Weekly Market Recap – February 25, 2022
In the first massive European military operation of its kind since WWII, Russia invaded Ukraine early on Thursday. The news of the invasion triggered panic in Russia’s markets. The Ruble collapsed as much as 85-to-1 against the U.S. Dollar, an all-time low for the currency. Moscow’s stock exchange (MOEX) had plunged 45% by midday Thursday, wiping out $75 billion of value for the country’s largest companies. As the week ended, Ukraine’s capital, Kyiv, was under siege by missile attacks, and more than 1,700 demonstrators in 50 major Russian cities had been arrested for protesting the war.
Home prices, as measured by the S&P Case Shiller index (on a year-over-year basis) were unchanged at 18.8%. Monthly economic statistics, compared with previous values were as follows: pending home sales -5.7% v -2.3%, new home sales 801,000 vs. 839,000, durable goods orders +1.6% vs. +1.2%, consumer confidence index 110.5 vs. 111.1, nominal personal income 0.0% vs. +0.4%, nominal consumer spending +2.1% vs. -0.8%. The revised quarterly GDP report for Q4 showed a 7.0% increase vs. the rise of 6.9% in Q3. Regarding weekly stats, there were 232,000 initial jobless claims vs. 249,000 the week before.
After plunging on Thursday, stocks mostly recovered. Two of the three stock market indices we track moved higher. The S&P 500 finished at 4,384.65 (+0.8%) and NASDAQ Composite gained 1.1% for the week, ending at 13,964.62 on Friday. The DJIA had a slight loss, going out at 34,058.75 (-0.1%). CBOE’s VIX skyrocketed from the invasion panic, but gave it all back the next day, ending at 27.59 (-0.6%). In currency markets, the U.S. Dollar Index was relatively stable, closing at 96.54 (+0.5%). The S&P GSCI benchmark basket of commodity futures increased to 652.61 (+1.4%).
Metals ended mixed. Futures settlement prices and their respective percentage changes were as follows: gold at $1,887.60 (-0.6%), silver at $23.997 (+0.02%), platinum at $1,050.10 (-2.5%), palladium at $2,360.70 (+1.0%), copper at $4.4720 -1.1%) and aluminum at $3,357.50 (+2.9%).
Petroleum sector futures made new contract highs on Thursday and then eased on Friday. NYMEX WTI ended the week at $91.59 per barrel, up 1.5%. ICE Brent rallied to 97.93 (+4.7%). Heating oil gained 2.4%, closing the week at $2.8495, and RBOB gasoline added 2.2% to $2.7273 per gallon. Natural gas moved sharply higher, settling at $4.470 per mmBtu (+5.4%).
Of the nine agricultural contract prices we report, seven fell and two rose. Those that weakened were soybeans at $15.90¼ (-0.7%), coffee at $2.3865 (-3.0%), cocoa at $2,614 (-1.0%), sugar at 17.60¢ (-0.1%), cotton at $118.63 (-2.1%), live cattle at 141.925 (-2.7%) and lean hogs at 103.675 (-5.2%). Those in the black were corn at $6.59½ (+0.8%) and wheat at $8.43 (+5.8%).
Futures Referenced in Market Recap
|NYMEX||ULSD (Heating Oil)||March|
|LME||Aluminum||3 Mo. Forward|
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