Skip to Content
Market Update

Markets Review/Preview: CPI Ahead; Earnings Wind Down

Oil tops $116, Occidental and Kroger hit new highs. Travel and European bank stocks continue to slip.

Mentioned: , , , , , , , , ,

The roller-coast ride for financial markets triggered by Russia’s attack on Ukraine looks likely to continue, having added a new wrinkle to inflation concerns ahead of an all-but-certain interest-rate hike later this month by the Federal Reserve.

The latest measure of U.S. inflation, which is now at a 40-year high, will come when the government releases February’s consumer price index report Thursday. The data is expected to show that inflation remained elevated even before the surge in commodity prices sparked by Russia’s attack. 

Oil, wheat, and gas all hit multiyear highs in the past week, with crude briefly rising to more than $116 per barrel. Saudi Arabia’s energy minister and the head of Saudi Aramco, the country’s national oil company, are scheduled to speak at a conference this coming week.

Fourth-quarter earnings reports will tail off, with most major companies having already reported.

Among the expected earnings reports:

  • Tuesday: Prudential (PUK)
  • Wednesday: Adidas (ADDYY), Crowdstrike (CRWD), Marqeta (MQ)

Walt Disney’s (DIS) investor day is also scheduled for Wednesday.

For the trading week ending March 4:

  • The Morningstar US Market Index slid 1.6%.
  • The best-performing sectors were Energy up 9.6%, and Utilities 4.4%.
  • Financial service stocks were dropped 5.6%.
  • Yields on the U.S. 10-year Treasury note fell to 1.73% from 1.98%.
  • Oil ended the week up more than 26% to close at $115.68 per barrel.
  • Of the 861 U.S.-listed companies covered by Morningstar 318, or 37%, rose, and 541, or about 67%, fell.

Advancers:

Best-performing stocks in the past week were Occidental Petroleum (OXY), Kroger (KR) Albertsons Companies (ACI), Sociedad Quimica Y Minera (SQM), and Mosaic (MOS).

Oil companies gained on rising prices, which briefly hit $116 per barrel for the first time since 2008. Occidental rose 44.9%, hitting a 52-week high, and Liberty Oilfield (LBRT) rose 19.2%. APA (APA) and Continental Resources (CLR) also closed higher.

Grocers Kroger and Albertsons rallied, with Kroger rising 26.9% after beating estimates and giving an upbeat outlook for the rest of this year. Albertsons’ shares rose 21.7% after the company said it would undergo a strategic review of its business. Retailers Nordstrom (JWN), Target (TGT), and Best Buy (BBY) also gained.

Decliners:

The week's worst-performing stocks were Telecom Italia (TIIAY), Viatris (VTRS), Farfetch (FTCH), Societe Generale (SCGLY), and Groupon (GRPN)

Concerns over Russian exposure continued to hurt European bank stocks. Societe Generale fell 27.5%. Intesa Sanpaolo (ISNPY) and Ing Groep (ING) were also down.

European auto shares were hit on fallout from the war. Volkswagen (VWAPY) was down 24.5%, Stellantis (STLA) fell 21.5%, and BMW (BMWYY) slumped 20%. 

Travel stocks fell, with some of the biggest gainers in recent weeks sliding. Sabre (SABR) fell 22.7%, Carnival (CUK) down 19.3%, and Royal Caribbean (RCL) off 16.9%. Airlines United Airlines (UAL), Delta Airlines (DAL), and American Airlines (AAL) all closed lower on concerns about rising oil expenses.

Jakir Hossain does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.