Dow Jones futures fall 400 points on SVB bailout plan; First Republic crashes 65%

Dow Jones futures fell briefly 400 points Monday morning as global markets grappled with the ongoing US banking crisis. The FDIC and other financial regulators guaranteed all deposits of SVB Finance (SIVB). Regulators also took control on Sunday signature bank (SBNY). Meanwhile San Francisco First Republic (FRC) is down 65% in premarket trading despite receiving additional funding from the Federal Reserve and JP Morgan (JPM).


On the economic front, the consumer price index will be watched on Tuesday. CPI is expected to rise 0.4%, both overall and excluding food and energy. That would bring headline CPI inflation down to 6% from 6.1% in January, while core inflation would drop to 5.5% from 5.6%.

At the end of the season, revenue will continue to flow that week. Below are Academy Sport & Outdoor (ASO), Adobe (ADBE), Dollar General (DG), FedEx (FDX), five below (FIVE), GitLab (GTLB) and lennar (LEN).

stock market today

drug giant Pfizer (PFE) agreed to pay $43 billion for biotechnology blessings (SGEN). Pfizer stock fell 2% while SGEN stock rose 18%.

Leading provider of genetic screening tools Enlightenment (ILMN) rose more than 8% early after news reported that activist investor Carl Icahn was planning to appoint three people to the company’s board.

Market leader in electric vehicles Tesla (TSLA) was down more than 3% on Monday morning after Wolfe Research downgraded the stock to peer-perform from outperform. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) gained ground ahead of the market open.

IBD Leaderboard Watch List Palo Alto Networks (PANW) and New relic (NEWR) – as well as Dow Jones stocks Foreclosure (CRM) – are among the top stocks to watch during the fresh stock market correction.

Palo Alto is a stock on the IBD Leaderboard watch list. New Relic was an IBD Stock of the Day recently. And Salesforce was featured in last week’s “Stocks Near a Buy Zone” column.

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Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Monday’s market open, Dow Jones futures were down 0.75% and S&P 500 futures down 0.8% versus fair value. The tech-heavy Nasdaq 100 futures lost 0.4% in morning action, with Seagen and Illumina leading the index.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) is down 0.4% and the SPDR S&P 500 ETF (SPY) is down 0.8% early Monday.

The US 10-year Treasury yield fell to 3.69% on Friday. Then on Monday, the 10-year yield dipped to 3.51% in early morning trade as safe-haven trading propelled bonds sharply higher following the SVB collapse. The dollar fell, losing ground against the euro and the yen.

Oil prices sold off Monday morning after Friday’s brief bounce. West Texas Intermediate futures are down nearly 5% in early trade to trade below $73 a barrel early Monday. Gold and silver also rallied as investors looked for solid ground. Gold rose 1.4% to above $1,892 an ounce. Silver gained 3.3% and lost $21 an ounce.

stock market correction

There was a sharp sell-off in the stock market on Friday as the main stock index ended with big losses. The Dow Jones Industrial Average fell 1.1% and the S&P 500 fell 1.45%. The tech-heavy Nasdaq fell 1.8%.

Friday’s Big Picture column commented, “IBD changed its market outlook to ‘uptrend under pressure’ on Thursday. And after Friday’s sell-off, we have further lowered our outlook to ‘market in correction’. This requires investors to avoid buying stocks and switch to defensive trading, such as B. Profit-taking and Loss Limitation.”

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

Eyeing Dow Jones Stocks: Salesforce

For the past few weeks, Dow Jones leader Salesforce has shown major bullishness after strong fourth-quarter results. But those gains have mostly evaporated given the recent market weakness, and now the stock is back below an entry of 178.94 cup w/ handle. Still, the stock’s recent strength is reason to watch the software leader in the coming sessions. CRM stock rose 0.5% on Monday.

4 top growth stocks to buy and watch stock market correction

Top stocks to watch: Palo Alto, New Relic

IBD leaderboard watch Palo Alto Networks stock continues to trade quietly in a grip after the stock’s 12.5% ​​surge on Feb. 22. Shares remain within striking distance of the buy point from a 192.94 basis. On an optimistic note, the stock’s relative strength line is at new highs as the stock is significantly outperforming the market average. PANW shares rose 0.2% on Monday morning.

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.

The latest IBD stock of the day, New Relic, is operating on a flat basis with a buy point of 80.98 after Feb. 8’s profit-driven rally. The RS line will hold out for the time being. NEWR stock was slightly down on Monday.

Backstory: New Relic offers a cloud-based suite of software products that enable companies to collect, store and analyze massive amounts of data in real time. Customers gain better insight into their enterprise software to make data-driven decisions.

Learn how to time the market with IBD’s ETF market strategy

Stocks to watch during the stock market correction

These are five top stocks to watch in today’s stock market, including two top Dow Jones stocks.

Company Name symbol Correct purchase point Type of purchase point
New relic (NEWS) 80.98 flat base
American Express (AXP) 182.25 Cup with handle
Palo Alto Networks (PANW) 192.94 Cup with handle
Foreclosure (CRM) 178.94 Cup with handle
Source: IBD data as of March 9, 2023

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

Tesla stock

Tesla stock experienced a four-day losing streak with modest gains on Friday. It is attempting to find support around its key 50-day moving average and closed about 55% below its 52-week high on Friday.

Tesla shares fell 3% Monday morning, threatening to erase Friday’s gains.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell 1.4% on Friday to finish down 1.7% for the week. The stock was up 0.2% early Monday.

Microsoft shares extended their losing streak to four sessions, falling 1.5% on Friday. The stock is more than 20% off its 52-week high after recent declines. MSFT shares were up 0.7% Monday morning.

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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Dow Jones futures fall after SVB bailout plan

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