Dow Jones futures were higher Tuesday morning, rising nearly 150 points after the key inflation report as rebounding financials underpinned early trade. distressed regional banks first republic ,FRC) surged 56% in pre-market action as federal steps to ease banking fears appeared to be taking effect after Monday’s decline.
SPDR S&P Regional Banking ETF (kre) jumped more than 6%, bouncing back from Monday’s 12% dive. keycorp ,key) about 15% advanced, while western alliance ,wall) jumped 34%. Finally, charles schwab ,schw) returned 12% in morning trade.
cpi inflation report
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.
This could dial-down the recent significance of the CPI, which rose 0.4% in February, matching expectations. Core CPI rose 0.5% in February, which was above the 0.4% estimate. The headline CPI inflation rate came in at 6.0%, in line with projections, with the core inflation rate also meeting projections of 5.5%.
But almost half-point moves now appear to be off the table, regardless of the CPI outcome. And it comes just a week after Fed Chair Jerome Powell indicated that policymakers were ready to hike rates at next week’s meeting at February’s quarter-point pace.
Bank failures triggered a rush into bonds and other safe havens, leading to a sharp decline in Treasury yields and indicating growing doubts about the economy’s strength. Even if the Fed doesn’t hold off next week, markets are now betting that a rate cut is just around the corner.
On the earnings front, gitlab ,gtlb) plunged 30% in pre-market trading after the company gave 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
United Airlines ,ual) declined 4.7% after the company said it expected to see a quarterly loss in the first quarter.
Electric-Vehicle Leader Tesla ,TSLA) traded up 1% on Tuesday morning after positive registration data from China. Meanwhile, Dow Jones tech giant Apple ,AAPL) And Microsoft ,msft) were higher 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.
IBD’s latest newsletter MarketDiem delivers actionable ideas for stocks, options and crypto to your inbox
Dow Jones Today: Oil Prices, Treasury Yields
Before Tuesday’s market open, Dow Jones futures were up 0.5% and S&P 500 futures were up 0.6%. Tech-heavy Nasdaq 100 futures rose 0.5% in morning action.
US exchange-traded funds include the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) 0.8% and the SPDR S&P 500 ETF (Spy) moved up 0.8% early Tuesday.
The 10-year US Treasury yield fell to 3.51% on Monday, as safe-haven trading rallied bonds following the SVB collapse. Then on Tuesday, the 10-year Treasury yield reached 3.62% in morning trading.
Oil prices continued to slide early on Tuesday after Monday’s sharp decline. West Texas Intermediate futures dropped 2%, trading slightly above $73 a barrel.
stock market correction
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.
Monday’s Big Picture column commented, “The S&P 500 slid more than 1% in early trading but rebounded to close less than 0.2% lower. The index found support around 3800, where buyers during the December market decline also appeared.”
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 rose 0.1% in early trading Tuesday.
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. CRM stock climbed 0.7% on Tuesday.
3 Top Growth Stocks to Watch stock market correction
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. Meta shares were up 0.9% Tuesday 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 up 0.5% on Tuesday.
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 lower early Tuesday.
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|
|new relic||,New,||80.98||flat base|
|Nike||,NKE,||131.41||cup with handle|
|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
Join IBD experts as they analyze key stocks in the current stock market correction on IBD Live
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.
Shares of TSLA were up 1% on Tuesday morning, looking to add to Monday’s gains.
On Tuesday, weekly China 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. AAPL gained 0.8% on Tuesday morning.
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. MSFT stock climbed 1% in early trading Tuesday.
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 IBD Tool Makes Finding Top Stocks Simple