Corporate America condemns Russia — what that means for stock market: Morning Brief

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Monday, February 28, 2022

Corporate America is launching two of its own birds into Putin’s backyard for his invasion into Ukraine. Not airplanes, but one finger from each hand.

Here are the first round of actions from a host of multinational companies that began to trickle in over the weekend:

Transport giants FedEx and UPS have suspended shipments into Russia.

BP is divesting its 19.75% stake in Russian controlled oil company Rosneft. The move will come with a hefty $25 billion charge. BP has done business in Russia for three decades.

Intel and AMD have reportedly suspended chip shipments into Russia. A spokesperson for AMD was unable to comment to Yahoo Finance on the report. A spokesperson for Intel didn’t immediately return Yahoo Finance’s request for comment.

Expect more penalizing announcements from global companies in the week ahead, which no doubt will have a major impact on the Russian economy and way of life for its citizens.

But while this response and economic fallout unfolds, the market remains in a confused state (as seen in last week’s wild swings) as Wall Street offers up conflicting takes on what could happen next.

On the one hand, there are strategists such as BTIG’s Jonathan Krinsky who are unconvinced the lows are in despite last week’s late rally:

“The SPX undercut its January lows, something we have been looking for. However, it didn’t quite get down to 4,000, nor have we seen a 90% downside volume day this year. In the last 25 years the only time the SPX had a -10% decline without at least one 90% downside volume day was in the fall of 1999. Therefore, while it’s possible we have seen ‘the’ low for the market, it’s more probable that we have only seen ‘a’ low. As far as areas to buy, we find that groups exhibiting relative strength (Metals & Mining, Agriculture, Shippers, Select Healthcare) tend to be more fruitful going forward than trying to bottom fish in downtrends.”

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