Futures Blended After Unemployment Claims; First Republic falls

Dow Jones futures fell Thursday morning after a surprise drop in weekly initial jobless claims from the Labor Department. Landesbank First Republic (FRC) then crashed by 31% Bloomberg reports The company is “assessing strategic options, including a sale.”


The SPDR S&P Regional Banking ETF (KRE) declined another 1.4% to add to Wednesday’s 1.6% loss. Other regional banks were also lower but not as strong as in previous sessions. Western Alliance (WHALE) crashed by almost 9% keycorp (BUTTON) declined by 1.6%.

Further, CreditSuisse (CS), which sparked early stock market losses on Wednesday, then recovered 5.5% Receiving a $53 billion lifeline from the Swiss Central Bank.

Economic data, result

Weekly initial jobless claims fell to 192k, much less than the expected drop to 205k from 211k the previous week. Meanwhile, Commerce Department housing starts rose more-than-expected to 1.450 million in February versus 1.309 million in January. Building permits, a measure of upcoming construction activity, also rose more-than-expected to 1.524 million in February versus 1.339 million in January.

Finally, the Philadelphia Federal Reserve Manufacturing Index remained down at -23.2, up slightly from February’s -24.3.

On the earnings front Academy Sport & Outdoor (ASO), Adobe (ADBE), Dollar General (DG) And five below (FIVE) were key earnings reporters early Thursday.

Academy is up more than 4% in premarket trading, while Adobe is up 5.4% early Thursday after the hit Wall Street sales and earnings targets higher forecast for fiscal first quarter and full year.

Dollar General slid 1% following its Q4 results, while Five Below slipped 3% after reporting a disappointing full-year outlook late Wednesday.

stock market today

Market leader in electric vehicles Tesla (TSLA) was trading a fraction higher on Thursday morning. Tech giants Dow Jones too Apple (AAPL) And Microsoft (MSFT) were slightly higher ahead of today’s stock market open.

chip leader Advanced mic Devices (AMD), IBD SwingTrader stock meta platforms (META) and IBD Leaderboard Watch List Palo Alto Networks (PANW) – as well as Dow Jones stocks Nike (NKE) And Foreclosure (CRM) – are among the top stocks to watch in the ongoing stock market correction.

Palo Alto is a IBD Leaderboard watchlist stock. AMD was featured in Wednesday’s IBD Screen of the Day. And Nike was featured in this week’s “Stocks Near a Buy Zone” column. Meta is an IBD SwingTrader stock.

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Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Thursday’s opening bell, Dow Jones futures are down 0.25% from fair value, while S&P 500 futures are down 0.2%. Nasdaq 100 futures, which does not track financials, rose 0.1% in morning action with Adobe leading the rise.

Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 0.3% and the SPDR S&P 500 ETF (SPY) fell 0.3% early Thursday.

The US 10-year Treasury yield fell to 3.49% on Wednesday as investors rushed back into bonds while Credit Suisse amplified concerns in the financial sector. On Thursday, the 10-year Treasury yield ticked lower to 3.44% in morning trade.

US oil prices stayed below $68 a barrel after heavy losses on Wednesday as West Texas Intermediate traded at its lowest level since December 2021.

stock market correction

On Wednesday, the Dow Jones Industrial Average ended the session down 0.9%, while the S&P 500 lost 0.7%. The Nasdaq composite ended nearly flat, supported by Big Tech’s unbanked strength. The small-cap index Russell-2000 was the worst performer, losing 1.7%.

Wednesday’s Big Picture column commented: “IBD lowered its outlook to “market in correction” last week in recognition of weak price action in equity markets fueled by the banking crisis. Now is the time to raise cash and avoid falling knives as prices could fall sharply lower. However, it also makes sense to create watch lists of the strongest performers as they could lead the upside if positive catalysts return.”

Now is an important time to read IBD’s The Big Picture column amid the new stock market correction.

Five Dow Jones stocks to buy and watch

Keep an Eye on Dow Jones Stocks: Nike, Salesforce

Since their Oct. 3 bottom, Nike shares are up as much as 59% to a recent high of 131.31. Now the stock is consolidating within a flat base that offers a buy point of 131.41 according to pattern recognition by IBD MarketSmith. NKE shares fell 0.7% early Thursday.

After recent declines, the stock remains below its 50-day moving average, a key benchmark. A crucial replay would be bullish for the base building outlook and would cut the right side of the pattern. The line of relative strength is also holding up well during the rapidly evolving stock market correction.

For the past few weeks, Dow Jones leader Salesforce has shown major bullishness after strong fourth-quarter results. Those gains quickly faded during last week’s losses, but now the stock is back above a cup-and-handle entry of 178.94 this week. Nonetheless, the market is in a correction and investors should avoid new purchases until the market environment improves. CRM stock fell 0.7% on Thursday.

3 Top Growth Stocks to Watch stock market correction

Top stocks to watch: AMD, Meta, Palo Alto

Advanced Micro Devices broke above a buy point of 89.04 on a flat basis during Wednesday’s 2.55% breakout move. The shares closed in the buying range which ends at 93.49. AMD was featured in IBD’s Screen Of The Day column on Wednesday. AMD shares rose 0.45% Thursday morning.

Backstory: In early February, the chipmaker reported stronger-than-expected fourth-quarter data center chip sales. But AMD tempered that news with a soft forecast for the current period.

Backstory: Like its social media peers, Meta is grappling with a sharp drop in ad revenue as customers squirm over macro concerns, recession fears, and higher interest rates. It does so as it spends billions of dollars on a risky bet to build the “Metaverse,” a virtual reality world that has yet to catch on.

IBD Leaderboard Watchlist stock Palo Alto Networks continues to trade quietly in a grip after the stock rose 12.5% ​​on Feb. 22. Shares remain within striking distance of the buy point from a 192.94 basis. PANW shares traded 0.1% lower on Thursday.

Backstory: On Feb. 21, the cybersecurity giant announced strong results for the quarter ended January, during which earnings hit $1.05 per share, up 81% year over year on a 26% jump in revenue to 1 $.7 billion.

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Stocks to watch during the stock market correction

These are four top stocks to watch in today’s stock market, including two top Dow Jones stocks.

Company NamesymbolCorrect purchase pointType of purchase point
meta platforms (META)197.26flat base
Nike (NKE)131.41flat base
Palo Alto Networks (PANW)192.94Cup with handle
Foreclosure (CRM)178.94Cup with handle
Source: IBD data as of March 15, 2023

Join IBD experts as they analyze leading stocks in the latest stock market correction on IBD Live

Tesla stock

Tesla stock slipped 1.5% on Wednesday, breaking a three-day winning streak. Still, stocks are holding above their key 50-day moving average. Shares closed about 53% below their 52-week high on Wednesday.

TSLA shares rose 0.5% Thursday morning, looking to recover from Wednesday’s losses.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 0.3% on Wednesday, contributing to this week’s rebound from the 200-day long-term moving average. AAPL was up 0.1% on Thursday morning.

Microsoft stock continued to move above its 200-day moving average after rallying 1.8% on Wednesday. MSFT stock is now showing a fresh buy point at 276.86 on the flat base forming. The stock is still around 16% off its 52-week high. MSFT shares gained 0.1% early Thursday.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


Top growth stocks to buy and watch

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