Dow Jones futures dived more than 650 points on Wednesday morning. credit Suisse ,C) fell 28% after the company’s biggest investor, the Saudi National Bank, reportedly withdrew funds. The decline in bank stocks quickly spread to other financials, leading to sharp declines in UK and Europe markets. Meanwhile, a key US inflation gauge, the producer price index, fell unexpectedly in February.
SPDR S&P Regional Banking ETF (kre) sold off nearly 3% Wednesday morning after Tuesday’s 2.1% rebound. The selloff was not as sharp as the financial crashes seen on Friday and Monday. But this time around the big banks, especially those with broad international exposure, appeared to lead the initial decline. Bank of America ,BAC) slipped 3.6%. JP Morgan ,jpm) fell 2.6%. And Wells Fargo ,wfc) fell 4.1% in premarket trade.
PPI Inflation Report
Early Wednesday, the Labor Department’s PPI fell 0.1%, compared with a 0.3% annual increase in February and a 5.4% annual increase of 4.6%. The index tracks the prices received by producers for goods and services. The core PPI, which excludes prices derived for energy and food, was flat in the month with an annual increase of 4.4% versus an expected monthly increase of 0.4% and a 5.2% annual increase.
Meanwhile, retail sales came to the fore from the Department of Commerce. Sales fell 0.4% in February, in line with estimates versus January’s 3.0% jump. A light read on the selling could potentially come into play on next week’s rate hike from the Federal Reserve.
On the earnings front, homebuilders lenar ,lane) rose 2.5% after the company posted better-than-expected first-quarter results. The shares are forming a flat base with a buy point of 109.38.
Academy Sports & Outdoors ,aso, adobe ,adbe, dollar general ,dg, FedEx, ,FDX) And five down ,five) are also due to expire this week.
stock market today
Electric-Vehicle Leader Tesla ,TSLA) traded down 2% on Wednesday morning. Meanwhile, Dow Jones tech giant Apple ,AAPL) And Microsoft ,msft) were down sharply before the stock market opened.
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 watch in the ongoing stock market correction.
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.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Wednesday’s opening bell, Dow Jones futures were down 2%, S&P 500 futures down 2.1%, with banks posting heavy losses freeport mcmorran ,fcx, Carnival Cruises ,ccl) And Kotera Energy ,ctra,
Nasdaq 100 futures, which do not track financials, lost 1.7% in morning action.
US exchange-traded funds include the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1.4% and the SPDR S&P 500 ETF (Spy) was down 1.7% in early Wednesday trading.
The 10-year US Treasury yield reached 3.63% on Tuesday. Investors flocked back to bonds early Wednesday, pushing the 10-year Treasury yield to 3.51% in morning trading.
Tuesday’s sharp losses saw oil prices drop below $70 a barrel for the first time since December 2021. Energy Information Administration distributes weekly oil inventory data at 10:30 a.m. ET
stock market correction
The Dow Jones Industrial Average rose 1.1% and the S&P 500 rose 1.65% on Tuesday. The tech-heavy Nasdaq Composite closed up about 2.1% after buying.
Tuesday’s Big Picture column commented, “Tuesday was the second day of a rally attempt for the Nasdaq Composite and the first day of a rally attempt for the S&P 500. Even though the price action in individual growth stocks looks much better, The market still needs to prove itself.”
In the midst of the new stock market correction, now is an important time to read IBD’s The Big Picture column.
5 Dow Jones Stocks to Buy Now and See
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. NKE stock was down 2.3% in early trading Wednesday.
Despite Tuesday’s gains, the stock remained 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. Those gains quickly disappeared during last week’s losses, but the stock is now trading above its $178.94 cup-with-handle entry this week. Nevertheless, the market is in a correction, so investors should avoid fresh buying until the market environment improves. CRM stock fell 1.4% on Wednesday.
3 Top Growth Stocks to Watch stock market correction
Top Stocks to Watch: Meta, Palo Alto, New Relic
Facebook-parent Meta Platforms rallied from an early entry at 190.46 and is rapidly reaching a 197.26 buy point on a flat base after earnings-fuelled price increases in February. Shares are about 2% away from the latest buy point, as they soared 7.25% on Tuesday. Meta shares were off 1.5% on Wednesday morning.
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 down 1.3% on Wednesday.
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 at 80.98 buy point basis after 8th February. The RS line is on hold for now. NEWR stock slipped 3% in early trading Wednesday.
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.
Learn to Time the Market with IBD’s ETF Market Strategy
Stocks to watch in stock market correction
These are the four top stocks to watch in today’s stock market, including two of the Dow Jones leaders.
|company’s name||Sign||right purchase point||type of buy point|
|meta platform||,meta,||197.26||flat base|
|Palo Alto Networks||,panw,||192.94||cup with handle|
|sales force||,crm,||178.94||cup with handle|
Source: IBD data as of March 13, 2023
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Tesla stock gained 5% on Tuesday, rising for a third straight day and continuing to rally after finding support at its 50-day moving average line. The stock closed nearly 52% from its 52-week high on Tuesday.
TSLA stock was down 2% on Wednesday morning, threatening to give up a portion of Tuesday’s gains.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones shares, Apple’s shares rose 1.4% on Tuesday, extending this week’s rebound from the long-term 200-day line. AAPL declined 1.2% on Wednesday morning.
Microsoft shares moved further above their 200-day line after Tuesday’s 2.7% jump. The stock is still about 20% away from its 52-week high after the recent decline. MSFT stock fell 1.6% in early trading Wednesday.
Be sure to follow Scott Lehton on Twitter @IBD_SLehtonen For more information on Growth Stocks and the Dow Jones Industrial Average.
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