Stock Market Today: Stocks Retreat as Oil Prices Spike
A storm-damaged pipeline running from Kazakhstan to the Black Sea could take a big bite out of global oil exports in the near term.
Stocks traded lower on the two-year anniversary of the pandemic market bottom as familiar worries weighed on investor sentiment.
For starters, sizzling energy prices kept inflation concerns front and center. U.S. crude futures jumped 5.2% to $114.93 per barrel after Russia said a storm-damaged pipeline running from Kazakhstan to the Black Sea could cut exports by roughly 1 million barrels per day in the near term.
Rising interest rates also remained in focus as speeches from several Federal Reserve speakers indicated support for taking a more hawkish approach on inflation.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Among them was Cleveland Fed President Loretta Mester – a voting member of the central bank's rate-setting committee – who told reporters that she thinks "we're going to need to do some 50-basis-points moves." (A basis point is one-one hundredth of a percentage point.)
Elsewhere on the economic front, data from the Census Bureau showed new home sales fell by a bigger-than-expected 2% in February to an annual rate of 772,000.
Additionally, mortgage applications are down around 8% this week, says Michael Reinking, senior market strategist for the New York Stock Exchange. "As we approach the ever-important spring selling season, this is a dynamic to pay close attention to," he adds.
At the close, the Dow Jones Industrial Average was down 1.3% at 34,358, the Nasdaq Composite was off 1.3% to 13,922 and the S&P 500 Index had given back 1.2% to 4,456.
Other news in the stock market today:
- The small-cap Russell 2000 plunged 1.7% to 2,052.
- Gold futures climbed 0.8% to $1,937.30 per ounce.
- Bitcoin slipped 0.3% to $42,234.00. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
- Adobe (ADBE, -9.3%) plunged at the open and remained grounded throughout the session following the company's Tuesday night earnings report, during which it lowered full-year sales forecasts to reflect the stoppage of operations in Russia. Its quarterly revenues of $4.26 billion and adjusted profits of $3.37 per share were both slightly better than expected. However, Adobe reduced its 2022 annual recurring revenue forecasts from Russia and Ukraine by a total of $87 million. "While Adobe is clearly going through a revenue deceleration and is the first large software firm to flag European weakness as a result of the conflict, the pending price increase will help to soften the blow," says UBS analyst Karl Keirstead, who remains on the sidelines with a Neutral rating (equivalent of Hold).
- Apple (AAPL, +0.8%) represented some rare green ink in a sea of red Wednesday. Multiple reports, citing people familiar with the matter, said Apple bought British financial technology startup Credit Kudos in a deal worth $150 million. The company is a competitor of "big three" credit reporting agencies Experian (EXPGY, -1.8%), Equifax (EFX, -1.2%) and TransUnion (TRU, -1.3%). "Credit Kudos' intelligent products enable businesses to leverage Open Banking to enhance affordability and risk assessments," according to Credit Kudos' website. "Our predictive insights are built by combining transaction and loan outcome data."
Stock Buybacks Could Have a Big Year
Don't let the market's daily noise distract you from its long-term signal. After all, investing is a marathon, not a sprint – and there are many reasons to be upbeat toward stocks, especially those that return cash to shareholders.
Companies that reliably grow their dividends, or gift investors with special one-time payments, are always worth paying attention to. And then there are those firms that have generous buyback programs, which can help boost earnings per share and stock prices to boot.
Indeed, the breadth of buybacks is currently running near a record high, according to the Goldman Sachs Portfolio Strategy Research team. As a result, GS recently raised its S&P 500 buyback forecast by 12% to $1 trillion for 2022.
"Looking ahead, our previously assumed headwinds to buybacks from higher effective corporate tax rates and a buyback excise tax no longer look likely," the team says. "Based on our forecast, buybacks will continue to represent the largest use of cash for S&P 500 companies, followed by capital expenditures."
Read on as we explore six companies that are repurchasing impressive amounts of their own stock.
Disclaimer
Karee Venema was long AAPL as of this writing.
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Stock Market Today: Nasdaq Soars Ahead of Tesla Earnings
The EV stock rose nearly 2% ahead of its highly anticipated Q1 earnings report, due after tonight's close.
By Karee Venema Published
-
GM Stock Accelerates After Earnings Beat
General Motors beat expectations for the first quarter and raised its outlook for the year. Here's what you need to know.
By Joey Solitro Published
-
Stock Market Today: Nasdaq Soars Ahead of Tesla Earnings
The EV stock rose nearly 2% ahead of its highly anticipated Q1 earnings report, due after tonight's close.
By Karee Venema Published
-
Stock Market Today: Markets Rebound Ahead of Big Week for Earnings
Equities rallied on easing geopolitical tensions, upcoming quarterly results.
By Dan Burrows Published
-
Stock Market Today: Nasdaq Spirals as Netflix Nosedives
A big earnings boom for credit card giant American Express helped the Dow notch another win.
By Karee Venema Published
-
Stock Market Today: S&P 500, Nasdaq Extend Losing Streaks
The two indexes have closed lower for five straight sessions.
By Karee Venema Published
-
Stock Market Today: Dow Slips After Travelers' Earnings Miss
The property and casualty insurer posted a bottom-line miss as catastrophe losses spiked.
By Karee Venema Published
-
Stock Market Today: Stocks Stabilize After Powell's Rate-Cut Warning
The main indexes temporarily tumbled after Fed Chair Powell said interest rates could stay higher for longer.
By Karee Venema Published
-
Stock Market Today: Stocks Reverse Lower as Treasury Yields Spike
A good-news-is-bad-news retail sales report lowered rate-cut expectations and caused government bond yields to surge.
By Karee Venema Last updated
-
Stock Market Today: Nasdaq Leads as Magnificent 7 Stocks Rise
Strength in several mega-cap tech and communication services stocks kept the main indexes higher Thursday.
By Karee Venema Published