Dow Jones futures fell 250 points Friday morning as regional banks First Republic Bank ,FRC) dived 20% after the company detailed its financials late Thursday and suspended its dividend. FedEx, ,FDX) grew nearly 12% due to strong earnings results.
Late Thursday, First Republic said it is focused on reducing its borrowings and evaluating the size and configuration of its balance sheet. SPDR S&P Regional Banking ETF (kre) declined 3.4% on the pace of giving back part of Thursday’s gains. In the wake of Thursday’s rally, other regional banks also declined. western alliance ,wall) fell 8%, while keycorp ,key) was off 2.4%. credit Suisse ,C) sold off about 9% in morning trade.
Earlier on Thursday, led by a group of big US banks JP Morgan ,jpm) pooled $30 billion in a joint rescue of First Republic Bank.
The March Consumer Sentiment Index from the University of Michigan is one of the last economic data out this week. Wall Street expects a reading of 67.0 for the mid-month estimate.
On the earnings front, FedEx, ,FDX) rose as much as 11.7% in morning trading after the company reported strong fiscal third-quarter earnings late Thursday with bullish EPS guidance. The delivery giant fell short on revenue. Shares of FedEx indicated a breakout above a flat base of 217.49 buy point in premarket trade.
stock market today
chip giant NVIDIA ,NVDA) rose nearly 2% after Morgan Stanley upgraded the stock to overweight from equal weight with an increased price target of 304.
Electric-Vehicle Leader Tesla ,TSLA) traded 0.5% lower on Friday morning. Also, Dow Jones Tech Giants Apple ,AAPL) And Microsoft ,msft) today’s shares were higher before the market open.
chip leader advanced micro Device ,amd), ibd swingtrader stock meta platform ,meta) and IBD Leaderboard Watchlist Stock Palo Alto Networks ,panw) — 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. AMD was featured on 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.
IBD’s latest newsletter MarketDiem delivers actionable ideas for stocks, options and crypto to your inbox
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Friday’s opening bell, Dow Jones futures lost 0.75% versus fair value, while S&P 500 futures were down 0.7%. Nasdaq 100 futures, which do not track financials, traded down 0.3% in morning action. A triple witching day of options and futures expiry is likely to see higher than normal trading volumes during Friday’s session.
US exchange-traded funds include the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) 0.3% and the SPDR S&P 500 ETF (Spy) went down 0.7% early Friday.
The 10-year US Treasury yield reached 3.58% on Thursday amid the ongoing banking crisis, still on pace for big weekly losses. The 10-year Treasury yield declined to 3.5% in morning trading on Friday.
US oil prices climbed back towards $69 a barrel but were down nearly 10% for the week, as West Texas Intermediate headed for its worst week since early December.
stock market correction
The Dow Jones Industrial Average rose 1.2% and the S&P 500 rose 1.8% on Thursday. The Nasdaq Composite rose 2.5%. The small-cap Russell 2000 shed recent weakness, climbing 1.4%.
Thursday’s Big Picture column commented, “Thursday’s action was bullish despite a lack of decisive volume, as several major stocks continued to establish and break past perfect buy points. Meanwhile, the Nasdaq moved above a trendline that Adds a few higher highs. Back on Feb 2, another sign of consolidating market conditions.”
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 0.2% in early trading Friday.
After the recent decline, 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. The relative strength line is also holding up 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 added 0.1% in early Friday trading.
3 Top Growth Stocks to Watch stock market correction
Top stocks to watch: AMD, Meta, Palo Alto
Advanced Micro Devices broke 89.04 buy point in flat base during this week’s gains and has now extended beyond 5% buy range with top at 93.49. AMD is featured in Wednesday’s IBD Screen of the Day column. AMD stock rose 1.2% on Friday morning.
Backstory: In early February, the chipmaker reported stronger-than-expected data center chip sales in the fourth quarter. But AMD tempered that news with softer guidance for the current period.
Backstory: 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 of dollars on a risky bet to create the “metaverse,” a virtual reality world that hasn’t taken hold yet.
ibd leaderboard Stock Palo Alto Networks is close to a cup-with-handle’s 192.94 buy point after rising 3.25% on Thursday. PANW stock traded down 0.2% on Friday.
Backstory: 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. .
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 16, 2023
Join IBD experts as they analyze key stocks in the current stock market correction on IBD Live
Tesla stock gained 2% on Thursday, erasing Wednesday’s losses. The shares continue to rebound from its key 50-day moving average. The stock closed nearly 52% from its 52-week high on Thursday.
TSLA stock fell 0.5% on Friday morning as it struggled to defend Thursday’s gains.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones shares, Apple shares rose 1.9% on Thursday, adding to this week’s rebound from the 200-day line. AAPL rose 0.1% on Friday morning.
Microsoft shares moved further above their 200-day line after Thursday’s 4.05% rally. MSFT stock is far away from a new buy point at 276.86 due to formation of flat base. The stock is down about 13 per cent from its 52-week high. MSFT stock rose 0.8% in early trading Friday.
Be sure to follow Scott Lehton on Twitter @IBD_SLehtonen For more information on Growth Stocks and the Dow Jones Industrial Average.
You may also like:
Top Growth Stocks to Buy and Watch
Learn to Time the Market with IBD’s ETF Market Strategy
Find the Best Long-Term Investments with IBD Long-Term Leaders
MarketSmith: Research, Charts, Data & Coaching All in One Place
How To Research Growth Stocks: Why This IBinvesD Tool Makes Finding Top Stocks Simple