US close: Stocks end session sharply lower as Russian convoys move toward Kyiv

dl nyse new york stock exchange wall st street city finance dow jones nasdaq sp finance dollar dollars us usa united states of america 2 — New York Stock ExchangeSharecast photo / Josh White

Wall Street stocks ended the session firmly in the red on Tuesday as market participants continued to monitor the ongoing conflict between Russia and Ukraine after satellite cameras allegedly captured images of a convoy of Russian military vehicles en route to the Ukrainian capital of Kyiv.

At the close, the Dow Jones Industrial Average was down 1.76%% at 33,294.95, while the S&P 500 was 1.55% weaker at 4,306.26 and the Nasdaq Composite saw out the session 1.59% softer at 13,532.46.

The Dow closed 597.65 points lower on Tuesday, extending losses recorded in the previous session as Russian and Ukraine officials arrived at the border to discuss potentially calling a stop to hostilities between the two sides.

Although Russian and Ukrainian emissaries wrapped up a critical round of talks on Monday, a roughly 65.0km long convoy of Russian military vehicles was caught by US firm Maxar Technologies' satellite heading toward Kyiv, indicating that Moscow may actually be upping the ante in the invasion of its western neighbour.

The image appears to show a convoy of Russian armoured tanks and trucks that stretches from Pybirsk to the Antonov airport, the site of fighting last week between Russian and Ukrainian forces. Official sources have not yet confirmed the existence of the convoy.

On the macro front, the seasonally adjusted IHS Markit US manufacturing purchasing managers' index posted 57.3 in February, up from 55.5 in January and only slightly lower than the earlier released flash estimate of 57.5. While the headline figure was below peaks seen in 2021, it signalled a stronger upturn in the health of the manufacturing sector, with sharper output and new order expansions both contributing to overall growth.

Elsewhere, the Institute for Supply Management's manufacturing PMI rose for a second straight month to 58.6 in February, up from 57.6 in January and ahead of market forecasts of 58, as Covid-19 infections eased off.

In the corporate space, department store operator Kohl's issued better-than-expected guidance early on Tuesday as margins looked set to withstand supply chain disruptions, while big-box retailer Target said same-store fourth-quarter sales had grown 8.9% despite supply chain pressures and said it expects to see revenue growth in the mid-single-digits and adjusted earnings per share in the high single-digits from fiscal 2023 onwards.

Fast food giant Wendys beat on profits, revenue and same store sales, and also provided some upbeat full-year guidance, while Domino's Pizza shares headed south after the company posted weak fourth-quarter results and announced the retirement of its chief executive.

Dow Jones - Risers

Chevron Corp. (CVX) $149.72 3.97%
Home Depot Inc. (HD) $320.25 1.40%
Walmart Inc. (WMT) $136.03 0.64%
Unitedhealth Group Inc. (UNH) $476.62 0.16%
Dowdupont Inc. (DWDP) $30.52 0.00%
Honeywell International Inc. (HON) $230.94 0.00%
Verizon Communications Inc. (VZ) $53.65 -0.05%
Merck & Co. Inc. (MRK) $76.39 -0.25%
Johnson & Johnson (JNJ) $164.00 -0.35%
Coca-Cola Co. (KO) $62.02 -0.35%