Reacting to Russia

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What's Happening Today

Good morning! It's Kristin with your daily morning digest.

Russia has invaded Ukraine. President Joe Biden pledged to impose more sanctions against Russia for its "aggression," and will meet with G7 leaders today to discuss additional measures. Markets plunged in response, as investors pulled money out of stocks and into bonds, gold, and commodities. Energy markets—particularly oil—have been reacting to the conflict, with oil prices leaping above $100 a barrel, the highest they've been since 2014.

The number of people filing for unemployment for the first time dropped to 232,000 last week, reversing much of the previous week's rise. There are concerns that the latest surge in the omicron variant of COVID-19 will appear in February's jobs report, after January's report showed resilience and strength in the labor market.

And revised economic data shows that the U.S. economy grew slightly more than previously thought, with gross domestic product (GDP) jumping 7% in the last quarter of 2021. An earlier estimate from the Bureau of Economic Analysis had suggested that GDP grew 6.9% in the fourth quarter. Last year was the strongest year for the U.S. economy since 1984, but don't expect that pace to continue in 2022.

- Kristin

Editors' Picks

Jobless Claims Get Back on Track, New Home Sales Drop (The Balance)

Why Russia and Ukraine Matter to the Stock Market (The Balance)

Inflation Threatens To Erode Impact of $1 Trillion Infrastructure Law (The Wall Street Journal)

SALT Alternative Takes Shape as Democrats Move Past Biden Plan (Bloomberg)

IRS Offers Optional Verification for Online Accounts (The Balance)

Off the Charts

Rising interest rates are discouraging mortgage borrowing, and it's not just refinancing. The volume of overall mortgage applications has fallen sharply, hitting its lowest point since December 2019 last week, according to the Mortgage Bankers Association's index of mortgage activity.

Number of the Day

$5.36 - That's the average the Tooth Fairy now pays per tooth, according to a newly released poll—a record high since the poll began in 1998.

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