US open: Major indices lower as oil prices continue to rise

Major indices registered losses at the opening bell on Tuesday as market participants remained cautious following yesterday's selloff driven by elevated oil prices.

As of 1525 GMT, the Dow Jones Industrial Average was down 0.60% at 32,621.29, while the S&P 500 was 0.71% softer at 4,171.17 and the Nasdaq Composite came out the gate 0.94% weaker at 12,710.30.

The Dow opened 196.09 points lower on Tuesday, extending losses recorded in the previous session after oil prices surged to a multi-year high amid the ongoing Russia-Ukraine war, heightening fears the conflict will slow the US economy and raise inflation.

West Texas Intermediate prices, which ended the previous session 3.2% higher, were up 4.97% in early trading at $125.34 per barrel, while international benchmark Brent crude, which hit its highest price since July 2008 on Monday, was another 5.36% higher at $129.82 a barrel.

The increased commodity prices come as market participants continue to monitor developments of escalated geopolitical tensions between Ukraine and Moscow, with the former stating Moscow was attempting to manipulate the pair's ceasefire arrangement by allowing Ukrainian civilians to only evacuate to either Russia or Belarus.

The White House has also updated president Joe Biden's schedule to include the announcement of additional steps that Washington will enact to "hold Russia accountable for its unprovoked and unjustified war on Ukraine" at 1545 GMT. As part of his remarks, Biden is expected to ban imports of Russian oil to the country.

Treasury yields were also higher early on Tuesday, with the yield on the benchmark 10-year Treasury note up nearly ten basis points and sitting at around 1.861% as traders looked to shed bonds amid escalating inflationary concerns.

On the macro front, the National Federation of Independent Business' small business optimism index declined for a second consecutive month in February, dropping to 95.7, down from 97.1 in the previous month to the lowest seen since January 2021.

"Inflation continues to be a problem on Main Street, leading more owners to raise selling prices again in February. Supply chain disruptions and labor shortages also remain problems, leading to lower earnings and sales for many”, said NFIB chief economist Bill Dunkelberg.

Elsewhere, the US trade deficit widened to a record high of $89.7bn in January, up from an upwardly revised $82.0bn for December 2021 and ahead of market expectations for a print of $87.1bn. According to the Bureau of Economic Analysis, the heightened deficit comes as a result of an increased goods deficit of $7.1bn to $108.9bn, with soaring energy costs pushing imports to a record high and dragging the services surplus to $19.2bn. Imports increased 1.2% to a new record high of $314.1bn, while exports fell 1.7% to $224.4bn.

Lastly, wholesale inventories advanced 0.8% month-on-month to $799.9bn in January, according to the Census Bureau, bang in line with preliminary estimates and following an upwardly revised 2.6% increase in December. The advance marked the 18th consecutive month of gains, driven by increases in inventories of both durable and nondurable goods. On an annualised basis, wholesale inventories advanced 18.1% in January.

In the corporate space, US retailer Dick's Sporting Goods reported a record fourth-quarter showing on Tuesday and said it expects to see even more profit momentum following the all-important holiday trading period.

Dow Jones - Risers

Caterpillar Inc. (CAT) $205.82 4.64%
Chevron Corp. (CVX) $169.38 4.53%
Home Depot Inc. (HD) $324.88 0.65%
Walgreens Boots Alliance, Inc. (WBA) $47.28 0.62%
McDonald's Corp. (MCD) $225.26 0.41%
3M Co. (MMM) $143.42 0.10%
Honeywell International Inc. (HON) $230.94 0.00%
Dowdupont Inc. (DWDP) $30.52 0.00%
Travelers Company Inc. (TRV) $169.67 -0.07%
Dow Chemical Co. (DOW) $57.81 -0.28%

Dow Jones - Fallers

Procter & Gamble Co. (PG) $148.02 -3.15%
Walt Disney Co. (DIS) $129.61 -2.91%
Unitedhealth Group Inc. (UNH) $474.54 -2.53%
Microsoft Corp. (MSFT) $272.09 -2.45%
Salesforce.Com Inc. (CRM) $192.62 -1.84%
Verizon Communications Inc. (VZ) $53.76 -1.67%
Coca-Cola Co. (KO) $60.08 -1.65%
American Express Co. (AXP) $156.68 -1.54%
Cisco Systems Inc. (CSCO) $54.76 -1.48%
Amgen Inc. (AMGN) $230.97 -1.45%

S&P 500 - Risers

National Oilwell Varco Inc. (NOV) $23.53 11.04%
HollyFrontier Corp (HFC) $31.78 8.32%
Valero Energy Corp. (VLO) $90.10 7.25%
FMC Technologies Inc. (FTI) $8.21 7.18%
Schlumberger Ltd. (SLB) $45.01 6.91%
Apache Corp. (APA) $40.21 6.03%
Halliburton Co. (HAL) $38.23 5.49%
Fluor Corp. (FLR) $27.77 5.03%
Phillips 66 Common Stock (PSX) $86.50 4.72%
Caterpillar Inc. (CAT) $205.82 4.64%

S&P 500 - Fallers

Intuitive Surgical Inc. (ISRG) $275.78 -5.78%
Fortinet Inc. (FTNT) $274.97 -5.63%
Align Technology Inc. (ALGN) $415.30 -4.65%
CME Group Inc. (CME) $225.82 -4.20%
Intercontinental Exchange Inc (ICE) $126.90 -4.15%
ConAgra Brands Inc (CAG) $32.32 -4.09%
Edwards Lifesciences Corp. (EW) $104.16 -3.87%
General Mills Inc. (GIS) $65.14 -3.74%
Boston Scientific Corp. (BSX) $40.97 -3.70%
Arconic Inc. (ARNC) $23.73 -3.61%

Nasdaq 100 - Risers

Dollar Tree Inc (DLTR) $146.84 4.24%
Dish Network Corp. (DISH) $30.67 4.09%
Fastenal Co. (FAST) $55.05 1.76%
Sirius XM Holdings Inc (SIRI) $6.47 1.49%
Automatic Data Processing Inc. (ADP) $211.24 1.37%
Qurate Retail Inc. (QRTEA) $4.76 1.28%
NetEase Inc. Ads (NTES) $82.79 1.20%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $354.53 1.05%
Intuit Inc. (INTU) $441.62 0.97%
Marriott International - Class A (MAR) $149.41 0.91%

Nasdaq 100 - Fallers

JD.com, Inc. (JD) $56.57 -6.53%
Intuitive Surgical Inc. (ISRG) $275.78 -5.78%
Align Technology Inc. (ALGN) $415.30 -4.65%
Baidu Inc. (BIDU) $132.64 -4.14%
Mercadolibre Inc. (MELI) $919.53 -4.00%
J.B. Hunt Transport Services Inc. (JBHT) $193.64 -3.16%
Workday, Inc. (WDAY) $217.41 -3.12%
NortonLifeLock Inc. (NLOK) $27.47 -3.10%
Nvidia Corp. (NVDA) $207.18 -2.97%
Cadence Design Systems Inc. (CDNS) $146.05 -2.89%