ride ahead for the stock market. “I’m not particularly optimistic we’re going to see new highs any time soon,” said Mark Lehmann, CEO of JMP Securities. “It’s not like we’ve checked the box and completed things to worry about.”
Overseas, the pan-European
climbed 0.66%, and Tokyo’s
ended 0.1% into the green.
Outside of Japan, Asian stocks were broadly lower. Hong Kong’s Hang Seng Index fell 2.5% as regulatory concerns around U.S.-listed Chinese stocks—many of which are also listed in Hong Kong and Shanghai—returned to the fore.
“Shares in Hong Kong and mainland China [were] stung by comments from the U.S. audit watchdog, the Public Company Accounting Oversight Board, which said it’s ‘premature’ to say whether a deal to stop hundreds of Chinese companies being kicked off American stock exchanges would be struck,” said Wilson.
Bitcoin and other cryptocurrencies moved higher, boosted after a week of accelerating institutional adoption and a return of risk appetite among investors in wider markets.
Here are two stocks on the move Friday:
(ticker: HNST) fell nearly 20% in the U.S. premarket trade after the household and personal care group—founded by actress Jessica Alba—reported a greater-than-expected fourth-quarter loss. The company also issued a downbeat revenue forecast.
Bed Bath & Beyond
(BBBY) ticked up 2% in the premarket following a report from Bloomberg which said the group was near to settling with activist investor Ryan Cohen. A settlement could be reached as early as Friday, said the report—which cited anonymous sources—and may see three new directors added to the retailer’s board.
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