Stocks weren’t doing all that much Monday as markets digest last week’s large gains and the price of oil keeps rising.
Dow Jones Industrial Average
was down 45 points, or 0.1%, while the
was up 0.2% and the
Composite was 0.1% lower. These moves come after the three indexes had their best weeks since November 2020.
Investors, flush with cash, had been in dip-buying mode last week. Markets have digested that the Federal Reserve is expected to lift interest rates six more times this year to combat inflation, a move that will drag economic growth downward. Meanwhile, some encouraging headlines on diplomatic progress between Russia and Ukraine had offered investors encouragement.
“A near-term hope trade has emerged,” wrote Dennis DeBusschere, founder of 22VResearech.
Now, investors are trying to figure out what happens next. Oil might provide a clue Monday, West Texas Intermediate crude gained just over 4% to around $109 a barrel, and is now up more than 45% in 2022. That’s not helping a stock market that has had a difficult time seeing a sustained rally this year.
Even after last week’s rally, the S&P 500 finds itself near the 4,450 level, below the 4,600 level that put a ceiling on markets in February. Breaking that level could determine whether the current rally has legs or is just a bear-market bounce. “Near-term overbought conditions while weekly and monthly momentum remain negative create a difficult spot to chase this rally,” wrote Fundstrat technician Mark Newton. “More conviction is needed.”
The point is that there’s a lot more on the economic growth front that markets need to assess and quantify from here, bringing about some uncertainty. “On the direction of the economy, the trajectory will slow,” wrote Peter Boockvar, chief investment officer at Bleakley Advisory. “What has not been priced in yet fully to stocks, because we just don’t know yet, is the economic impact of this rate move as the economy responds gradually to the new reality.”
The picture was mixed overseas, where Frankfurt’s
was flat and Tokyo’s
Here are seven stocks on the move Monday:
) fell 2.5% following news that the chief financial officer at the German software group would resign. Luka Mucic will continue in his role into next year.
(BRK.A and BRK.B) agreed to buy reinsurer
(Y) for $848.02 a share in cash, or about $11.6 billion. The deal represents a 29% premium to Alleghany’s average stock price over the last 30 days, the companies said in a statement. Berkshire’s Class B stock was up 1.7%, while Alleghany stock shot up 26%.
Private-equity group Thoma Bravo has agreed to buy business planning software-maker
stock for the five days ended March 18, the companies said in a statement. Anaplan stock soared 28%.
(BB), known as a “meme stock,” gained 3.1% after getting upgraded to Sector Perform from Underperform at RBC.
Write to Jack Denton at firstname.lastname@example.org