With the news of a Russian attack on Ukraine, Dow Jones futures plunged -2.14%.
Why this matters: Russia-Ukraine tensions continue to weigh on investors’ minds but that may not be what is at play here. Many strategists argue that investors are selling their risky assets due to the likelihood of an increase in interest rate from the Feds. The Feds will be raising its rate in March for the first time since the COVID-19 struck in the US. (Yahoo).
Elon Musk is at it again
Despite news of expansion to Shanghai for cheaper production costs, Tesla’s stock has dropped 7%.
Why it matters: The automaker shares have also dropped more than 17% in the past week, which is more than the broader market. The controversial CEO, Elon Musk, seems to have picked a fight with the Securities and Exchange Commission (SEC) on Twitter and this is causing a distraction, as investors don’t like distractions. (Barron)
Rio Tinto pays its highest-ever dividend
Rio Tinto (RIO), the world’s second-largest miner announced 2021 earnings at $21.38 billion – a whopping 72% jump from 2020.
Why this matters: The world’s top iron-ore producer definitely benefited from last year’s iron-ore prices. The company announced it would pay a total $10.40 per share, which includes a special $2.47 representing a payout of underlying earnings. These earnings meet analysts’ review, as they had estimated it from the increase of industrial production in the global economy. (Barron)
That’s it from us today,
See you tomorrow.