Lingering concerns over Ukraine and oil prices, along with an impending Federal Reserve decision, led to a volatile session on Tuesday, with stocks ultimately finish lower. The S&P 500 slid 0.7%, adding to yesterday’s selling and recording its first close below 4,200 since the middle of last year.
As major averages fell, the focus on energy prices caused investors to flock to solar stocks. ReneSola (NYSE:SOL)Maxeon Solar (NASDAQ: MAXN)Sunworks (NASDAQ: SUNW) and Sun Power (NASDAQ: SPWR) all posted gains of at least 18%.
Petco Health and Wellness (NASDAQ: WOOF) also bucked the overall negative trend on Wall Street. Earnings news sent the stock higher. dollar tree (NASDAQ: DLTR) pushed higher as well, climbing to a new 52-week high.
Looking down, DiDi Global (NYSE:DIDI) fell on renewed concerns about Chinese regulatory pressure. Meanwhile, Amazon (NASDAQ:AMZN) slid to a new low, adding to recent weakness.
Focus on the sector
The massive rise in oil prices that has occurred since Russia’s invasion of Ukraine has shone a spotlight on other energy sources. This process continued on Tuesday, with solar stocks posting significant gains on the session.
ReneSola (SOL) was one of the best performers in the group with an increase of almost 37%. This adds to a 10% lead recorded in the previous session, taking the stock to its highest level since mid-November.
Meanwhile, Maxeon Solar (MAXN) climbed almost 24%, while Sunworks (SUNW) posted a gain of around 20%. SunPower (SPWR) finished up almost 19%.
An upbeat forecast included in its fourth quarter earnings report sparked buying in Petco Health and Wellness (WOOF). Boosted by the news, shares jumped 8%.
The pet supplies retailer beat fourth quarter expectations with its up and down results. Revenue rose nearly 13% to $1.51 billion.
Looking ahead, the company forecast adjusted earnings for 2022 of $0.97 to $1.00 per share, with revenue between $6.15 billion and $6.25 billion. Both forecasts beat Wall Street expectations, with analysts looking for net income of $0.90 per share on revenue of about $6.1 billion.
WOOF posted a $1.42 session lead, ending the day at $19.11. The stock remains within a trading range that has held it so far in 2022. Overall, the stock is down about 15% over the past six months.
DiDi Global (DIDI) fell sharply after investors received a reminder that the China-based ride-hailing service is operating under a regulatory cloud. The stock fell more than 11% during the session.
The selling spree came amid reports that Ant Group’s highly anticipated IPO will be delayed indefinitely due to China’s continued crackdown on tech companies.
DIDI, which went public last year, has since faced significant regulatory scrutiny in China, forcing it to plan for delisting in the United States and move its stock operations to Hong Kong.
DIDI ended at $3.55, down 44 cents on the day. The stock remains in a trading range near its 52-week low of $3.33. In total, DIDI is down about 75% from its IPO price of $14 per share.
Notable new peak
Buoyed by a general rebound in the retail sector, Dollar Tree (DLTR) staged a 4% rally on Tuesday, taking the stock to a new 52-week high.
Going into Tuesday’s trading, DLTR had slipped over the previous two days, driven by an overall selling frenzy among retailers. The sector has seen weakness on fears that high commodity prices will reduce consumers’ ability to spend.
Even so, DLTR has held up better than most other retail spaces. Investors bet the low-cost provider would become a go-to shopping spot for low-income customers looking for deals in an inflationary environment.
DLTR climbed $5.94 on Tuesday to close at $146.80. During the session, the stock hit a 52-week intraday high of $151.28. The stock has generally traded in a range since November. Shares have soared nearly 61% in the past six months.
New notable low
Amid general geopolitical and economic uncertainty, Amazon (AMZN) has recently lost ground. Tuesday’s session saw shares of the online retailer add to their recent weakness and extend their 52-week low.
AMZN fell about 1% on the session, closing at $2,719.86. This is on top of a recent drop, including a drop of almost 6% the previous day. Tuesday marked the stock’s sixth-lowest finish in the past seven sessions.
During the day, the AMZN reached $2,671.45, setting a new 52-week intraday low. It was the first time the stock had fallen below $2,700 since June 2020.
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