Futures mixed as First Republic crashes after dividend suspension

Dow Jones futures fell 275 points Friday morning as a regional bank Bank of the First Republic (FRC) plunged 22% after the company outlined its financial terms and suspended its dividend late Thursday. FedEx (FDX) rose nearly 12% on strong earnings results.


Late Thursday, First Republic said it was focused on reducing its borrowing and evaluating the size and configuration of its balance sheet going forward. The SPDR S&P Regional Banking ETF (KRE) is down 3.4% and was about to give back some of Thursday’s gains. Other regional banks also traded lower after Thursday’s rally. Western Alliance (WHALE) fell 8% during keycorp (BUTTON) declined by 2.4%. CreditSuisse (CS) were sold off nearly 9% in early morning trade.

A group of major US banks passed by earlier Thursday JP Morgan (JPM) pledged $30 billion for a joint rescue of First Republic Bank.

The University of Michigan’s March Consumer Sentiment Index is one of the final economic data points for this week. Wall Street expects a reading of 67.0 for the mid-month estimate.

On the earnings front FedEx (FDX) soared 11.7% in early morning trade after the company posted strong third-quarter corporate earnings along with a bullish EPS forecast late Thursday. The delivery giant lacked revenue. FedEx shares signaled a break above the buy point from a flat base of 217.49 in premarket trading.

stock market today

chip giant NVIDIA (NVDA) rose nearly 2% after Morgan Stanley upgraded the stock from equal weight to overweight with an elevated target price of 304.

Market leader in electric vehicles Tesla (TSLA) was trading down 0.5% on Friday morning. Tech giants Dow Jones too Apple (AAPL) And Microsoft (MSFT) were higher ahead of today’s 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 Friday’s opening bell, Dow Jones futures are down 0.9% from fair value, while S&P 500 futures are down 0.75%. Nasdaq 100 futures, which do not track financials, traded 0.3% lower in the morning session. A triple witch day of options and futures expiration means trading volume is likely to be higher than normal during Friday’s trading session.

Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.3% and the SPDR S&P 500 ETF (SPY) fell 0.7% early Friday.

The US 10-year Treasury yield rallied to 3.58% on Thursday, still on course for a big weekly loss amid the ongoing banking crisis. On Friday, the 10-year Treasury yield fell to 3.5% in morning trade.

US oil prices climbed back to $69 a barrel but remained down about 10% on the week as West Texas Intermediate headed for its worst week since early December.

stock market correction

On Thursday, the Dow Jones Industrial Average was up 1.2% and the S&P 500 was up 1.8%. The Nasdaq Composite rose 2.5%. Small-cap Russell 2000 shed recent weakness, rising 1.4%.

Thursday’s Big Picture column commented, “Despite the lack of crucial volume, Thursday’s action was bullish as a number of leading stocks continue to build and break out of proper buy points. Meanwhile, the Nasdaq moved above a trendline connecting a couple of highs back to February 2nd, another sign of strengthening market conditions.”

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 0.2% early Friday.

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 gained 0.1% early Friday.

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 this week’s gains and is now being extended beyond the 5% buy range which peaked at 93.49. AMD was featured in IBD’s Screen Of The Day column on Wednesday. AMD shares rose 1.2% on Friday 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 Palo Alto Networks stock is nearing the mug and handle buy point of 192.94 after rising 3.25% on Thursday. PANW shares traded 0.2% lower on Friday.

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 16, 2023

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

Tesla stock

Tesla shares gained 2% on Thursday, erasing Wednesday’s losses. Stocks continue to recover from their key 50-day moving average. Shares closed about 52% below their 52-week high on Thursday.

TSLA shares fell 0.5% on Friday morning as it struggled to defend Thursday’s gains.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 1.9% on Thursday, contributing to this week’s rebound from the 200-day long-term moving average. AAPL was up 0.1% on Friday morning.

Microsoft stock continued to move above its 200-day moving average after rallying 4.05% on Thursday. MSFT stock is close to a fresh buy point at 276.86 on the forming flat base. The stock is down about 13% from its 52-week high. MSFT shares gained 0.8% early Friday.

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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