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Stock Surge; Radio Shack Tumbles

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Stock Surge; Radio Shack Tumbles

Stocks surged on the open and held steady throughout the trading session. Equity markets globally were buoyed by news that the Russian military has pulled back, but issues remain and volatility will likely remain elevated.

News that Russian President Putin has recalled some troops back to their bases is seen as a conciliatory gesture by the Russian government. Equity bourses globally retraced nearly all of Monday’s response to the weekend developments. The US push for a more assertive response toward Ukraine was softened by Europe’s efforts for more diplomatic efforts.

Volatility will likely remain in the capital markets. At a press conference, Putin said his country has no need to use force against Ukraine but retains the right to consider all its options, and it has no intention of annexing Crimea.

In corporate news, RadioShack Corp. (NYSE:RSH) announced that it will close as many as 1,100 stores a fifth of its total, after a sharp drop in sales over the holidays left it with a loss of $400 million last year. The deep cuts underscore the difficulty the retailer of electronic parts and gadgets has had adapting to modern trends in the business. Shares in RadioShack fell 28% on the open after the company said its same store sales shrank by 19% over the holiday quarter. The company reported a $191.4 million loss in the period, much deeper than the $63.3 million loss a year earlier, as revenue fell 20% to $935.4 million.

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The Russell 2000 was the best performing index on Tuesday surging nearly 2.75% and notching up a new all-time high. Momentum on the index is robust with the MACD printing at its highest levels in the past 12 months. The RSI moved higher with price action and is printing near 69 which is on the upper end of the neutral range.

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