Tuesday's Market Minute: Defense Stocks Rally, Financials Falter

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U.S. equities started the week off lower as investors continue to monitor what market impacts the Russian invasion of Ukraine will have. Further pressure came this morning as satellite cameras captured a 40-mile-long convoy of Russian military vehicles apparently on its way to Kyiv, Ukraine’s capital. Many analysts believe the conflict won’t have lasting effects on U.S. markets, but do expect markets will take a short-term hit. How short-term that will be is yet to be determined, but we’re already seeing higher energy prices and higher agricultural commodities on top of inflation at 40-year highs, as well as rising volatility. 

Financial stocks took a hit Monday and were among the day’s biggest losers as the 10-Year Yield hit 5-week lows near 1.7%. Shares of JPMorgan Chase (JPM), Morgan Stanley (MS), and Citigroup (C) all fell more than four percent. Stocks that saw a lift Monday were energy and defense names. Raytheon (RTX), Lockheed Martin (LMT), General Dynamics (GD), and Northrop Grumman (NOC) are all trading at 52-week highs on momentum driven by the Russian invasion, which has lifted demand outlook for defense products. Germany increased its military spending by EUR100 billion, and on Sunday the German chancellor, Olaf Scholz, said that Germany would buy fighter planes made in the U.S. for the first time in decades, according to the Wall Street Journal.

Be on the lookout for manufacturing data and earnings today. The PMI and ISM will be released this morning, and several retail names are set to report this afternoon, including Nordstrom (JWN) and Ross Stores (ROST), in addition to the meme-stock AMC Entertainment (AMC), and Salesforce (CRM).

Image sourced from Pixabay

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.