Futures: Bank woes escalate ahead of CPI inflation report

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Dow Jones futures were higher ahead of Tuesday’s open as the banking crisis escalated with two major bank failures in recent days. ,SIVB) And signature bank ,SBNY, Meanwhile, Schwab stock fell 11% on Monday on rising liquidity fears, while Tesla shares soared after the company ramped up hiring at its Gigafactory in Texas. And GitLab broke 36% late in earnings.


Financial Crisis

SPDR S&P Regional Banking ETF (kre) dived over 12% on Monday even after some losses. This is on top of the 16% loss it suffered last week.

regional bank first republic ,FRC) crashed about 62%. keycorp ,key) dived 27.3%. And western alliance ,wall) fell 47%.

charles schwab ,schw) gripped by fears that the largest US brokerages would need to sell some of their bond holdings to cover deposit withdrawals. According to Dow Jones, Schwab stock’s decline at its worst point would be the largest percentage decrease on record (based on data going back to September 23, 1987).

Major US banks were also not spared from the sale Bank of America ,BAC, JPMorgan Chase ,jpm) And Wells Fargo ,WFC) falling 5.8%, 1.8% and 7.1% respectively.

CPI Inflation Report, Income

On the economic front, all eyes will be on the Consumer Price Index on Tuesday. The CPI overall and excluding food and energy, is expected to rise 0.4%. This would reduce the headline CPI inflation rate to 6% from 6.1% in January, while the core inflation rate would decline to 5.5% from 5.6%.

Wall Street suddenly sees a solid possibility that the Federal Reserve will pause its rate-hike drive at next week’s meeting as the failure of three banks stoked concerns about broader financial-sector stress.

Half-point moves are now off the table — just a week after Fed Chair Jerome Powell indicated that policymakers were prepared to hike rates at next week’s meeting by February’s quarter-point pace.

Now the sharp drop in Treasury yields is indicating a sudden skepticism about the economy’s strength. Even if the Fed doesn’t hold off next week, markets are betting that a rate cut is just around the corner.

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On the earnings front, gitlab ,gtlb) plunged 36% in extended trading after the company provided weaker-than-expected revenue guidance.

The earning streak continues at the end of the season this week. are in Academy Sports & Outdoors ,aso, adobe ,adbe, dollar general ,dg, FedEx, ,FDX, five down ,five) And lenar ,lane,

stock market today

The Dow Jones Industrial Average fell 0.3% on Monday and the S&P 500 lost 0.15%. The tech-heavy Nasdaq Composite climbed 0.45% in a day of volatile trading.

Electric-Vehicle Giants Tesla ,TSLA) traded up 0.6% on Monday. in dow jones stocks, Apple ,AAPL) increased 1.3% Microsoft ,msft) climbed 2.1% in today’s stock market action.

social media giant meta platform ,meta), IBD Leaderboard Watchlist Stock Palo Alto Networks ,panw) And new relic ,New) — as well as Dow Jones stocks Nike ,NKE) And sales force ,crm) — are among the top stocks to see a correction in the new market.

palo alto is a ibd leaderboard Watchlist Stocks. New Relic was the IBD Stock of the Day recently. And Nike was featured in this week’s Stocks Near a Buy Zone column.

3 top growth stocks to buy and watch currentlyRENT Stock Market Reforms

Dow Jones Futures Today: Oil Prices, Treasury Yields

Ahead of Tuesday’s opening bell, Dow Jones futures were up 0.3% and S&P 500 futures were up 0.2%. Nasdaq 100 futures were up 0.2% versus fair value. Remember that overnight action in Dow Jones futures and elsewhere will not necessarily translate into actual trading in the next regular stock market session.

The 10-year US Treasury yield fell to 3.51% on Monday, as safe-haven trading rallied bonds following the SVB collapse. Oil prices sold off on Monday after a brief rally on Friday. West Texas Intermediate futures slipped nearly 3% to trade below $75 a barrel.

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What to do in new stock market correction

With the stock market trending in a “market correction” after sharp losses in recent sessions, it is an important time to read IBD’s The Big Picture column.

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Friday’s Big Picture column commented, “IBD changed its market outlook to ‘Upward Pressure’ on Thursday. And after Friday’s selloff we’ve cut our outlook further to ‘Market in Correction’ This requires investors to avoid buying any stock and pivot to defensive trading, such as taking profits and minimizing losses.”

(see IBD stock list eg IBD 50 and Stocks Near a Buy Zone for additional stock ideas.)

Five Dow Jones stocks to watch now

Dow Jones Stocks to Watch: Nike, Salesforce

Since bottoming out on October 3, Nike shares have gained as much as 59% to their recent high of $131.31. According to IBD MarketSmith pattern recognition, the stock is now consolidating within a flat base that provides a 131.41 buy point.

Amidst the recent weakness, the stock is trading below its 50-day moving average, a key benchmark. A decisive retake for base-building prospects would be to accelerate to carve out the right side of the pattern. Relative strength lines are also holding well during a fast-paced stock market correction.

In recent weeks, Dow Jones leader Salesforce showed major upside strength after strong fourth-quarter results. But those gains have all but disappeared amid recent market weakness, and the stock now trades below its $178.94 cup-with-handle entry. Still, the stock’s recent strength is a reason to keep an eye on the software leader in the coming sessions.

Top Stocks to Watch: Meta, Palo Alto, New Relic

Facebook-parent Meta Platforms is quietly forming a flat base with a 197.26 buy point following an earnings-fuelled price hike in February. Shares are about 8% away from the latest buy point, as they rose 0.8% on Monday.

Back story: Like social media rivals, Meta is struggling due to a sharp drop in ad revenue as customers grapple with macroeconomic concerns, fears of a recession and higher interest rates. It’s happening because it spent billions on a risky bet to create the “metaverse,” a virtual reality world that hasn’t caught on yet.

ibd leaderboard Watchlist Stock Palo Alto Networks continues to trade quietly in a huddle following the stock’s 12.5% ​​jump on Feb. 22. The shares remain within striking distance of 192.94 buy point of the base. Bullishly, the relative strength line of the stock is at new highs, as the stock has increasingly outperformed the market average. PANW stock traded up 0.1% on Monday.

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Back story: On February 21, the cybersecurity giant announced strong results for the January-ended quarter, which saw earnings of $1.05 per share, up 81% versus a year earlier, on a 26% jump in revenue to $1.7 billion. .

Recent IBD Stock of The Day, New Relic, is trading on a flat base with 80.98 buy point after 8th February. The RS line is on hold for now. NEWR stock was down 0.7% on Monday.

back storyNew Relic offers a cloud-based suite of software products that enable organizations to collect, store, and analyze large amounts of data in real time. Customers gain greater visibility into their enterprise software to help them make data-driven decisions.

Join IBD experts as they analyze the top stocks in the current stock market rally on IBD Live

Tesla stock

Tesla stock climbed 0.6% on Monday as it continues to take some support around its 50-day moving average line. The stock closed about 55% off its 52-week high on Monday.

On Tuesday, weekly EV insurance registration data could be a key gauge for demand in the world’s biggest EV market amid a massive price war launched by Tesla.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones shares, Apple shares gained 1.3% on Monday, breaking a two-day losing streak and finding support at the long-term 200-day line.

Microsoft shares quickly regained their 200-day line during Monday’s 2.1% jump. The stock is still about 20% away from its 52-week high after the recent decline.

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