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.
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:
Walt Disney’s (DIS) investor day is also scheduled for Wednesday.
For the trading week ending March 4:
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.
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.